FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE



	Federal Funds Purchased			Securities Sold Under Agreements to Repurchase
	(In thousands)
2017
Outstanding at end of year	$	30,000		$	32,169
Maximum outstanding at any month-end	100,000			67,249
Average balance for the year	22,742			58,872
Weighted average rate at end of year	1.50		%	0.09		%
Weighted average rate paid for the year	1.19		%	0.09		%
2016
Outstanding at end of year	$	80,000		$	59,624
Maximum outstanding at any month-end	180,000			77,466
Average balance for the year	29,542			66,282
Weighted average rate at end of year	0.75		%	0.05		%
Weighted average rate paid for the year	0.54		%	0.05		%
2015
Outstanding at end of year	$	—		$	58,215
Maximum outstanding at any month-end	102,000			75,313
Average balance for the year	10,008			64,320
Weighted average rate at end of year	—		%	0.05		%
Weighted average rate paid for the year	0.31		%	0.05		%

The federal funds purchased generally mature within 30 days of the transaction date.

Repurchase agreements are generally linked to commercial demand deposit accounts with an overnight sweep feature. In a repurchase agreement transaction, the Bank will generally sell an investment security, agreeing to repurchase either the same or a substantially identical security on a specified later date at a price slightly greater than the original sales price. The difference in the sale price and repurchase price is the cost of the use of the proceeds, or interest expense. Repurchase transactions are accounted for as financing arrangements rather than as sales of such securities, and the obligation to repurchase such securities is reflected as a liability in the Company’s consolidated balance sheets. The securities underlying the agreements remain under the Company’s control. Investment securities with a fair value of $144.3 million and $182.7 million were pledged as collateral for the securities sold under agreements to repurchase at December 31, 2017 and 2016, respectively.

As of December 31, 2017 and 2016, the Bank had unused federal funds lines with correspondent banks of $435.0 million and $485.0 million, respectively.