Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $132.4 million at March 31, 2018, a decrease of $23.0 million from $155.4 million at December 31, 2017. The decrease during the first three months of 2018 was primarily due to decreases in balances of customers due to changes in cash flow needs for their businesses. All of the transactions have overnight maturities with a weighted average rate of 0.14%.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value.

The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default.

Collateral pledged by class for repurchase agreements are as follows (in thousands):



	March 31, 2018		December 31, 2017
US Treasury securities and obligations of U.S. government corporations & agencies	$	87,378	$	100,895
Mortgage-backed securities: GSE: residential	45,057		54,493
Total	$	132,435	$	155,388

FHLB borrowings remained the same at $60 million at March 31, 2018 and December 31, 2017. At March 31, 2018 the advances were as follows:


•	$5 million advance with a 3-year maturity, at 1.30%, due May 7, 2018


•	$5 million advance with a 2-year maturity, at 0.99%, due June 21, 2018


•	$10 million advance with a 3-year maturity, at 1.42%, due November 5, 2018


•	$5 million advance with a 1.5-year maturity, at 1.49%, due December 28, 2018


•	$5 million advance with a 2-year maturity, at 1.56%, due June, 28, 2019


•	$5 million advance with a 2.5-year maturity, at 1.67%, due January 31, 2020


•	$5 million advance with a 3-year maturity, at 1.75%, due July 31, 2020


•	$5 million advance with a 6-year maturity, at 2.30%, due August 24, 2020


•	$5 million advance with a 3.5-year maturity, at 1.83%, due February 1, 2021


•	$5 million advance with a 7-year maturity, at 2.55%, due October 1, 2021


•	$5 million advance with a 8-year maturity, at 2.40%, due January 9, 2023