10.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, 2019 and 2018, 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)	2019			2018

Outstanding balance at end of period	$	167,617		$	182,990
Weighted average interest rate at end of period		0.32	%		0.83	%

Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	70,015		$	110,854
Mortgage backed securities - residential		134,265			84,657
Collateralized mortgage obligations		17,030			10,136
Total securities pledged	$	221,310		$	205,647

Additional information regarding securities sold under agreements to repurchase for the years ended December 31, 2019, 2018 and 2017 follows:


Years Ended December 31, (in thousands)	2019			2018			2017

Average outstanding balance during the period	$	236,883		$	225,145		$	219,515
Average interest rate during the period		0.51	%		0.50	%		0.23	%
Maximum outstanding at any month end during the period	$	276,927		$	260,147		$	293,944