Repurchase Agreements and Other Borrowings

9 Months Ended

Sep. 30, 2023

Repurchase Agreements And Other Borrowings [Abstract]

Repurchase Agreements and Other Borrowings

Note 6 -- Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $215.0 million at September 30, 2023, an decrease of $6.4 million from $221.4 million at December 31, 2022. All the transactions have overnight maturities with a weighted average rate of 2.93%.

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):

	September 30, 2023		December 31, 2022
US Treasury securities and obligations of U.S. government corporations and agencies	$	39,093	$	47,775
Mortgage-backed securities: GSE: residential		175,885		173,639
Total	$	214,978	$	221,414

FHLB borrowings, were $364.7 million and $464.7 million at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 the advances were as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	1.0	4.81%	November 10, 2023
	25,000,000	1.5	4.69%	May 10, 2024
	25,000,000	2.0	4.59%	November 8, 2024
	10,000,000	5.0	1.45%	December 31, 2024
	5,000,000	5.0	0.91%	March 10, 2025
	4,746,475	10.0	2.64%	December 23, 2025
	25,000,000	3.0	4.40%	June 15, 2026
	50,000,000	4.0	3.49%	December 8, 2027
	50,000,000	4.0	3.28%	December 8, 2027
	25,000,000	5.0	3.47%	March 13, 2028
	25,000,000	5.0	3.67%	June 15, 2028
	25,000,000	5.0	3.71%	June 29, 2028
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.95%	June 29, 2028
	5,000,000	10.0	1.15%	October 3, 2029
	5,000,000	10.0	1.12%	October 3, 2029
	10,000,000	10.0	1.39%	December 31, 2029