Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $108.5 million at September 30, 2015, a decrease of $13.4 million from $121.9 million at December 31, 2014. The decrease during the first nine months of 2015 was primarily due to declines in balances of a few customers due to changes in cash flow needs for their businesses. All of the transactions have overnight maturities.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default. Repurchase agreements by class of collateral pledged are as follows (in thousands):



	September 30, 2015
US Treasury securities and obligations of U.S. government corporations & agencies	$	82,206
Mortgage-backed securities: GSE: residential	26,293
Total	$	108,499

FHLB borrowings remained the same at $20 million for September 30, 2015 and December 31, 2014. At September 30, 2015 the advances were as follows:


•	$5 million advance with a 10-year maturity, at 4.58%, due July 14, 2016, one year lockout, callable quarterly


•	$5 million advance with a 6-year maturity, at 2.30%, due August 24, 2020


•	$5 million advance with a 7-year maturity, at 2.55% due October 1, 2021


•	$5 million advance with a 8-year maturity, at 2.40% due January 9, 2023