7.	SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased, securities sold under repurchase agreements

and short-term Federal Home Loan Bank (“FHLB”) advances with original maturities of

one

year or less. Short-term borrowings totaled

$10.3

million and

$15.6

million as of

March 31, 2018

and

December 31, 2017,

respectively.

Federal funds purchased, which represent unsecured lines of credit that generally mature within

one

four

days, are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both

March 31, 2018

and

December 31, 2017,

there were

federal funds purchased outstanding, and the Bank had

$18.8

million in available unused lines of credit with correspondent banks and the Federal Reserve.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in

connection with the transaction. The Bank

may

be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of

March 31, 2018

and

December 31, 2017

totaled

$0.3

million and

$0.6

million, respectively.

Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source.

As of

March 31, 2018

and

December 31, 2017,

the Bank had

$10.0

million and

$15.0

million, respectively, in outstanding FHLB advances with original maturities of less than

one

year.