Short-term Borrowings

3 Months Ended

Mar. 31, 2018

Short-term Borrowings

Short-term Borrowings

9. Short-term Borrowings

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

	March 31,		December 31,
	2018		2017
Federal funds purchased	$	102,575	$	101,775
Securities sold under agreements to repurchase		616,750		539,149
Federal Home Loan Bank		—		250,000
Short-term bank loans		345,000		315,500
	$	1,064,325	$	1,206,424

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 the Hilltop Broker-Dealers execute transactions to sell securities under agreements to repurchase with both customers and other broker-dealers. Securities involved in these transactions are held by the Bank, the Hilltop Broker-Dealers or a third-party dealer.

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

	Three Months Ended March 31,
	2018			2017
Average balance during the period	$	678,723		$	386,624
Average interest rate during the period		1.50	%		0.76	%
	March 31,			December 31,
	2018			2017
Average interest rate at end of period		1.39	%		1.21	%
Securities underlying the agreements at end of period:
Carrying value	$	629,999		$	581,636
Estimated fair value	$	652,535		$	598,300

Federal Home Loan Bank (“FHLB”) short-term borrowings 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 short-term borrowings is shown in the following tables (dollars in thousands).

	Three Months Ended March 31,
	2018			2017
Average balance during the period	$	26,111		$	180,000
Average interest rate during the period		2.03	%		0.61	%
		March 31,			December 31,
		2018			2017
Average interest rate at end of period		0.00	%		1.30	%

The Hilltop Broker-Dealers use short-term bank loans periodically to finance securities owned, margin loans to customers and correspondents, and underwriting activities. Interest on the borrowings varies with the federal funds rate. The weighted average interest rate on the borrowings at March 31, 2018 and December 31, 2017 was 2.59% and 2.27%, respectively.