12. SECURED FINANCING

The Company had outstanding $62.5 billion and $65.2 billion of repurchase agreements with weighted average borrowing rates of 1.91% and 1.64%, after giving effect to the Company’s interest rate swaps used to hedge cost of funds, and weighted average remaining maturities of 88 days and 96 days as of June 30, 2017 and December 31, 2016, respectively.

At June 30, 2017 and December 31, 2016, the repurchase agreements had the following remaining maturities, collateral types and weighted average rates:

	June 30, 2017
	Agency Mortgage- backed Securities		CRTs		Non-Agency Mortgage-backed Securities		Commercial Loans		Commercial Mortgage- backed Securities		Total Repurchase Agreements		Weighted Average Rate
	(dollars in thousands)
1 day	$	-	$	-	$	-	$	-	$	-	$	-		-
2 to 29 days		25,866,226		306,812		434,128		-		19,409		26,626,575		1.40	%
30 to 59 days		7,930,744		49,657		136,613		-		6,032		8,123,046		1.33	%
60 to 89 days		9,111,191		36,014		129,094		-		-		9,276,299		1.33	%
90 to 119 days		3,096,008		-		4,959		-		-		3,100,967		1.20	%
Over 120 days⁽¹⁾		14,975,905		-		-		394,608		-		15,370,513		1.45	%
Total	$	60,980,074	$	392,483	$	704,794	$	394,608	$	25,441	$	62,497,400		1.38	%

	December 31, 2016
	Agency Mortgage- backed Securities		CRTs		Non-Agency Mortgage-backed Securities		Commercial Loans		Total Repurchase Agreements		Weighted Average Rate
	(dollars in thousands)
1 day	$	-	$	-	$	-	$	-	$	-		-
2 to 29 days		29,657,705		358,972		377,366		-		30,394,043		0.87	%
30 to 59 days		11,373,300		80,139		241,360		-		11,694,799		1.10	%
60 to 89 days		6,966,827		13,914		101,491		-		7,082,232		1.14	%
90 to 119 days		2,063,561		-		-		-		2,063,561		0.89	%
Over 120 days⁽¹⁾		13,646,308		-		-		334,867		13,981,175		1.47	%
Total	$	63,707,701	$	453,025	$	720,217	$	334,867	$	65,215,810		1.07	%

⁽¹⁾Approximately 5% and 7% of the total repurchase agreements had a remaining maturity over 1 year as of June 30, 2017 and December 31, 2016, respectively.

Repurchase agreements and reverse repurchase agreements with the same counterparty and the same maturity are presented net in the Consolidated Statements of Financial Condition when the terms of the agreements permit netting. The following table summarizes the gross amounts of reverse repurchase agreements and repurchase agreements, amounts offset in accordance with netting arrangements and net amounts of repurchase agreements and reverse repurchase agreements as presented in the Consolidated Statements of Financial Condition as of June 30, 2017 and December 31, 2016. Refer to the “Derivative Instruments” Note for information related to the effect of netting arrangements on the Company’s derivative instruments.

	June 30, 2017				December 31, 2016
	Reverse Repurchase Agreements		Repurchase Agreements		Reverse Repurchase Agreements			Repurchase Agreements
	(dollars in thousands)
Gross Amounts	$	-	$	62,497,400	$	400,000		$	65,615,810
Amounts Offset		-		-		(400,000	)		(400,000	)
Netted Amounts	$	-	$	62,497,400	$	-		$	65,215,810

The Company also finances a portion of its financial assets with advances from the Federal Home Loan Bank of Des Moines (“FHLB Des Moines”). Borrowings from FHLB Des Moines are reported in Other secured financing in the Company’s Consolidated Statements of Financial Condition. As of June 30, 2017, $3.5 billion of the advances from the FHLB Des Moines extends beyond three years and $90.0 million matures between one to three years. As of December 31, 2016, $3.6 billion matured beyond three years. The weighted average rate of the advances from the FHLB Des Moines was 1.30% and 0.76% at June 30, 2017 and December 31, 2016, respectively.

Financial instruments pledged as collateral under secured financing arrangements and interest rate swaps had an estimated fair value and accrued interest of $70.7 billion and $212.0 million, respectively, at June 30, 2017 and $74.3 billion and $229.2 million, respectively, at December 31, 2016.