Note 9 - Borrowed Funds

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

9. Borrowed Funds

Securities Sold Under Agreements to Repurchase.

Securities sold under agreements to repurchase were $350 million with a weighted average rate of 4.06% as of September 30, 2016, compared to $400 million with a weighted average rate of 3.89% as of December 31, 2015. As of September 30, 2016, four floating-to-fixed rate agreements totaling $200 million with a weighted average rate of 5.0% and final maturity in January 2017 had initial floating rates for one year, with floating rates of the three-month LIBOR rate minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.89% to 5.07%. As of September 30, 2016, three fixed rate non-callable securities sold under agreements to repurchase totaled $150 million with a weighted average rate of 2.81%, compared to four fixed rate non-callable securities sold under agreements to repurchase totaling $200 million with a weighted average rate of 2.78% as of December 31, 2015. Final maturity for the three fixed rate non-callable securities sold under agreements to repurchase was $50.0 million in July 2017, $50.0 million in June 2018, and $50.0 million in July 2018.

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities and mortgage-backed securities with a fair value of $383 million as of September 30, 2016, and $430 million as of December 31, 2015.

Borrowing from the FHLB.

As of September 30, 2016, over-night borrowings from the FHLB were $300 million at a rate of 0.38% compared to $250 million at a rate of 0.27% as of December 31, 2015. As of September 30, 2016, the advances from the FHLB were $400 million at a rate of 0.47% compared to $25 million at a rate of 1.13% as of December 31, 2015. As of September 30, 2016, FHLB advances of $375 million will mature in October 2016 and $25 million will mature in March 2018.