Short-term Borrowings

9 Months Ended

Sep. 30, 2013

Short-term Borrowings

Short-term Borrowings

9. Short-term Borrowings

Short-term borrowings are summarized as follows (in thousands).

	September 30,		December 31,
	2013		2012
Federal funds purchased	$	91,875	$	269,625
Securities sold under agreements to repurchase	121,222		85,725
Federal Home Loan Bank notes	—		250,000
Short-term bank loans	92,200		122,900
	$	305,297	$	728,250

Federal funds purchased and securities sold under agreements to repurchase generally mature daily, on demand, or on some other short-term basis. The Bank and FSC execute transactions to sell securities under agreements to repurchase with both customers and broker-dealers. Securities involved in these transactions are held by the Bank, FSC or the dealer.

Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands).

	Nine Months Ended
	September 30, 2013
Average balance during the period	$	284,819
Average interest rate during the period	0.19		%

	September 30,			December 31,
	2013			2012
Average interest rate at end of period	0.14		%	0.22		%
Securities underlying the agreements at end of period
Carrying value	$	152,808		$	122,153
Estimated fair value	$	146,197		$	122,435

Federal Home Loan Bank (“FHLB”) notes mature over terms not exceeding 365 days and are collateralized by FHLB Dallas stock, nonspecified real estate loans and certain specific commercial real estate loans. Other information regarding FHLB notes is shown in the following tables (dollars in thousands).

	Nine Months Ended
	September 30, 2013
Average balance during the period	$	142,274
Average interest rate during the period	0.13		%

	September 30,		December 31,
	2013		2012
Average interest rate at end of period	0.00	%	0.07	%

FSC uses short-term bank loans periodically to finance securities owned, customers’ margin accounts and underwriting activities. Interest on the borrowings varies with the federal funds rate. The weighted average interest rate on the borrowings at September 30, 2013 and December 31, 2012 was 1.09% and 1.16%, respectively.