NOTE 7: Securities Sold Under Agreements to Repurchase

12 Months Ended

Jun. 30, 2019

Notes

NOTE 7: Securities Sold Under Agreements to Repurchase

NOTE 7:  Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase, which are classified as borrowings, generally mature within one to four days.  The carrying value of securities sold under agreement to repurchase amounted to $4.4 million and $3.3 million at June 30, 2019 and 2018, respectively. The securities underlying the agreements consist of marketable securities, including $0 and $1.2 million of U.S. Government and Federal Agency Obligations, and $5.8 million and $3.4 million of Mortgage-Backed Securities at June 30, 2019 and 2018, respectively. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained. 

The following table presents balance and interest rate information on the securities sold under agreements to repurchase.

	June 30,
(dollars in thousands)	2019	2018
Year-end balance	$                       4,376	$                       3,267
Average balance during the year	3,988	5,373
Maximum month-end balance during the year	4,703	9,902
Average interest during the year	0.90%	0.70%
Year-end interest rate	0.93%	0.86%