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Repurchase Agreements
 12 Months Ended
Dec. 31, 2022
Repurchase Agreements

(15) 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 $29.4 million at December 31, 2022, and $7.4 million at December 31, 2021, which were secured by $38.4 million and $9.2 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:

 

(Dollars in thousands)  Years ended December 31, 
   2022   2021 
Average daily balance during the year  $13,239   $5,915 
Average interest rate during the year   1.11%   0.19%
Maximum month-end balance during the year  $33,930   $8,250 
Weighted average interest rate at year-end   1.70%   0.19%

 

                          
   As of December 31, 2022 
   Overnight and
Continuous		   Up to 30 days   30-90 days   Greater
than 90 days		   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $25,973   $      -   $      -   $      -   $25,973 
U.S. federal agency obligations   1,236    -    -    -    1,236 
Agency mortgage-backed securities   2,193    -    -    -    2,193 
Total  $29,402   $-   $-   $-   $29,402 

 

                          
   As of December 31, 2021 
   Overnight and
Continuous		   Up to 30 days   30-90 days   Greater
than 90 days		   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $325   $      -   $      -   $      -   $325 
U.S. federal agency obligations   3,008    -    -    -    3,008 
Agency mortgage-backed securities   4,070    -    -    -    4,070 
Total  $7,403   $-   $-   $-   $7,403 

 

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.