Short-term Borrowings

12 Months Ended

Dec. 31, 2015

Short-term Borrowings

Short-term Borrowings

12. Short-term Borrowings

Short-term borrowings are summarized as follows (in thousands).

	December 31,
	2015		2014
Federal funds purchased	$	58,925	$	128,100
Securities sold under agreements to repurchase		217,748		136,396
Federal Home Loan Bank		600,000		375,000
Short-term bank loans		70,700		123,200
	$	947,373	$	762,696

Federal funds purchased and securities sold under agreements to repurchase generally mature daily, on demand, or on some other short-term basis. The Bank and the Hilltop Broker-Dealers execute transactions to sell securities under agreements to repurchase with both customers and broker-dealers. Securities involved in these transactions are held by the Bank, the Hilltop Broker-Dealers or a third-party dealer.

Information concerning federal funds purchased and securities sold under agreements to repurchase is shown in the following tables (dollars in thousands).

	Year Ended December 31,
	2015			2014			2013
Average balance during the year	$	315,904		$	319,806		$	281,067
Average interest rate during the year		0.33	%		0.17	%		0.19	%
Maximum month-end balance during the year		514,776			535,232			415,730

	December 31,
	2015			2014
Average interest rate at end of year		0.26	%		0.15	%
Securities underlying the agreements at end of year:
Carrying value	$	250,981		$	166,734
Estimated fair value	$	250,045		$	163,852

FHLB short-term borrowings mature over terms not exceeding 365 days and are collateralized by FHLB Dallas stock, nonspecified real estate loans and certain specific commercial real estate loans.  At December 31, 2015, the Bank had available collateral of $1.5 billion, substantially all of which was blanket collateral. Other information regarding FHLB short-term borrowings is shown in the following tables (dollars in thousands).

	Year Ended December 31,
	2015			2014			2013
Average balance during the year	$	294,959		$	261,550		$	106,415
Average interest rate during the year		0.27	%		0.18	%		0.13	%
Maximum month-end balance during the year	$	600,000		$	575,000		$	525,000

	December 31,
	2015		2014
Average interest rate at end of year	0.35	%	0.16	%

The Hilltop Broker-Dealers use short-term bank loans periodically to finance securities owned, margin loans to customers and correspondents, and underwriting activities. Interest on the borrowings varies with the federal funds rate. The weighted average interest rate on the borrowings at December 31, 2015 and 2014 was 1.26% and 1.07%, respectively.