10. Short-term borrowings

Short-term borrowings consisted of FHLB advances representing overnight borrowings at March 31, 2019 and December 31, 2018:

At and for the three months ended March 31, 2019

Weighted

Maximum

Average

Ending

Average

Month-End

Rate for

Rate at

Balance

the three monthe ended March 31,2019

March 31,2019

FHLB advances

109,000

121,954

133,725

2.70

At and for the year ended December 31, 2018

Weighted

Maximum

Average

Ending

Average

Month-End

Rate for

Rate at End

Balance

the Year

of the Year

FHLB advances

86,500

133,834

189,275

2.05

2.62

The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At March 31, 2019, the maximum borrowing capacity was $706,525 of which $146,446 was outstanding in borrowings. At December 31, 2018, the maximum borrowing capacity was $700,169 of which $124,406 was outstanding in borrowings. Short-term borrowings were used to fund our loan growth during the first three months of 2019 resulting in higher average balances as deposit balances decreased due to seasonal out flows of public fund deposits. Short-term borrowings are higher by $22,500 since year end 2018. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day.