12. BORROWED FUNDS

The following is a summary of borrowed funds by type, at or for the twelve months ended:



(Dollars in thousands)	Balance at End of Period		Weighted Average Interest Rate		Maximum Outstanding at Month End During the Period		Average Amount Outstanding During the Year		Weighted Average Interest Rate During the Year
December 31, 2018
FHLB advances	$	328,465	2.52	%	$	695,484	$	426,755	1.97	%
Federal funds purchased	157,975		2.52		157,975		89,325		1.90
Trust preferred borrowings	67,011		4.51		67,011		67,011		3.84
Senior debt	98,388		4.50		98,388		98,275		4.80
Other borrowed funds	47,949		0.23		71,584		39,314		0.12
December 31, 2017
FHLB advances	$	710,001	1.51	%	$	924,518	$	716,962	1.15	%
Federal funds purchased	28,000		1.54		135,000		87,438		1.11
Trust preferred borrowings	67,011		3.25		67,011		67,011		2.89
Senior debt	98,171		5.12		155,000		134,136		4.38
Other borrowed funds	34,623		0.09		97,984		43,514		0.09

Federal Home Loan Bank Advances

Advances from the FHLB with rates ranging from 1.50% to 2.79% at December 31, 2018 are due as follows:



(Dollars in thousands)	Amount		Weighted Average Rate
2019	$	265,790	2.58	%
2020	33,465		1.80
2021	29,210		2.77
	$	328,465	2.52	%

Pursuant to collateral agreements with the FHLB, advances are secured by qualifying loan collateral, qualifying fixed-income securities, FHLB stock and an interest-bearing demand deposit account with the FHLB.

As a member of the FHLB, we are required to purchase and hold shares of capital stock in the FHLB in an amount at least equal to 0.10% of our member asset value plus 4.00% of advances outstanding. We were in compliance with this requirement with a stock investment in FHLB of $19.3 million at December 31, 2018 and $31.3 million at December 31, 2017. This stock is carried on the accompanying Consolidated Statements of Financial Condition at cost, which approximates liquidation value.

The decrease in FHLB stock was due to the decrease in FHLB advances outstanding. We received dividends on our stock investment in FHLB of $1.5 million and $1.6 million for the years ended December 31, 2018 and 2017, respectively. For additional information regarding FHLB Stock, see Note 18.

Federal Funds Purchased and Securities Sold Under Agreements to Repurchase

During 2018 and 2017, we purchased federal funds as a short-term funding source. At December 31, 2018, we had purchased $158.0 million in federal funds at an average rate of 2.52%. At December 31, 2017, we had purchased $28.0 million in federal funds at an average rate of 1.54%.

We had no securities sold under agreements to repurchase at December 31, 2018 and December 31, 2017.

Trust Preferred Borrowings

In 2005, we issued $67.0 million of aggregate principal amount of Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate. These securities are callable and have a maturity date of June 1, 2035.

Senior Debt

On September 1, 2017, we redeemed $55.0 million in aggregate principal amount of 6.25% senior notes due 2019 which were issued in 2012 (the 2012 senior notes). The 2012 senior debt were repaid using a portion of the proceeds from our 2016 issuance of senior unsecured fixed-to-floating rate notes (the 2016 senior notes) described below. We recorded noninterest expense of $0.7 million due to the write-off of unamortized debt issuance costs in connection with this redemption.

On June 13, 2016, the Company issued $100 million of the 2016 senior notes. The 2016 senior notes mature on June 15, 2026 and have a fixed coupon rate of 4.50% from issuance to but excluding June 15, 2021 and a variable coupon rate of three month LIBOR plus 3.30% from June 15, 2021 until maturity. The 2016 senior notes may be redeemed beginning on June 15, 2021 at 100% of principal plus accrued and unpaid interest. The proceeds are being used for general corporate purposes.

Other Borrowed Funds

Included in other borrowed funds are collateralized borrowings of $47.9 million and $34.6 million at December 31, 2018 and 2017, respectively, consisting of outstanding retail repurchase agreements, contractual arrangements under which portions of certain securities are sold overnight to retail customers under agreements to repurchase. Such borrowings were collateralized by mortgage-backed securities. The average rates on these borrowings were 0.12% and 0.09% at December 31, 2018 and 2017 respectively.

Borrower in Custody

The Bank had $176.4 million and $222.8 million of loans pledged to the Federal Reserve of Philadelphia (FRB) at December 31, 2018 and December 31, 2017, respectively. The Bank did not borrow funds from the FRB during 2018 or 2017.