Balance Sheet Offsetting

The following tables show the extent to which assets and liabilities relating to derivative instruments, securities purchased under agreements to resell (resell agreements), and securities sold under agreements to repurchase (repurchase agreements) have been offset in the consolidated balance sheets. They also provide information about these instruments which are subject to an enforceable master netting arrangement, irrespective of whether they are offset, and the extent to which the instruments could potentially be offset. Also shown is collateral received or pledged in the form of other financial instruments, which are generally marketable securities. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown. Most of the assets and liabilities in the following tables were transacted under master netting arrangements that contain a conditional right of offset, such as close-out netting, upon default.

The financial collateral securing these arrangements consists of marketable securities. These are valued daily, and adjustments to amounts received and pledged by the Company are made as appropriate to maintain proper collateralization for these transactions. Collateral posted by the Company to financial institution counterparties under derivative contracts is generally subject to thresholds and transfer minimums. By contract, it may be sold or re-pledged by the secured party until recalled at a subsequent valuation date by the pledging party. Derivative transactions with customers are generally secured by non-financial collateral, such as real and personal property, which is not shown in the table below. Collateral accepted or pledged in resell and repurchase agreements with other financial institutions also may be sold or re-pledged by the secured party, but is usually delivered to and held by third party trustees. The Company generally retains custody of securities pledged for repurchase agreements with customers.



								Gross Amounts Not Offset in the Balance Sheet
(In thousands)	Gross Amount Recognized		Gross Amounts Offset in the Balance Sheet			Net Amounts Presented in the Balance Sheet		Financial Instruments			Securities Collateral Received/Pledged			Net Amount
March 31, 2013
Assets:
Derivatives subject to master netting agreements	$	15,752	$	—		$	15,752	$	(1,180	)	$	—		$	14,572
Derivatives not subject to master netting agreements	393		—			393
Total derivatives	16,145		—			16,145
Total resell agreements, subject to master netting arrangements	1,500,000		(300,000		)	1,200,000		—			(1,200,000		)	—
Liabilities:
Derivatives subject to master netting agreements	16,105		—			16,105		(1,180		)	(13,558		)	1,367
Derivatives not subject to master netting agreements	689		—			689
Total derivatives	16,794		—			16,794
Total repurchase agreements, subject to master netting arrangements	1,390,108		(300,000		)	1,090,108		—			(1,090,108		)	—
December 31, 2012
Assets:
Derivatives subject to master netting agreements	$	16,475	$	—		$	16,475	$	(603	)	$	—		$	15,872
Derivatives not subject to master netting agreements	265		—			265
Total derivatives	16,740		—			16,740
Total resell agreements, subject to master netting arrangements	1,500,000		(300,000		)	1,200,000		—			(1,200,000		)	—
Liabilities:
Derivatives subject to master netting agreements	17,315		—			17,315		(603		)	(16,017		)	695
Derivatives not subject to master netting agreements	403		—			403
Total derivatives	17,718		—			17,718
Total repurchase agreements, subject to master netting arrangements	1,359,040		(300,000		)	1,059,040		—			(1,059,040		)	—

During 2012, the Company entered into several agreements commonly known as collateral swaps. These agreements involve the exchange of collateral under simultaneous repurchase and resell agreements with the same financial institution counterparty. These repurchase and resell 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 210-20-45. The collateral swaps totaled $300.0 million at both March 31, 2013 and December 31, 2012. At March 31, 2013, the Company had posted collateral consisting of $313.5 million in agency mortgage-backed securities and accepted $341.7 million in investment grade asset-backed, commercial mortgage-backed, and corporate bonds.