Note 12. Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives, securities purchased under resale agreements (“reverse repurchase agreements”) and securities sold under repurchase agreements (“repurchase agreements”), may be eligible for offset in the consolidated balance sheet as permitted under accounting guidance. The Company is party to transactions involving derivative instruments that are subject to enforceable master netting arrangements or similar agreements. Under these agreements, the Company may have the right to net settle multiple contracts with the same counterparty. Certain derivative transactions may require the Company to receive or pledge marketable debt securities as collateral based on certain risk thresholds. The Company also enters into reverse repurchase agreements and collateral swap agreements. Under reverse repurchase agreements, the Company has the right to claim securities collateral if the counterparty fails to perform. Collateral swap agreements involve the exchange of securities collateral under simultaneous repurchase and reverse repurchase agreements with the same bank counterparty. These agreements have the same principal amounts, inception dates and maturity dates, and have been offset against each other in the balance sheet as permitted under the netting provisions of ASC Topic 210-20-45, Balance Sheet — Offsetting. Securities swaps totaled $500.0 million at September 30, 2015. At September 30, 2015, the Company had delivered collateral consisting of agency mortgage-backed securities with a fair value of approximately $534.2 million on the repurchase agreement and accepted collateral consisting of corporate and municipal bonds with a fair value of approximately $521.0 million on the reverse repurchase agreement. Securities that have been pledged by counterparties as collateral are not recorded in the Company’s consolidated balance sheet unless the counterparty defaults. Securities that have been pledged by the Company to counterparties continue to be reported in the Company’s consolidated balance sheet unless the Company defaults.

The Company also offers various derivative products to clients and enters into derivative transactions in due course. These derivative contracts are offset by paired trades with unrelated bank counterparties. Certain derivative transactions with clients are not subject to master netting arrangements and have been excluded from the balance sheet offsetting tables below. The following tables provide information about financial instruments that are eligible for offset at September 30, 2015 and December 31, 2014:

	Gross		Gross			Net Amount Presented		Gross Amounts Not Offset in the Balance Sheet
(in thousands)	Amount Recognized		Amount Offset			in the Balance Sheet		Securities Collateral			Cash Collateral			Net Amount
September 30, 2015
Financial assets:
Reverse repurchase agreements	$	700,555	$	(500,253	)	$	200,302	$	(200,000	)	$	—		$	302
Derivatives not designated as hedging instruments	8,661		(207		)	8,454		—			—			8,454

Total financial assets	$	709,216	$	(500,460	)	$	208,756	$	(200,000	)	$	—		$	8,756


Financial liabilities:
Repurchase agreements	$	500,253	$	(500,253	)	$	—	$	—		$	—		$	—
Derivatives not designated as hedging instruments	81,776		(207		)	81,569		(16,697		)	(57,162		)	7,710

Total financial liabilities	$	582,029	$	(500,460	)	$	81,569	$	(16,697	)	$	(57,162	)	$	7,710

	Gross		Gross			Net Amount Presented		Gross Amounts Not Offset in the Balance Sheet
(in thousands)	Amount Recognized		Amount Offset			in the Balance Sheet		Securities Collateral			Cash Collateral			Net Amount
December 31, 2014
Financial assets:
Reverse repurchase agreements	$	700,149	$	(500,041	)	$	200,108	$	(200,000	)	$	—		$	108
Derivatives not designated as hedging instruments	7,669		(1,562		)	6,107		—			—			6,107

Total financial assets	$	707,818	$	(501,603	)	$	206,215	$	(200,000	)	$	—		$	6,215


Financial liabilities:
Repurchase agreements	$	500,041	$	(500,041	)	$	—	$	—		$	—		$	—
Derivatives not designated as hedging instruments	51,125		(1,562		)	49,563		(14,654		)	(28,046		)	6,863

Total financial liabilities	$	551,166	$	(501,603	)	$	49,563	$	(14,654	)	$	(28,046	)	$	6,863