Note 9 – Securities Sold Under Repurchase Agreements

Trustmark utilizes securities sold under repurchase agreements as a source of borrowing in connection with overnight repurchase agreements offered to commercial deposit customers by using its unencumbered investment securities as collateral. Trustmark accounts for its securities sold under repurchase agreements as secured borrowings in accordance with FASB ASC Topic 860-30, “Transfers and Servicing – Secured Borrowing and Collateral.” Securities sold under repurchase agreements are stated at the amount of cash received in connection with the transaction. Trustmark monitors collateral levels on a continual basis and may be required to provide additional collateral based on the fair value of the underlying securities. Trustmark’s repurchase agreements are transacted under master repurchase agreements that give Trustmark, in the event of default by the counterparty, the right of offset with the same counterparty. As of September 30, 2015, all repurchase agreements were short-term and consisted primarily of sweep repurchase arrangements, under which excess deposits are “swept” into overnight repurchase agreements with Trustmark. The following table presents the securities sold under repurchase agreements by collateral pledged at September 30, 2015 ($ in thousands):

	September 30, 2015

U.S. Government agency obligations Issued by U.S. Government sponsored agencies	$	34,747
Obligations of states and political subdivisions		11,506
Mortgage-backed securities
Other residential mortgage-backed securities Issued or guaranteed by FNMA, FHLMC or GNMA		106,807
Commercial mortgage-backed securities Issued or guaranteed by FNMA, FHLMC or GNMA		1,587
Total securities sold under repurchase agreements	$	154,647