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

6 Months Ended

Jun. 30, 2024

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.

As of June 30, 2024 and December 31, 2023, 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)	June 30, 2024			December 31, 2023
Outstanding balance at end of period	$	72,598		$	97,618
Weighted average interest rate at end of period		0.67	%		0.50	%
Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	74,008		$	99,530
Total securities pledged	$	74,008		$	99,530

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(dollars in thousands)	2024			2023			2024			2023
Average outstanding balance during the period	$	88,326		$	117,852		$	95,459		$	160,146
Weighted average interest rate during the period		0.60	%		0.59	%		0.55	%		0.53	%
Maximum outstanding at any month end during the period	$	102,407		$	121,835		$	113,281		$	224,067