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Repurchase Agreements
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Repurchase Agreements

8. 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 $15.9 million at March 31, 2024 and $12.7 million at December 31, 2023, which were secured by $23.7 million and $23.7 million of the Company’s investment portfolio at the same dates, respectively.

 

 

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

 

                     
   As of March 31, 2024 
(dollars in thousands)  Overnight and Continuous   Up to 30 days   30-90 days   Greater than 90 days   Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $15,895   $-   $-   $-   $15,895 
Total  $15,895   $-   $-   $-   $15,895 
                          

 

                          
    As of December 31, 2023 
(dollars in thousands)   Overnight and Continuous    Up to 30 days    30-90 days    Greater than 90 days    Total 
Repurchase agreements:                         
U.S. federal treasury obligations  $12,714   $-   $-   $-   $12,714 
Total  $12,714   $-   $-   $-   $12,714 

 

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.