Balance Sheet Offsetting

Derivative financial instruments may be eligible for offset in the consolidated balance sheets, such as those subject to enforceable master netting arrangements or a similar agreement. Under these agreements, the Company has the right to net settle multiple contracts with the same counterparty. The Company offers an interest rate swap product to qualified customers, which are then paired with derivative contracts the Company enters into with a counterparty bank. While derivative contracts entered into with counterparty banks may be subject to enforceable master netting agreements, derivative contracts with customers may not be subject to enforceable master netting arrangements.

Financial instruments that are eligible for offset in the consolidated statements of financial condition as of March 31, 2018 are presented in the table below:



							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments	Cash Collateral (1)		Net Amount
	(dollars in thousands)
March 31, 2018
Financial assets:
Derivatives not designated as hedging instruments	$	2,717	$	—	$	2,717	—	$	—	$	2,717
Total	$	2,717	$	—	$	2,717	—	$	—	$	2,717

Financial liabilities:
Derivatives not designated as hedging instruments	$	2,717	—		$	2,717	—	—		$	2,717
Total	$	2,717	—		$	2,717	—	—		$	2,717

(1) Represents cash collateral held with counterparty bank.

Financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2017 are presented in the table below:



								Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts Recognized in the Consolidated Balance Sheets		Gross Amounts Offset in the Consolidated Balance Sheets			Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments	Cash Collateral (1)		Net Amount
	(dollars in thousands)
December 31, 2017
Financial assets:
Derivatives not designated as hedging instruments	$	1,833	$	(698	)	$	1,135	—	$	—	$	1,135
Total	$	1,833	$	(698	)	$	1,135	—	$	—	$	1,135

Financial liabilities:
Derivatives not designated as hedging instruments	$	1,135	—			$	1,135	—	—		$	1,135
Total	$	1,135	—			$	1,135	—	—		$	1,135

(1) Represents cash collateral held with counterparty bank.