SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2019

11. SHORT-TERM BORROWINGS

The bank is a member of the FHLB and maintained a $1.84 billion line of credit, of which $1.57 billion remained available as of December 31, 2019. At December 31, 2019, short-term borrowings under this arrangement totaled $150.0 million. At December 31, 2018, short-term borrowings under this arrangement totaled $197.0 million.

The FHLB provides standby letters of credit on behalf of the bank to secure certain public deposits. If the FHLB is required to make a payment on a standby letter of credit, the payment amount is converted to an advance at the FHLB. The standby letters of credit issued on our behalf by the FHLB totaled $78.9 million and $4.6 million at December 31, 2019 and 2018, respectively.

At December 31, 2019 and 2018, our bank had additional unused borrowings available at the Federal Reserve discount window of $65.3 million and $73.9 million, respectively. As of December 31, 2019 and 2018, certain commercial real estate and commercial loans with a carrying value totaling $126.1 million and $123.3 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans.

Interest expense on short-term borrowings totaled $4.3 million, $1.2 million and $0.2 million in 2019, 2018 and 2017, respectively.

A summary of our short-term borrowings as of December 31, 2019, 2018 and 2017 is as follows:



	Year Ended December 31,
	2019			2018			2017
	(Dollars in thousands)
Amount outstanding at December 31	$	150,000		$	197,000		$	32,000
Average amount outstanding during year	185,909			50,630			15,531
Highest month-end balance during year	334,500			197,000			69,000
Weighted average interest rate on balances outstanding at December 31	1.81		%	2.59		%	1.63		%
Weighted average interest rate during year	2.31		%	2.44		%	1.18		%