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Securities Purchased under Resale Agreements and Sold under Repurchase Agreements
 9 Months Ended
Sep. 30, 2020
RESALE AND REPURCHASE AGREEMENTS [Abstract]  
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements Securities Purchased under Resale Agreements and Sold under Repurchase Agreements
Resale Agreements

Gross resale agreements were $1.21 billion and $1.11 billion as of September 30, 2020 and December 31, 2019, respectively. The weighted-average yields were 1.72% and 2.59% for the three months ended September 30, 2020 and 2019, respectively, and 2.09% and 2.71% for the nine months ended September 30, 2020 and 2019, respectively.

Repurchase Agreements

As of September 30, 2020, the collateral for the repurchase agreements were comprised of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, and U.S. Treasury securities. Gross repurchase agreements were $348.1 million and $450.0 million as of September 30, 2020 and December 31, 2019, respectively. The weighted-average interest rates were 2.70% and 4.68% for the three months ended September 30, 2020 and 2019, respectively, and 3.48% and 4.87% for the nine months ended September 30, 2020 and 2019, respectively. During the second quarter of 2020, the Company recorded $8.7 million of charges related to the extinguishment of $150.0 million of repurchase agreements. In comparison, there were no extinguishment charges recorded in 2019. As of September 30, 2020, $48.1 million and $300.0 million of the repurchase agreements will mature in 2020 and 2023, respectively.

Balance Sheet Offsetting

The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. Collateral received includes securities that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Collateral received or pledged in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and is usually delivered to and held by the third-party trustees. The collateral amounts received/pledged are limited for presentation purposes to the related recognized asset/liability balance for each counterparty, and accordingly, do not include excess collateral received/pledged.

The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of September 30, 2020 and December 31, 2019:
($ in thousands)September 30, 2020
Gross
Amounts
of Recognized
Assets		Gross Amounts
Offset on the
Consolidated
Balance Sheet		Net Amounts of
Assets Presented
on the Consolidated
Balance Sheet		Gross Amounts Not Offset on the
Consolidated Balance Sheet
AssetsNet
Amount
Collateral Received
Resale agreements$1,210,000 $— $1,210,000 $(1,204,933)
(1)
$5,067 
Gross
Amounts
of Recognized
Liabilities		Gross Amounts
Offset on the
Consolidated
Balance Sheet		Net Amounts of
Liabilities Presented
on the Consolidated
Balance Sheet		Gross Amounts Not Offset on the
Consolidated Balance Sheet
LiabilitiesNet
Amount
Collateral Pledged
Repurchase agreements$348,063 $— $348,063 $(330,600)
(2)
$17,463 
($ in thousands)December 31, 2019
Gross
Amounts
of Recognized
Assets		Gross Amounts
Offset on the
Consolidated
Balance Sheet		Net Amounts of
Assets Presented
on the Consolidated
Balance Sheet		Gross Amounts Not Offset on the
Consolidated Balance Sheet
AssetsNet
Amount
Collateral Received
Resale agreements$1,110,000 $(250,000)$860,000 $(856,058)
(1)
$3,942 
Gross
Amounts
of Recognized
Liabilities		Gross Amounts
Offset on the
Consolidated
Balance Sheet		Net Amounts of
Liabilities Presented
on the Consolidated
Balance Sheet		Gross Amounts Not Offset on the
Consolidated Balance Sheet
LiabilitiesNet
Amount
Collateral Pledged
Repurchase agreements$450,000 $(250,000)$200,000 $(200,000)
(2)
$— 
(1)Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
(2)Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives. Refer to Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.