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

9 Months Ended

Sep. 30, 2022

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

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

6. 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.

As of September 30, 2022 and December 31, 2021, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase and other short-term borrowings follows:

(dollars in thousands)	September 30, 2022			December 31, 2021
Outstanding balance at end of period	$	209,376		$	290,967
Weighted average interest rate at end of period		0.33	%		0.04	%
Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	230,798		$	108,813
Mortgage backed securities - residential		23,208			167,561
Collateralized mortgage obligations		—			33,441
Total securities pledged	$	254,006		$	309,815

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands)	2022			2021			2022			2021
Average outstanding balance during the period	$	220,149		$	242,867		$	271,276		$	201,992
Average interest rate during the period		0.17	%		0.03	%		0.08	%		0.02	%
Maximum outstanding at any month end during the period	$	209,376		$	307,358		$	303,315		$	307,358