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| Borrowed Funds | 9. Borrowed Funds The following is a summary of short-term borrowings at December 31, 2025 and 2024 with original maturities of less than one year:
Repurchase agreements were secured by investment securities with a market value of $24.8 million at December 31, 2025 and $22.9 million at December 31, 2024. The Bank has unsecured lines of credit totaling $140.0 million with correspondent financial institutions and $83.9 million in a secured line with the Federal Reserve Discount Window to meet daily liquidity requirements. At December 31, 2025, there were no overnight borrowings outstanding. At December 31, 2024, there were $50.0 million in outstanding secured borrowings with the Federal Reserve Discount Window. The following is a summary of long-term borrowings at December 31, 2025 and 2024 with original maturities exceeding one year:
In March 2004, Trust I and Trust II issued preferred securities with an aggregate liquidation amount of $30.0 million to third-party investors and issued common equity with an aggregate liquidation amount of $0.9 million to First United Corporation. These Trusts used the proceeds of these offerings to purchase an equal amount of junior subordinated debentures (“TPS Debentures”), as follows: $20.6 million—floating rate payable quarterly based on three-month Secured Overnight Financing Rate (“SOFR”) plus 275 basis points (6.72% at December 31, 2025), maturing in 2034, became redeemable five years after issuance at First United Corporation’s option. $10.3 million—floating rate payable quarterly based on three-month SOFR plus 275 basis points (6.72% at December 31, 2025) maturing in 2034, became redeemable five years after issuance at First United Corporation’s option. The TPS Debentures issued to each of the Trusts represent the sole assets of that Trust, and payments of the TPS Debentures by First United Corporation are the only sources of cash flow for the Trust. First United Corporation has the right, without triggering a default, to defer interest on all of the TPS Debentures for up to 20 quarterly periods, in which case distributions on the preferred securities will also be deferred. Should this occur, the Corporation may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. At December 31, 2025, the contractual maturity of the outstanding $65.0 million FHLB advances is March 20, 2026, and the contractual maturity of the outstanding TPS Debentures is 2034. The Bank has a borrowing capacity agreement with the FHLB in an amount equal to 30% of the Bank’s assets. The available line of credit equaled $599.4 million at December 31, 2025 and $567.4 million at December 31, 2024. This line of credit, which can be used for both short and long-term funding, can only be utilized to the extent of available lendable collateral. The line is secured by certain qualified mortgage, commercial and home equity loans as follows (in thousands):
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