Other Borrowed Funds

9 Months Ended

Sep. 30, 2015

12. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS

Other borrowed funds as of the dates indicated were as follows:


	September 30,		December 31,
	2015		2014
	(Dollars in thousands)

Federal Home Loan Bank advances	$	158,893	$	47,586
Repurchase agreements		3,080		4,605
Total	$	161,973	$	52,191

Federal Home Loan Bank Advances — The Company has an available borrowing arrangement with the FHLB, which allows the Company to borrow on a collateralized basis. At September 30, 2015 and December 31, 2014, total unused borrowing capacity of $312.3 million and $367.2 million, respectively, was available under this arrangement. At September 30, 2015, $158.9 million was outstanding with an average interest rate of 0.20% and all of the Company’s FHLB advances mature within eight years. At December 31, 2014, $47.6 million was outstanding with an average interest rate of 0.25% and all of the Company’s FHLB advances mature within eight years. These borrowings are collateralized by a blanket lien on certain loans. The total borrowing capacity increased due to loan portfolio growth. The Company utilizes these borrowings to meet liquidity needs and to fund certain fixed rate loans in its loan portfolio.

Federal Reserve Bank — The Company has an available borrower in custody arrangement with the Federal Reserve Bank of Dallas (the “Fed”), which allows the Company to borrow, on a collateralized basis. Certain commercial and consumer loans are pledged under this arrangement. The Company maintains this borrowing arrangement to meet liquidity needs pursuant to its contingency funding plan. At September 30, 2015 and December 31, 2014, $352.9 million and $377.3 million, respectively, were available under this arrangement and no borrowings were outstanding.

Securities Sold Under Agreements to Repurchase — Securities sold under agreements to repurchase represent the purchase of interests in securities by banking customers. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. Repurchase agreements with banking customers are settled on the following business day. All securities sold under agreements to repurchase are collateralized by pledged securities. The securities underlying the repurchase agreements are held in safekeeping by the Bank’s safekeeping agent.

Federal Funds Purchased — The Company has available federal funds lines of credit with its correspondent banks. As of September 30, 2015 and December 31, 2014, there were no federal funds purchased outstanding.