XML 37 R22.htm IDEA: XBRL DOCUMENT

Repurchase Agreements

12 Months Ended

Dec. 31, 2018

(13) Repurchase Agreements

The Company has overnight repurchase agreements with certain deposit customers whereby the Company uses investment securities as collateral for non-insured funds. These balances are accounted for as collateralized financing and included in other borrowings on the balance sheet.

Repurchase agreements are comprised of non-insured customer funds, totaling $15.2 million at December 31, 2018, and $13.5 million at December 31, 2017, which were secured by $18.6 million and $16.8 million of the Bank’s investment portfolio at the same dates, respectively. The following is a summary of the balances and collateral of the Company’s repurchase agreements:

	Years ended December 31,
(Dollars in thousands)	2018			2017
Average daily balance during the year	$	12,388		$	12,819
Average interest rate during the year		0.87	%		0.26	%
Maximum month-end balance during the year	$	15,246		$	16,801
Weighted average interest rate at year-end		1.00	%		0.70	%

	As of December 31, 2018
	Overnight and						Greater
	Continuous		Up to 30 days		30-90 days		than 90 days		Total
Repurchase agreements:
U.S. federal treasury obligations	$	416	$	-	$	-	$	-	$	416
U.S. federal agency obligations		5,626		-		-		-		5,626
Agency mortgage-backed securities		9,204		-		-		-		9,204
Total	$	15,246	$	-	$	-	$	-	$	15,246

	As of December 31, 2017
	Overnight and		Up to				Greater
	Continuous		30 days		30-90 days		than 90 days		Total
Repurchase agreements:
U.S. federal agency obligations	$	5,147	$	-	$	-	$	-	$	5,147
Agency mortgage-backed securities		8,362		-		-		-		8,362
Total	$	13,509	$	-	$	-	$	-	$	13,509

The investment securities are held by a third party financial institution in the customer’s custodial account. The Company is required to maintain adequate collateral for each repurchase agreement. Changes in the fair value of the investment securities impact the amount of collateral required. If the Company were to default, the investment securities would be used to settle the repurchase agreement with the deposit customer.