SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2022

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

10.SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of

currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control.

As of December 31, 2022 and 2021, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows:

December 31, (dollars in thousands)	2022			2021
Outstanding balance at end of period	$	216,956		$	290,967
Weighted average interest rate at end of period		0.41	%		0.04	%
Fair value of securities pledged:
U.S. Treasury securities and U.S. Government agencies	$	254,296		$	108,813
Mortgage-backed securities - residential		—			167,561
Collateralized mortgage obligations		—			33,441
Total securities pledged	$	254,296		$	309,815

Additional information regarding securities sold under agreements to repurchase for the years ended December 31, 2022, 2021, and 2020 follows:

Years Ended December 31, (in thousands)	2022			2021			2020
Average outstanding balance during the period	$	265,188		$	231,430		$	204,797
Average interest rate during the period		0.15	%		0.03	%		0.09	%
Maximum outstanding at any month end during the period	$	303,315		$	432,047		$	295,698