Note 9.  Federal Funds Purchased and Securities Sold Under Agreements to Repurchase

 

Federal funds purchased are short-term borrowings that generally mature between one and ninety days. The Company had no federal funds purchased at December 31, 2014 and 2013; however, during 2014 the Company purchased federal funds to test operational availability to access funds if needed. Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature either daily or within one year from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by the Company’s safekeeping agent. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The following table sets forth the distribution of securities sold under agreements to repurchase and weighted average interest rates:

 

 

 

(1) The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding.