Securities Sold Under Agreements to Repurchase

ecurities sold under agreements to repurchase represent transactions where the Company sells certain of its investment securities and agrees to repurchase them at a specific date in the future. Securities sold under agreements to repurchase are accounted for as secured borrowings and reflect the amount of cash received in connection with the transaction. Information on securities sold under agreements to repurchase is as follows:


December 31, (Dollars in thousands)	201 7			201 6
S ecurities sold under agreements to repurchase
Amount outstanding at y ear-end	$	34,252		$	36,370
Average balance during the year		35,063			107,179
Maximum month-end balance during the year		38,079			140,218
Average interest rate during the year		.22	%		2.74	%
Average interest rate at year-end		.22			.36

Securities sold under agreements to repurchase are collateralized by U.S. government agency securities, primarily mortgage-backed securities. The Company

may

be required to provide additional collateral sec

uring the borrowings in the event of principal pay downs or a decrease in the market value of the pledged securities. The Company mitigates this risk by monitoring the market value and liquidity of the collateral and ensuring that it holds a sufficient level of eligible securities to cover potential increases in collateral requirements.

The following table represents the remaining maturity of

repurchase agreements disaggregated by the class of securities pledged as of the dates indicated

	Remaining Contractual Maturity of the Agreements
December 31 , 2017 (In thousands)	Overnight/ Continuous		Less Than 30 Days		30-89 Days		90 Days to One Year		Over One Year to Three Years		Total
Mortgage-backed securities – residential	$	32,341	$	1,200	$	-	$	454	$	257	$	34,252
Total	$	32,341	$	1,200	$	-	$	454	$	257	$	34,252

	Remaining Contractual Maturity of the Agreements
December 31 , 2016 (In thousands)	Overnight/ Continuous		Less Than 30 Days		30-89 Days		90 Days to One Year		Over One Year to Three Years		Total
Obligations of U.S. government-sponsored entities	$	5,596	$	301	$	-	$	258	$	1,027	$	7,182
Mortgage-backed securities – residential		28,086		902		-		200		-		29,188
Total	$	33,682	$	1,203	$	-	$	458	$	1,027	$	36,370

The Company entered into a balance sheet leverage

transaction in

2007

whereby it borrowed

$200

million in multiple fixed rate term repurchase agreements with an initial weighted average cost of

3.95%

and invested the proceeds in Government National Mortgage Association (“GNMA”) bonds, which were pledged as collateral. During

September 2016,

the Company prepaid the remaining balance of

$100

million on the repurchase agreements, which were due to mature in

November 2017.