Other Short-Term Borrowings

12 Months Ended

Dec. 31, 2016

Other Short-Term Borrowings [Abstract]

Other Short-Term Borrowings

Note 8: Other Short-Term Borrowings

Short-term borrowings included the following at December 31, 2016 and 2015:

	2016		2015
	(In thousands)
Other Short-term borrowings	$	7,246	$	5,606

Securities sold under agreements to repurchase consist of obligations of the Bank to other parties. The obligations are secured by available-for-sale securities and such collateral is held by the Bank. The maximum amount of outstanding agreements at any month end during the years ended December 31, 2016 and 2015 totaled $7.2 million for both periods, and the average daily balance totaled $6.0 million and $6.4 million for years ended December 31, 2016 and 2015, respectively. These short-term borrowings were collateralized by $9.1 million, and $7.0 million of Mortgage-backed securities of government-sponsored entities at December 31, 2016 and 2015 respectively. The agreements at December 31, 2016, mature daily.

Repurchase agreements are offered by the Bank to commercial business customers to provide them with an opportunity to earn a return on their excess cash balances. These repurchase agreements are considered secured borrowings and are reported in other short-term borrowings. On a daily basis the Bank transfers securities to these customers in exchange for their cash and subsequently agrees to repurchase those same securities the next business day. In the event the Bank is unable to repurchase the securities from the customer, the customer will then have a claim against those securities.