Federal Funds Purchased and Securities Sold Under Agreement to Repurchase

12 Months Ended

Dec. 31, 2011

Federal Funds Purchased And Securities Sold Under Agreement To Repurchase

Federal Funds Purchased and Securities Sold Under Agreement to Repurchase

Note 10 Federal Funds Purchased and Securities Sold Under Agreement to Repurchase

Information regarding securities sold under agreements to repurchase and Federal funds purchased for the years ended December 31, is detailed in the following tables:

Securities Sold Under Agreements to Repurchase (dollar amounts in thousands)	2011			2010			2009
Total outstanding at December 31	$	169,090		$	183,609		$	192,784
Maximum month-end balance		243,163			192,356			203,094
Average balance during the year		173,552			185,516			190,965
Weighted average rate at December 31		2.61	%		2.82	%		2.97	%
Average interest rate paid during the year		2.81	%		2.92	%		3.27	%

Federal Funds Purchased (dollar amounts in thousands)	2011		2010		2009
Average balance during the year	140		69		91
Weighted average rate at December 31	N/A		N/A		N/A
Average interest rate paid during the year	0.72	%	0.71	%	0.52	%

Securities sold under agreements to repurchase (“repurchase agreements”) are secured borrowings that typically mature within thirty to ninety days, although the Company has entered into repurchase agreements with the Federal Home Loan Bank (“FHLB”) with maturities that extend through 2017.  The Company uses both retail and wholesale repurchase agreements. Retail repurchase agreements are arrangements with local customers of the Company, in which the Company agrees to sell securities to the customer with an agreement to repurchase those securities at a specified later date. Retail repurchase agreements totaled $49.1 million at December 31, 2011. The Company’s wholesale repurchase agreements are primarily with the FHLB.  As of December 31, 2011, the Company had $120.0 million in repurchase agreements with the FHLB, of which $115.0 million mature over one year.  Maturities of repurchase agreements due over one year include $35.0 million in 2013, $25.0 million in 2014, $45.0 million in 2016, and $10.0 million in 2017.

Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities.

During 2010, the Company prepaid the $5.0 million repurchase agreement with the FHLB, where the Company had elected the fair value option.  Net mark-to-market pre-tax losses of $147,000 related to this repurchase agreement are included on the Company’s Consolidated Statements of Income in “Mark-to-Market Gain (Loss) on Liabilities Held at Fair Value.”

Federal funds purchased are short-term borrowings that typically mature within one to ninety days.