XML 42 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 12 Months Ended
Dec. 31, 2015
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE  
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

11.SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

 

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 December 31, 2015 and 2014, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows:

 

 

 

 

 

 

 

 

 

 

December 31,  (dollars in thousands)

    

 

2015

    

2014

    

 

 

 

 

 

 

 

 

 

Outstanding balance at end of year

 

 

$
395,433

 

$
356,108

 

Weighted average interest rate at year end

 

 

 
0.02

%  

 
0.04

%  

 

 

 

 

 

 

 

 

 

Fair value of securities pledged:

 

 

 

 

 

 

 

 

U.S. Treasury securities and U.S. Government agencies

 

 

$
244,707

 

$
121,378

 

Mortgage backed securities - residential

 

 

 
82,666

 

 
105,144

 

Collateralized mortgage obligations

 

 

 
130,821

 

 
151,956

 

Total securities pledged

 

 

$
458,194

 

$
378,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,  (dollars in thousands)

        

 

 

2015

    

2014

    

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average outstanding balance during the year

 

 

 

$
379,477

 

$
296,196

 

$
170,386

 

Average interest rate during the year

 

 

 

 
0.02

%  

 
0.04

%  

 
0.04

%  

Maximum outstanding at any month end during the year

 

 

 

$
442,981

 

$
408,891

 

$
242,721