SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

9 Months Ended

Sep. 30, 2015

Disclosure of Repurchase Agreements [Abstract]

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

A summary of securities sold under agreements to repurchase as of September 30, 2015 and December 31, 2014 is as follows (in thousands):

	September 30, 2015
	Overnight and Continuous		Up to 1 Year		1 - 3 Years		3+ Years		Total
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	12,303	$	—	$	11,183	$	—	$	23,486
Mortgage-backed securities, residential	8,546		—		13,020		—		21,566
Total	$	20,849	$	—	$	24,203	$	—	45,052
Excess collateral held									(14,694		)
Gross amount of recognized liabilities for repurchase agreements									$	30,358

	December 31, 2014
	Overnight and Continuous		Up to 1 Year		1 - 3 Years		3+ Years		Total
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	21,056	$	—	$	6,990	$	8,595	$	36,641
Mortgage-backed securities, residential	669		—		3,507		4,174		8,350
Collateralized mortgage obligations	—		—		48		—		48
Total	$	21,725	$	—	$	10,545	$	12,769	45,039
Excess collateral held									(15,387		)
Gross amount of recognized liabilities for repurchase agreements									$	29,652

The Corporation enters into sales of securities under agreements to repurchase and the amounts received under these agreements represent borrowings and are reflected as a liability in the consolidated balance sheets.  The securities underlying these agreements are included in investment securities in the consolidated balance sheets.

The Corporation has no control over the market value of the securities which fluctuate due to market conditions, however, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price.  The Corporation manages this risk by utilizing highly marketable and easily priced securities, monitoring these securities for significant changes in market valuation routinely, and maintaining an unpledged securities portfolio believed to be sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.