Balance Sheet Offsetting

3 Months Ended

Mar. 31, 2013

Balance Sheet Offsetting

Note 9 - Balance Sheet Offsetting

Certain financial instruments, including resell and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Corporation’s derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Corporation does not generally offset such financial instruments for financial reporting purposes.

Information about financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2013 is presented in the following tables.

	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
March 31, 2013
Financial assets:
Derivatives:
Loan/lease interest rate swaps and caps	$	262	$	—	$	262
Commodity swaps and options		2,159		—		2,159
Foreign currency forward contracts		3		—		3
Total derivatives		2,424		—		2,424
Resell agreements		4,898		—		4,898
	$	7,322	$	—	$	7,322
Financial liabilities:
Derivatives:
Loan/lease interest rate swaps	$	60,999	$	—	$	60,999
Interest rate swap on junior subordinated deferrable interest debentures		3,306		—		3,306
Commodity swaps and options		4,430		—		4,430
Foreign currency forward contracts		207		—		207
Total derivatives		68,942		—		68,942
Repurchase agreements		508,702		—		508,702
	$	577,644	$	—	$	577,644

			Gross Amounts Not Offset
	Net Amount Recognized		Financial Instruments			Collateral			Net Amount
March 31, 2013
Financial assets:
Derivatives:
Counterparty A	$	7	$	(7	)	$	—		$	—
Counterparty B		671		(671	)		—			—
Counterparty C		1,549		(1,549	)		—			—
Other counterparties		197		(194	)		—			3
Total derivatives		2,424		(2,421	)		—			3
Resell agreements		4,898		—			(4,898	)		—
Total	$	7,322	$	(2,421	)	$	(4,898	)	$	3
Financial liabilities:
Derivatives:
Counterparty A	$	30,656	$	(7	)	$	(29,830	)	$	819
Counterparty B		13,715		(671	)		(10,703	)		2,341
Counterparty C		14,561		(1,549	)		(13,012	)		—
Other counterparties		10,010		(194	)		(7,670	)		2,146
Total derivatives		68,942		(2,421	)		(61,215	)		5,306
Repurchase agreements		508,702		—			(508,702	)		—
Total	$	577,644	$	(2,421	)	$	(569,917	)	$	5,306

Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2012 is presented in the following tables.

	Gross Amount Recognized		Gross Amount Offset		Net Amount Recognized
December 31, 2012
Financial assets:
Derivatives:
Loan/lease interest rate swaps and caps	$	36	$	—	$	36
Commodity swaps and options		2,207		—		2,207
Foreign currency forward contracts		3		—		3
Total derivatives		2,246		—		2,246
Resell agreements		4,898		—		4,898
	$	7,144	$	—	$	7,144
Financial liabilities:
Derivatives:
Loan/lease interest rate swaps	$	68,180	$	—	$	68,180
Interest rate swap on junior subordinated deferrable interest debentures		4,365		—		4,365
Commodity swaps and options		1,614		—		1,614
Total derivatives		74,159		—		74,159
Repurchase agreements		559,461		—		559,461
	$	633,620	$	—	$	633,620

			Gross Amounts Not Offset
	Net Amount Recognized		Financial Instruments			Collateral			Net Amount
December 31, 2012
Financial assets:
Derivatives:
Counterparty A	$	4	$	(4	)	$	—		$	—
Counterparty B		2,033		(2,033	)		—			—
Counterparty C		189		(189	)		—			—
Other counterparties		20		(17	)		—			3
Total derivatives		2,246		(2,243	)		—			3
Resell agreements		4,898		—			(4,898	)		—
Total	$	7,144	$	(2,243	)	$	(4,898	)	$	3

			Gross Amounts Not Offset
	Net Amount		Financial						Net
	Recognized		Instruments			Collateral			Amount
December 31, 2012 (continued)
Financial liabilities:
Derivatives:
Counterparty A	$	33,999	$	(4	)	$	(33,778	)	$	217
Counterparty B		14,374		(2,033	)		(11,318	)		1,023
Counterparty C		13,807		(189	)		(13,618	)		—
Other counterparties		11,979		(17	)		(10,059	)		1,903
Total derivatives		74,159		(2,243	)		(68,773	)		3,143
Repurchase agreements		559,461		—			(559,461	)		—
Total	$	633,620	$	(2,243	)	$	(628,234	)	$	3,143

Information about financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2012 is presented in the following tables.

	Gross Amount		Gross Amount		Net Amount
	Recognized		Offset		Recognized
March 31, 2012
Financial assets:
Derivatives:
Loan/lease interest rate swaps and caps	$	28	$	—	$	28
Commodity swaps and options		6,790		—		6,790
Total derivatives		6,818		—		6,818
Resell agreements		8,052		—		8,052
	$	14,870	$	—	$	14,870
Financial liabilities:
Derivatives:
Loan/lease interest rate swaps	$	65,050	$	—	$	65,050
Interest rate swap on junior subordinated deferrable interest debentures		7,205		—		7,205
Commodity swaps and options		11,326		—		11,326
Foreign currency forward contracts		6		—		6
Total derivatives		83,587		—		83,587
Repurchase agreements		635,248		—		635,248
	$	718,835	$	—	$	718,835

			Gross Amounts Not Offset
	Net Amount		Financial						Net
	Recognized		Instruments			Collateral			Amount
March 31, 2012
Financial assets:
Derivatives:
Counterparty A	$	28	$	(28	)	$	—		$	—
Counterparty B		6,655		(6,655	)		—			—
Counterparty C		135		(135	)		—			—
Other counterparties		—		—			—			—
Total derivatives		6,818		(6,818	)		—			—
Resell agreements		8,052		—			(8,052	)		—
Total	$	14,870	$	(6,818	)	$	(8,052	)	$	—
Financial liabilities:
Counterparty A	$	35,481	$	(28	)	$	(35,453	)	$	—
Counterparty B		20,407		(6,655	)		(13,752	)		—
Counterparty C		14,436		(135	)		(14,301	)		—
Other counterparties		13,263		—			(12,057	)		1,206
Total derivatives		83,587		(6,818	)		(75,563	)		1,206
Repurchase agreements		635,248		—			(635,248	)		—
Total	$	718,835	$	(6,818	)	$	(710,811	)	$	1,206