Borrowed Funds

6 Months Ended

Jun. 30, 2020

BORROWED FUNDS

Short-term borrowings: A summary of short-term borrowings is presented below:



	Six Months Ended June 30,
	2020						2019
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased and Lines of Credit			Short-term FHLB Advances			Federal Funds Purchased and Lines of Credit
Balance at June 30	$	90,800		$	145		$	225,200		$	143
Average balance outstanding for the period	107,530			145			192,895			777
Maximum balance outstanding at any month end during period	161,600			145			225,200			143
Weighted average interest rate for the period	1.10		%	0.83		%	2.72		%	2.48		%
Weighted average interest rate for balances
outstanding at June 30	0.39		%	0.25		%	2.51		%	2.50		%



	Year Ended December 31, 2019
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased and Lines of Credit
Balance at December 31	$	199,200		145
Average balance outstanding for the period	193,992			458
Maximum balance outstanding at any month end during period	237,400			145
Weighted average interest rate for the period	2.48		%	2.43	%
Weighted average interest rate for balances
outstanding at December 31	1.83		%	1.75	%

Long-term borrowings: Our long-term borrowings of $708,000 and $717,000 at June 30, 2020 and December 31, 2019, respectively, consisted of a 5.34% fixed rate advance from the Federal Home Loan Bank (“FHLB”), maturing in 2026. This FHLB advance is collateralized by a blanket lien of $1.22 billion of residential mortgage loans, certain commercial loans, mortgage backed securities and securities of U.S. Government agencies and corporations.

Subordinated debentures owed to unconsolidated subsidiary trusts: We have three statutory business trusts that were formed for the purpose of issuing mandatorily redeemable securities (the “capital securities”) for which we are obligated to third party investors and investing the proceeds from the sale of the capital securities in our junior subordinated debentures (the

“debentures”). The debentures held by the trusts are their sole assets. Our subordinated debentures totaled $19.6 million at June 30, 2020 and December 31, 2019.

The capital securities held by SFG Capital Trust I, SFG Capital Trust II, and SFG Capital Trust III qualify as Tier 1 capital under Federal Reserve Board guidelines. In accordance with these Guidelines, trust preferred securities generally are limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital.

A summary of the maturities of all long-term borrowings and subordinated debentures for the next five years and thereafter is as follows:



Dollars in thousands		Long-term borrowings		Subordinated debentures owed to unconsolidated subsidiary trusts
Year Ending December 31,	2020	$	9	$	—
	2021	20		—
	2022	21		—
	2023	22		—
	2024	23		—
	Thereafter	613		19,589
		$	708	$	19,589