Balance Sheet Offsetting

9 Months Ended

Sep. 30, 2023

Balance Sheet OffsettingCertain 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 September 30, 2023 and December 31, 2022, 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 Consolidated Balance Sheet, as of the dates indicated:


	As of September 30, 2023
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet				Net Amount
Description							Financial Instruments		Collateral Pledged/ (Received)
	(In thousands)
Derivative Assets
Interest rate swaps	$	15	$	—	$	15	$	—	$	—	$	15
Customer-related positions:
Interest rate swaps	25,236		—		25,236		321		(16,900)		8,015
Risk participation agreements	47		—		47		—		—		47
Foreign currency exchange contracts – matched customer book	785		—		785		—		—		785
Foreign currency exchange contracts – foreign currency loan	261		—		261		—		—		261
	$	26,344	$	—	$	26,344	$	321	$	(16,900)	$	9,123
Derivative Liabilities
Interest rate swaps	$	367	$	—	$	367	$	—	$	367	$	—
Customer-related positions:
Interest rate swaps	92,409		—		92,409		321		—		92,088
Risk participation agreements	45		—		45		—		—		45
Foreign currency exchange contracts – matched customer book	763		—		763		—		—		763
Foreign currency exchange contracts – foreign currency loan	1		—		1		—		—		1
	$	93,585	$	—	$	93,585	$	321	$	367	$	92,897


	As of December 31, 2022
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet				Net Amount
Description							Financial Instruments		Collateral Pledged/ (Received)
	(In thousands)
Derivative Assets
Interest rate swaps	$	16	$	—	$	16	$	—	$	—	$	16
Customer-related positions:
Interest rate swaps	23,567		—		23,567		381		(14,430)		8,756
Risk participation agreements	78		—		78		—		—		78
Foreign currency exchange contracts – matched customer book	198		—		198		—		—		198
Foreign currency exchange contracts – foreign currency loan	2		—		2		—		—		2
	$	23,861	$	—	$	23,861	$	381	$	(14,430)	$	9,050
Derivative Liabilities
Interest rate swaps	$	2,417	$	—	$	2,417	$	—	$	2,417	$	—
Customer-related positions:
Interest rate swaps	78,577		—		78,577		381		—		78,196
Risk participation agreements	130		—		130		—		—		130
Foreign currency exchange contracts – matched customer book	205		—		205		—		—		205
Foreign currency exchange contracts – foreign currency loan	93		—		93		—		—		93
	$	81,422	$	—	$	81,422	$	381	$	2,417	$	78,624