Borrowed Funds

The following table summarizes the Corporation’s borrowed funds as of and for the year ended December 31:



(Dollar amounts in thousands)	2017					2016
			Average		Average			Average		Average
	Balance		Balance		Rate	Balance		Balance		Rate
Short-term borrowed funds	$	2,500	$	4,588	2.82%	$	9,500	$	2,341	3.34%
Long-term borrowed funds	23,500		35,949		3.03%	34,500		35,141		3.06%
	$	26,000	$	40,537		$	44,000	$	37,482

Short-term borrowed funds at December 31, 2017 consisted of $2.5 million outstanding on a $6.0 million unsecured line of credit with a correspondent bank with a rate of 4.75%, compared to $7.0 million in FHLB overnight advances with a rate of 0.74% and $2.5 million outstanding on a $5.0 million unsecured line of credit with a correspondent bank with a rate of 4.25% at December 31, 2016.

Long-term borrowed funds at December 31, 2017 consisted of four $5.0 million FHLB term advances totaling $20.0 million, maturing between 2018 and 2021 and having fixed interest rates between 1.69% and 2.06%. This compares to six $5.0 million FHLB advances totaling $30.0 million at December 31, 2016. All borrowings from the FHLB are secured by a blanket lien of qualified collateral. Qualified collateral at December 31, 2017 totaled $318.6 million. In addition, during the second quarter of 2016, the Corporation borrowed a $5.0 million, five year unsecured term advance with a correspondent bank. The term advance has a fixed rate of 4.75% and principal payments of $250,000 are due on the first day of each quarter until maturity. At December 31, 2017 and 2016, the outstanding balance on this term advance was $3.5 million and $4.5 million, respectively.


9.	Borrowed Funds (continued)

Scheduled maturities of borrowed funds for the next five years are as follows:



(Dollar amounts in thousands)	Amount
2018	$	8,500
2019	6,000
2020	6,000
2021	5,500
2022	—
Thereafter	—
	$	26,000

The Bank maintains a credit arrangement with the FHLB as a source of additional liquidity. The total maximum borrowing capacity with the FHLB, excluding loans outstanding of $20.0 million and irrevocable standby letters of credit issued to secure certain deposit accounts of $120.7 million at December 31, 2017 was $177.9 million. In addition, the Corporation has $3.5 million of funds available on a line of credit through a correspondent bank.