9.	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

$15.6

million and

$10.1

million as of

December 31, 2017

and

2016,

respectively.

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

one

four

days, are availabl

e to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both

December 31, 2017

and

2016,

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. T

he 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

December 31, 2017

and

2016

totaled

$0.6

million and

$0.1

million, respectively.

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

As of

December 31, 2017

and

2016,

the Bank had

$15.0

million and

$10.0

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

one

year.