BORROWED FUNDS

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



	Three Months Ended March 31,
	2018						2017
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 March 31	$	190,000		$	3,513		$	225,400		$	3,468
Average balance outstanding for the period	240,179			3,506			193,481			3,465
Maximum balance outstanding at any month end during period	262,000			3,513			225,400			3,468
Weighted average interest rate for the period	1.72		%	1.50		%	0.84		%	0.78		%
Weighted average interest rate for balances
outstanding at March 31	2.02		%	1.75		%	1.02		%	1.00		%



	Year Ended December 31, 2017
Dollars in thousands	Short-term FHLB Advances			Short-term Repurchase Agreements			Federal Funds Purchased and Lines of Credit
Balance at December 31	$	247,000		$	—		3,499
Average balance outstanding for the period	201,712			519			3,512
Maximum balance outstanding at any month end during period	247,000			—			3,499
Weighted average interest rate for the period	1.19		%	0.12		%	1.10	%
Weighted average interest rate for balances
outstanding at December 31	1.60		%	—		%	1.50	%

Long-term borrowings: Our long-term borrowings of $45.7 million and $45.8 million at March 31, 2018 and December 31, 2017, 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 March 31,		Balance at December 31,
Dollars in thousands	2018		2017
Long-term FHLB advances	$	747	$	751
Long-term repurchase agreements	45,000		45,000
Total	$	45,747	$	45,751

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 three month period ended March 31, 2018 was 4.28% compared to 4.26% for the first three months of 2017.

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 March 31, 2018 and December 31, 2017.

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,	2018	$	45,013	$	—
	2019	18		—
	2020	19		—
	2021	19		—
	2022	20		—
	Thereafter	658		19,589
		$	45,747	$	19,589