BORROWED FUNDS

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



	Nine Months Ended September 30,
	2017						2016
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 September 30	$	199,500		$	3,488		$	231,200		$	3,457
Average balance outstanding for the period	196,728			3,474			177,239			3,455
Maximum balance outstanding at any month end during period	229,300			3,488			231,200			3,457
Weighted average interest rate for the period	1.10		%	1.03		%	0.59		%	0.50		%
Weighted average interest rate for balances
outstanding at September 30	1.32		%	1.25		%	0.54		%	0.50		%

Long-term borrowings: Our long-term borrowings of $45.8 million, $46.7 million and $74.1 million at September 30, 2017, December 31, 2016, and September 30, 2016 respectively, consisted primarily of advances from the Federal Home Loan Bank (“FHLB”) and structured repurchase agreements with unaffiliated institutions. All FHLB advances are collateralized primarily by similar amounts of residential mortgage loans, certain commercial loans, mortgage backed securities and securities of U. S. Government agencies and corporations.



	Balance at September 30,				Balance at December 31,
Dollars in thousands	2017		2016		2016
Long-term FHLB advances	$	755	$	792	$	767
Long-term repurchase agreements	45,000		72,000		45,000
Term loan	—		1,354		903
Total	$	45,755	$	74,146	$	46,670

At December 31, 2016, the term loan was secured by the common stock of our subsidiary bank, had a variable interest rate of prime minus 50 basis points and matured in second quarter 2017. Our long term FHLB borrowings and repurchase agreements bear both fixed and variable rates and mature in varying amounts through the year 2026.

The average interest rate paid on long-term borrowings for the nine month period ended September 30, 2017 was 4.32% compared to 4.43% for the first nine months of 2016.

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 September 30, 2017, December 31, 2016, and September 30, 2016.

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,	2017	$	4	$	—
	2018	45,017		—
	2019	18		—
	2020	19		—
	2021	20		—
	Thereafter	677		19,589
		$	45,755	$	19,589