SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS

3 Months Ended

Mar. 31, 2024

SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS

SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS

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

	March 31,		December 31,
	2024		2023
	(In Thousands)
Notes payable – Community Development Equity Funds	$	1,347	$	1,610
Securities sold under reverse repurchase agreements		72,778		70,843
Short-term borrowings from Federal Reserve Bank		180,000		—
Overnight borrowings from the Federal Home Loan Bank		—		251,000
	$	254,125	$	323,453

Borrowings from the Federal Reserve Bank at March 31, 2024, were part of the Federal Reserve Bank’s Bank Term Funding Program (BTFP). The BTFP borrowing, which matures in January 2025 and has a fixed interest rate of 4.83%, may be repaid in full or in part without penalty prior to its stated maturity date. The line is secured primarily by the Bank’s held-to-maturity investment securities, with assets pledged totaling approximately $193 million as of March 31, 2024.

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.

The following table reflects the Company’s securities sold under reverse repurchase agreements, by collateral type. These securities contractually mature daily.

	March 31, 2024		December 31, 2023
	(In Thousands)
Mortgage-backed securities – GNMA, FNMA, FHLMC	$	72,778	$	70,843