SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

3 Months Ended

Mar. 31, 2016

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

13. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS

Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements.  All such securities are under the Bank’s control.

At March 31, 2016 and December 31, 2015, all securities sold under agreements to repurchase had overnight maturities. Information regarding securities sold under agreements to repurchase follows:

(dollars in thousands)	March 31, 2016			December 31, 2015
Outstanding balance at end of period	$	319,893		$	395,433
Weighted average interest rate at end of period		0.02	%		0.02	%
Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	222,290		$	244,707
Mortgage backed securities - residential		74,506			82,666
Collateralized mortgage obligations		117,577			130,821
Total securities pledged	$	414,373		$	458,194

		Three Months Ended
	March 31,
(dollars in thousands)	2016			2015
Average outstanding balance during the period	$	407,698		$	391,254
Average interest rate during the period		0.02	%		0.04	%
Maximum outstanding at any month end during the period	$	367,373		$	408,955