Securities Sold Under Agreements to Repurchase

12 Months Ended

Jun. 30, 2020

Securities Sold Under Agreements to Repurchase

Securities Sold Under Agreements to Repurchase

NOTE 7:  Securities Sold Under Agreements to Repurchase

The Company had no securities sold under agreements to repurchase as of June 30, 2020. The carrying value of securities sold under agreement to repurchase at June 30, 2019 amounted to $4.4 million. The securities underlying the agreements at June 30, 2019 consisted of marketable securities, including $5.8 million of Mortgage-Backed Securities. 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)	2020			2019
Year-end balance	$	—		$	4,376
Average balance during the year		82			3,988
Maximum month-end balance during the year		—			4,703
Average interest during the year		0.03	%		0.90	%
Year-end interest rate		0.00	%		0.93	%