SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

6 Months Ended

Jun. 30, 2016

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 June 30, 2016 and December 31, 2015 is as follows (in thousands):

	June 30, 2016
	Overnight and Continuous			Up to 1 Year			1 - 3 Years			3+ Years		Total
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	—		$	1,789		$	1,507		$	—	$	3,296
Mortgage-backed securities, residential	17,119			11,247			11,205			—		39,571
Total	17,119			13,036			12,712			$	—	42,867
Excess collateral held	(8,341		)	(3,036		)	(2,712		)	—		(14,089		)
Gross amount of recognized liabilities for repurchase agreements	$	8,778		$	10,000		$	10,000		$	—	$	28,778

	December 31, 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	$	12,163		$	1,781		$	9,323		$	—	$	23,267
Mortgage-backed securities, residential	8,280			9,174			3,135			—		20,589
Total	20,443			10,955			12,458			—		43,856
Excess collateral held	(11,990		)	(955		)	(2,458		)	—		(15,403		)
Gross amount of recognized liabilities for repurchase agreements	$	8,453		$	10,000		$	10,000		$	—	$	28,453

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.