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

9 Months Ended

Sep. 30, 2017

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

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

7. 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 September 30, 2017 and December 31, 2016, all securities sold under agreements to repurchase had overnight maturities. Information regarding securities sold under agreements to repurchase follows:

(dollars in thousands)	September 30, 2017			December 31, 2016
Outstanding balance at end of period	$	173,311		$	173,473
Weighted average interest rate at end of period		0.37	%		0.05	%
Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	74,655		$	116,025
Mortgage backed securities - residential		58,437			45,894
Collateralized mortgage obligations		55,551			41,155
Total securities pledged	$	188,643		$	203,074

	Three Months Ended							Nine Months Ended
	September 30,						September 30,
(dollars in thousands)	2017			2016			2017			2016
Average outstanding balance during the period	$	208,160		$	215,343		$	202,018		$	296,574
Average interest rate during the period		0.31	%		0.02	%		0.22	%		0.02	%
Maximum outstanding at any month end during the period	$	173,311		$	169,691		$	183,709		$	367,373