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Securities Sold under Agreements to Repurchase

12 Months Ended

Dec. 31, 2017

Securities Sold under Agreements to Repurchase [Abstract]

Securities Sold under Agreements to Repurchase [Text Block]

Note 10 – Securities Sold under Agreements to Repurchase

The Company has entered into agreements under which it has sold securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statement of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts and are delivered to and held as collateral by third party trustees.

Repurchase agreements are secured borrowings. The Company pledges investment securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows:

	2017			2016			2015
	(dollars in thousands)
Average daily balance during the year	$	6,781		$	15,000		$	22,890
Average interest rate during the year		5.95	%		5.95	%		5.92	%
Maximum month-end balance during the year	$	15,000		$	15,000		$	31,000
Weighted average interest rate during the year		5.95	%		5.95	%		5.92	%

The table below shows the remaining contractual maturity of repurchase agreements by fair value of collateral pledged:

	December 31, 2017
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and agency securities	$	-	$	-	$	-	$	-	$	-
Residential mortgage pass-through securities		-		-		-		-		-
Total Borrowings	$	-	$	-	$	-	$	-	$	-

Amounts related to repurchase agreements not included in offsetting disclosure in Note 13.									$	-

	December 31, 2016
	Remaining Contractual Maturity of the Agreements
	(dollars in thousands)
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and agency securities	$	-	$	-	$	-	$	-	$	-
Residential mortgage pass-through securities		-		-		-		16,826		16,826
Total Borrowings	$	-	$	-	$	-	$	16,826	$	16,826

Amounts related to agreements not included in offsetting disclosure in Note 13.									$	1,826

The fair value of securities pledged to secure repurchase agreements may decline. The Company manages this risk by having a policy to pledge securities valued at 8% above the gross outstanding balance of the repurchase agreement. Securities sold under agreements to repurchase are secured by securities with a carrying amount of $0 million and $16.8 million at year-end 2017 and 2016.