SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

9 Months Ended

Sep. 30, 2015

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

NOTE 5 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase are shown below.

	September 30, 2015
	Remaining Contractual Maturity of the Agreements
	Overnight and  Continuous		Up to  30 days		30 - 90  days		Greater than 90  days		Total
Repurchase agreements and repurchase-to-maturity transactions	$	12,040,148	$	-	$	-	$	-	$	12,040,148
Gross amount of recognized liabilities for repurchase agreements in Consolidated Balance Sheet									$	12,040,148

	December 31, 2014
	Remaining Contractual Maturity of the Agreements
	Overnight and  Continuous		Up to  30 days		30 - 90  days		Greater than 90  days		Total
Repurchase agreements and repurchase-to-maturity transactions	$	11,848,266	$	-	$	-	$	-	$	11,848,266
Gross amount of recognized liabilities for repurchase agreements in Consolidated Balance Sheet									$	11,848,266

Securities sold under agreements to repurchase were secured by securities with an approximate carrying amount of $27,302,000 and $32,639,000 at September 30, 2015 and December 31, 2014, respectively. The carrying amount at September 30, 2015 was comprised of $11,080,000 in securities issued by U.S. government agencies, $8,959,000 in state and municipal securities, and $7,263,000 in mortgage-backed securities. The carrying amount at December 31, 2014 was comprised of $14,352,000 in securities issued by U.S. government agencies, $10,553,000 in state and municipal securities, and $7,734,000 in mortgage-backed securities. Also included in total borrowings at September 30, 2015 and December 31, 2014 were FHLB advances of $17,494,000 and $2,488,000, respectively.

Given that the value of the securities that are pledged fluctuate due to market conditions, the Company has no control over the market value. If the market value of the securities pledged falls below the repurchase price, the Company is obligated to promptly transfer additional securities, per the terms of the agreements to repurchase.