Balance Sheet Offsetting

3 Months Ended

Mar. 31, 2021

Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts. However, the Company does not offset fair value amounts recognized for derivative instruments. The Company nets the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. As of March 31, 2021 and December 31, 2020, it was determined that no additional collateral would have to be posted to immediately settle these instruments.

The following tables present the Company’s asset and liability positions that were eligible for offset and the potential effect of netting arrangements on its financial position, as of the dates indicated:


	As of March 31, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
Description							Financial Instruments		Collateral Pledged (Received)
	(In thousands)

Derivative Assets
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Customer-related positions:
Interest rate swaps	90,748		—		90,748		1,426		—		89,322
Risk participation agreements	391		—		391		—		—		391
Foreign currency exchange contracts – matched customer book	81		—		81		—		—		81
Foreign currency exchange contracts – foreign currency loan	18		—		18		—		—		18
	$	91,238	$	—	$	91,238	$	1,426	$	—	$	89,812
Derivative Liabilities
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Customer-related positions:
Interest rate swaps	33,620		—		33,620		1,426		32,194		—
Risk participation agreements	530		—		530		—		—		530
Foreign currency exchange contracts – matched customer book	61		—		61		—		—		61
Foreign currency exchange contracts – foreign currency loan	5		—		5		—		—		5
	$	34,216	$	—	$	34,216	$	1,426	$	32,194	$	596


	As of December 31, 2020
	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position				Net Amount
Description							Financial Instruments		Collateral Pledged (Received)
	(In thousands)
Derivative Assets
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Customer-related positions:
Interest rate swaps	141,822		—		141,822		48		—		141,774
Risk participation agreements	722		—		722		—		—		722
Foreign currency exchange contracts – matched customer book	90		—		90		—		(1)		89
Foreign currency exchange contracts – foreign currency loan	9		—		9		—		—		9
	$	142,643	$	—	$	142,643	$	48	$	(1)	$	142,594
Derivative Liabilities
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Customer-related positions:
Interest rate swaps	42,600		—		42,600		48		42,552		—
Risk participation agreements	1,230		—		1,230		—		—		1,230
Foreign currency exchange contracts – matched customer book	77		—		77		—		—		77
Foreign currency exchange contracts – foreign currency loan	69		—		69		—		—		69
	$	43,976	$	—	$	43,976	$	48	$	42,552	$	1,376