Balance Sheet Offsetting

12 Months Ended

Dec. 31, 2019


NOTE 23 – Balance Sheet Offsetting

The Chicago Mercantile Exchange (“CME”) legally characterizes variation margin payments for over-the-counter derivatives that clear as settlements rather than collateral. Accordingly, the Company’s accounting policies classify, for accounting and presentation purposes, variation margin payments deemed to be legal settlements as a single unit of account with the related derivative(s). At both December 31, 2019 and 2018, this presentation impacted one of the Company’s institutional counterparties. As such, People’s United has, subject to the corresponding enforceable master netting arrangement, netted the institutional counterparty’s CME derivative position and offset the counterparty’s variation margin payments in the Consolidated Statement of Condition as of both dates.

The following tables provide a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied) and, therefore, instances of overcollateralization are not presented. In the tables below, the Net Amount Presented of the derivative assets and liabilities can be reconciled to the fair value of the Company’s derivative financial instruments in Note 22. The Company’s derivative contracts with commercial customers and customer repurchase agreements are not subject to master netting arrangements and, therefore, have been excluded from the tables below.


	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset						Net Amount
As of December 31, 2019 (in millions)														Financial Instruments	Collateral
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	0.2	$	—	$	0.2	$	(0.2)	$	—	$	—
Counterparty B	0.1		—		0.1		(0.1)		—		—
Counterparty C	0.4		—		0.4		(0.4)		—		—
Counterparty D	0.1		—		0.1		(0.1)		—		—
Counterparty E	15.3		—		15.3		—		—		15.3
Other counterparties	1.1		—		1.1		(1.1)		—		—
Foreign exchange contracts	1.2		—		1.2		—		—		1.2
Total	$	18.4	$	—	$	18.4	$	(1.9)	$	—	$	16.5
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	2.3	$	—	$	2.3	$	(0.2)	$	(2.1)	$	—
Counterparty B	5.5		—		5.5		(0.1)		(5.4)		—
Counterparty C	28.2		—		28.2		(0.4)		(27.8)		—
Counterparty D	10.9		—		10.9		(0.1)		(10.8)		—
Counterparty E	—		—		—		—		—		—
Other counterparties	32.9		—		32.9		(1.1)		(31.8)		—
Foreign exchange contracts	1.8		—		1.8		—		—		1.8
Total	$	81.6	$	—	$	81.6	$	(1.9)	$	(77.9)	$	1.8


	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Gross Amounts Not Offset						Net Amount
As of December 31, 2018 (in millions)														Financial Instruments	Collateral
Financial assets:
Interest rate swaps/caps:
Counterparty A	$	3.1	$	—	$	3.1	$	(1.4)	$	(1.7)	$	—
Counterparty B	2.5		—		2.5		(2.5)		—		—
Counterparty C	4.8		—		4.8		(3.7)		(1.1)		—
Counterparty D	3.6		—		3.6		(2.7)		(0.1)		0.8
Counterparty E	—		—		—		—		—		—
Other counterparties	11.1		—		11.1		(5.4)		(5.7)		—
Foreign exchange contracts	0.9		—		0.9		—		—		0.9
Total	$	26.0	$	—	$	26.0	$	(15.7)	$	(8.6)	$	1.7
Financial liabilities:
Interest rate swaps/caps:
Counterparty A	$	1.4	$	—	$	1.4	$	(1.4)	$	—	$	—
Counterparty B	3.8		—		3.8		(2.5)		(1.2)		0.1
Counterparty C	3.7		—		3.7		(3.7)		—		—
Counterparty D	2.7		—		2.7		(2.7)		—		—
Counterparty E	16.0		—		16.0		—		—		16.0
Other counterparties	5.4		—		5.4		(5.4)		—		—
Foreign exchange contracts	0.8		—		0.8		—		—		0.8
Total	$	33.8	$	—	$	33.8	$	(15.7)	$	(1.2)	$	16.9

The following tables show the extent to which assets and liabilities exchanged under resale and repurchase agreements have been offset in the Consolidated Statements of Condition. These agreements: (i) are entered into simultaneously with the same financial institution counterparty; (ii) have the same principal amounts and inception/maturity dates; and (iii) are subject to a master netting arrangement that contains a conditional right of offset upon default. At December 31, 2019 and 2018, the Company posted as collateral marketable securities with fair values of $462.4 million and $461.3 million, respectively, and, in turn, accepted as collateral marketable securities with fair values of $457.5 million and $457.0 million, respectively.


As of December 31, 2019 (in millions)	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented
Total resale agreements	$	450.0	$	(450.0)	$	—
Total repurchase agreements	$	450.0	$	(450.0)	$	—


As of December 31, 2018 (in millions)	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented
Total resale agreements	$	450.0	$	(450.0)	$	—
Total repurchase agreements	$	450.0	$	(450.0)	$	—