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Repurchase Agreements

6 Months Ended

Jun. 30, 2020

6. 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 $10.2 million at June 30, 2020, and $17.5 million at December 31, 2019, which were secured by $13.8 million and $20.1 million of the Company’s investment portfolio at the same dates, respectively.

The following is a summary of the balances of and collateral for the Company’s repurchase agreements:

Schedule of Repurchase Agreements

	As of June 30, 2020
	Overnight and Continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
Repurchase agreements:
U.S. federal agency obligations	$	1,145	$	-	$	-	$	-	$	1,145
Agency mortgage-backed securities		9,047		-		-		-		9,047
Total	$	10,192	$	-	$	-	$	-	$	10,192

		As of December 31, 2019
		Overnight and Continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
Repurchase agreements:
U.S. treasury obligations	$	789	$	-	$	-	$	-	$	789
U.S. federal agency obligations		1,978		-		-		-		1,978
Agency mortgage-backed securities		14,781		-		-		-		14,781
Total	$	17,548	$	-	$	-	$	-	$	17,548

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.