Note 12: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings

6 Months Ended

Jun. 30, 2020

Notes

Note 12: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings

NOTE 12: SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS

		June 30, 2020		December 31, 2019
		(In Thousands)
Notes payable – Community Development Equity Funds	$	1,279	$	1,267
Other interest-bearing liabilities		-		30,890
Overnight borrowings from the Federal Home Loan Bank		-		196,000
Securities sold under reverse repurchase agreements		191,624		84,167
	$	192,903	$	312,324

The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements).  Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of financial condition.  The dollar amount of securities underlying the agreements remains in the asset accounts.  Securities underlying the agreements are being held by the Bank during the agreement period.  All agreements are written on a term of one month or less.

At December 31, 2019, other interest-bearing liabilities consisted of cash collateral held by the Company to satisfy minimum collateral posting thresholds with its derivative dealer counterparties representing the termination value of derivatives, which at such time were in a net asset position.  Under the collateral agreements between the parties, either party may choose to provide cash or securities to satisfy its collateral requirements. Effective March 2, 2020, the Company and its swap counterparty mutually agreed to terminate the Company’s interest rate swap eliminating the cash collateral held.  For additional information, see “Cash Flow Hedges” in Note 16.

The following table represents the Company’s securities sold under reverse repurchase agreements, by collateral type and remaining contractual maturity.

		June 30, 2020		December 31, 2019
		Overnight and		Overnight and
		Continuous		Continuous
	(In Thousands)
Mortgage-backed securities – GNMA, FNMA, FHLMC	$	191,624	$	84,167