25. Balance Sheet Offsetting

Certain financial instruments, including resale and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The following tables present the assets and liabilities subject to enforceable master netting arrangements, repurchase agreements, or similar agreements with offsetting rights (in thousands).


							Gross Amounts Not Offset in
					Net Amounts		the Balance Sheet
	Gross Amounts		Gross Amounts		of Assets				Cash
	of Recognized		Offset in the		Presented in the		Financial		Collateral		Net
	Assets		Balance Sheet		Balance Sheet		Instruments		Pledged		Amount
December 31, 2015
Securities borrowed:
Institutional counterparties	$	1,307,741	$	—	$	1,307,741	$	(1,307,741)	$	—	$	—

Interest rate swaps and swaptions:
Institutional counterparties		1,526		(393)		1,133		—		—		1,133

Reverse repurchase agreements:
Institutional counterparties		105,660		—		105,660		(105,412)		—		248

Forward MBS derivatives:
Institutional counterparties		1,377		—		1,377		(1,377)		—		—
	$	1,416,304	$	(393)	$	1,415,911	$	(1,414,530)	$	—	$	1,381
December 31, 2014
Securities borrowed:
Institutional counterparties	$	152,899	$	—	$	152,899	$	(152,899)	$	—	$	—

Interest rate swaps and swaptions:
Institutional counterparties		425		—		425		—		—		425

Forward MBS derivatives:
Institutional counterparties		41		—		41		—		—		41
	$	153,365	$	—	$	153,365	$	(152,899)	$	—	$	466


							Gross Amounts Not Offset in
					Net Amounts		the Balance Sheet
	Gross Amounts		Gross Amounts		of Liabilities				Cash
	of Recognized		Offset in the		Presented in the		Financial		Collateral		Net
	Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Amount
December 31, 2015
Securities loaned:
Institutional counterparties	$	1,235,466	$	—	$	1,235,466	$	(1,235,466)	$	—	$	—

Interest rate swaps and swaptions:
Institutional counterparties		643		—		643		(2,519)		—		(1,876)

Repurchase agreements:
Institutional counterparties		69,748		—		69,748		(69,748)		—		—
Customer counterparties		148,000		—		148,000		(148,000)		—		—

Forward MBS derivatives:
Institutional counterparties		4,385		(1,769)		2,616		(1,420)		—		1,196
	$	1,458,242	$	(1,769)	$	1,456,473	$	(1,457,153)	$	—	$	(680)
December 31, 2014
Securities loaned:
Institutional counterparties	$	117,822	$	—	$	117,822	$	(117,822)	$	—	$	—

Repurchase agreements:
Customer counterparties		136,396		—		136,396		(136,396)		—		—

Forward MBS derivatives:
Institutional counterparties		12,829		(223)		12,606		—		(6,137)		6,469
	$	267,047	$	(223)	$	266,824	$	(254,218)	$	(6,137)	$	6,469

Secured Borrowing Arrangements

Secured Borrowings (Repurchase Agreements) — The Company participates in transactions involving securities sold under repurchase agreements, which are secured borrowings and generally mature within one to thirty days from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transactions. The Company may be required to provide additional collateral based on the fair value of the underlying securities, which is monitored on a daily basis.

Securities Lending Activities — The Company’s securities lending activities include lending securities for other broker-dealers, lending institutions and its own clearing and retail operations. These activities involve lending securities to other broker-dealers to cover short sales, to complete transactions in which there has been a failure to deliver securities by the required settlement date and as a conduit for financing activities.

When lending securities, the Company receives cash or similar collateral and generally pays interest (based on the amount of cash deposited) to the other party to the transaction. Securities lending transactions are executed pursuant to written agreements with counterparties that generally require securities loaned to be marked-to-market on a daily basis. The Company receives collateral in the form of cash in an amount generally in excess of the fair value of securities loaned. The Company monitors the fair value of securities loaned on a daily basis, with additional collateral obtained or refunded, as necessary. Collateral adjustments are made on a daily basis through the facilities of various clearinghouses. The Company is a principal in these securities lending transactions and is liable for losses in the event of a failure of any other party to honor its contractual obligation. Management sets credit limits with each counterparty and reviews these limits regularly to monitor the risk level with each counterparty. The Company is subject to credit risk through its securities lending activities if securities prices decline rapidly because the value of the Company’s collateral could fall below the amount of the indebtedness it secures. In rapidly appreciating markets, credit risk increases due to short positions. The Company’s securities lending business subjects the Company to credit risk if a counterparty fails to perform or if collateral securing its obligations is insufficient. In securities transactions, the Company is subject to credit risk during the period between the execution of a trade and the settlement by the customer.

The following tables present the remaining contractual maturities of repurchase agreement and securities lending transactions accounted for as secured borrowings (in thousands). The Company had no repurchase-to-maturity transactions outstanding at both December 31, 2015 or 2014.


	Remaining Contractual Maturities
	Overnight and						Greater Than
December 31, 2015	Continuous		Up to 30 Days		30-90 Days		90 Days		Total
Repurchase agreement transactions:
U.S. Treasury and agency securities	$	201,090	$	16,658	$	—	$	—	$	217,748

Securities lending transactions:
U.S. Treasury and agency securities		12,646		—		—		—		12,646
Corporate securities		5,993		—		—		—		5,993
Equity securities		1,216,827		—		—		—		1,216,827
Total	$	1,436,556	$	16,658	$	—	$	—	$	1,453,214

Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above									$	1,453,214
Amount related to agreements not included in offsetting disclosure above									$	—

	Remaining Contractual Maturities
	Overnight and						Greater Than
December 31, 2014	Continuous		Up to 30 Days		30-90 Days		90 Days		Total
Repurchase agreement transactions:
U.S. Treasury and agency securities	$	136,396	$	—	$	—	$	—	$	136,396

Securities lending transactions:
U.S. Treasury and agency securities		9,171		—		—		—		9,171
Corporate securities		200		—		—		—		200
Equity securities		108,451		—		—		—		108,451
Total	$	254,218	$	—	$	—	$	—	$	254,218

Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above									$	254,218
Amount related to agreements not included in offsetting disclosure above									$	—