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Short-term Borrowings
6 Months Ended
Jun. 30, 2019
Short-term Borrowings

9. Short-term Borrowings

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

June 30,

December 31,

 

    

2019

    

2018

 

Federal funds purchased

$

124,050

$

100,100

Securities sold under agreements to repurchase

 

508,843

 

576,707

Federal Home Loan Bank

 

475,000

 

200,000

Short-term bank loans

 

231,000

 

189,000

$

1,338,893

$

1,065,807

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 other 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).

    

Six Months Ended June 30,

2019

2018

 

Average balance during the period

$

621,268

$

721,167

Average interest rate during the period

 

2.54

%  

1.63

%

June 30,

December 31,

   

2019

    

2018

Average interest rate at end of period

 

2.57

%  

2.43

%

Securities underlying the agreements at end of period:

Carrying value

$

516,067

$

587,609

Estimated fair value

$

554,160

$

618,231

Federal Home Loan Bank (“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. Other information regarding FHLB short-term borrowings is shown in the following tables (dollars in thousands).

Six Months Ended June 30,

2019

2018

Average balance during the period

$

159,945

$

117,956

Average interest rate during the period

2.47

%

1.91

%

June 30,

December 31,

2019

2018

Average interest rate at end of period

2.32

%

2.65

%

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 June 30, 2019 and December 31, 2018 was 3.28% and 3.35%, respectively.