Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2014

Offsetting [Abstract]

Balance Sheet Offsetting

NOTE 12. Balance Sheet Offsetting

Assets and liabilities relating to certain financial instruments, including derivatives and securities sold under agreements to repurchase, may be eligible for offset in the consolidated balance sheet as permitted under accounting guidance. Susquehanna is party to transactions involving derivative instruments that are subject to master netting arrangements or similar agreements. Under these agreements, Susquehanna may have the right to net settle multiple contracts with the same counterparty. Certain derivative transactions may require Susquehanna to receive or pledge cash collateral based on the contract provisions.

Susquehanna also enters into agreements in which it sells securities subject to an obligation to repurchase the same or similar securities. Under these agreements, Susquehanna may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates Susquehanna to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in Susquehanna's consolidated balance sheet, while the securities underlying the repurchase agreements remain in the respective investment securities account, therefore there is no offsetting or netting of the investment securities assets with the repurchase agreement liability.

Susquehanna also offers derivative products to qualifying customers and enters into offsetting derivative transactions in due course. Susquehanna manages a matched book with respect to its derivative instruments offered as part of this service to its customers in order to minimize its interest rate risk resulting from such transactions. These instruments are free-standing derivatives and are recorded at fair value on the consolidated balance sheet. Collateral is posted by the counterparty with net liability positions in accordance with the contract provisions.

Susquehanna is subject to the regulations of the Commodity Futures Trading Commission that require financial institutions to clear all eligible contracts beginning June 2013. Susquehanna fulfills this obligation by clearing its eligible contracts through a clearing member that faces a designated clearing house on Susquehanna's behalf. Susquehanna reports amounts for interest rate contracts in a single clearing member account as of period end on a net basis in the Consolidated Balance Sheet, including the related unrealized contract gains and losses, accrued interest receivable/payable, and cash collateral posted as initial and variation margin. Derivatives originated prior to June 2013 continue to be presented on a gross basis in the Consolidated Balance Sheet.

	The following table provides information about financial instruments that are eligible for offset at June 30, 2014 and December
31, 2013.
Balance Sheet Netting Disclosure about Offsetting Assets and Liabilities
							Net Amounts
							Presented in
							the		Gross Amounts Not Offset in the
			Gross				Consolidated		Consolidated Balance Sheet
			Amounts		Gross Amounts		Balance		Financial		Cash
			Recognized		Offset		Sheet		Instruments		Collateral		Net Amount
June 30, 2014
Financial assets:
	Derivatives		$	24,586	$	0	$	24,586	$	0	$	(1,250)	$	23,336
Financial liabilities:
	Derivatives		$	43,164	$	0	$	43,164	$	0	$	(43,826)	$	(662)
	Repurchase agreements			275,830		0		275,830		(275,830)		0		0
		Total	$	318,994	$	0	$	318,994	$	(275,830)	$	(43,826)	$	(662)
December 31, 2013
Financial assets:
	Derivatives		$	24,316	$	0	$	24,316	$	0	$	(3,940)	$	20,376
Financial liabilities:
	Derivatives		$	50,247	$	0	$	50,247	$	0	$	(42,813)	$	7,434
	Repurchase agreements			295,800		0		295,800		(295,800)		0		0
		Total	$	346,047	$	0	$	346,047	$	(295,800)	$	(42,813)	$	7,434

		The table below presents the offsetting of derivative assets and derivative liabilities as of June 30, 2014 and December 31,
2013.
				Derivative Assets and Collateral								Derivative Liabilities and Collateral
				Held by Counterparty								Pledged by Counterparty
				Amounts		Gross Amounts						Amounts		Gross Amounts
				Presented in		Not Offset						Presented in		Not Offset
				the		in the Consolidated						the		in the Consolidated
				Consolidated		Balance Sheet						Consolidated		Balance Sheet
				Balance		Financial		Cash		Net		Balance		Financial		Cash		Net
June 30, 2014				Sheet		Instruments		Collateral		Amount		Sheet		Instruments		Collateral		Amount
Cleared Agreements:
	Clearing member A			$	0	$	0	$	0	$	0	$	6,641	$	0	$	(9,992)	$	(3,351)
					0		0		0		0		6,641		0		(9,992)		(3,351)
Bilateral Agreements:
	Counterparty:
		Dealer A			774		0		0		774		3,869		0		(3,120)		749
		Dealer B			965		0		0		965		3,305		0		(2,040)		1,265
		Dealer C			54		0		0		54		1,181		0		(1,150)		31
		Dealer D			2,345		0		(1,250)		1,095		1,265		0		0		1,265
		Dealer E			0		0		0		0		16,261		0		(18,600)		(2,339)
		Dealer F			0		0		0		0		3,080		0		(4,200)		(1,120)
		Dealer G			0		0		0		0		2,664		0		(3,130)		(466)
		Dealer H			0		0		0		0		876		0		(1,060)		(184)
		Dealer I			0		0		0		0		400		0		(280)		120
		Dealer J			0		0		0		0		18		0		0		18
		End User			20,448		0		0		20,448		3,604		0		(254)		3,350
					24,586		0		(1,250)		23,336		36,523		0		(33,834)		2,689
			Total	$	24,586	$	0	$	(1,250)	$	23,336	$	43,164	$	0	$	(43,826)	$	(662)
December 31, 2013
Cleared Agreements:
	Clearing member A			$	19	$	0	$	0	$	19	$	1,077	$	0	$	(3,993)	$	(2,916)
					19		0		0		19		1,077		0		(3,993)		(2,916)
Bilateral Agreements:
	Counterparty:
		Dealer A			2,836		0		0		2,836		3,840		0		(1,290)		2,550
		Dealer B			2,412		0		0		2,412		3,306		0		(1,400)		1,906
		Dealer C			359		0		0		359		684		0		(550)		134
		Dealer D			5,571		0		(3,940)		1,631		688		0		0		688
		Dealer E			0		0		0		0		21,251		0		(24,100)		(2,849)
		Dealer F			0		0		0		0		5,081		0		(6,100)		(1,019)
		Dealer G			0		0		0		0		3,966		0		(4,260)		(294)
		Dealer H			0		0		0		0		770		0		(1,120)		(350)
		Dealer I			0		0		0		0		121		0		0		121
		Dealer J			0		0		0		0		18		0		0		18
		End User			13,119		0		0		13,119		9,445		0		0		9,445
					24,297		0		(3,940)		20,357		49,170		0		(38,820)		10,350
			Total	$	24,316	$	0	$	(3,940)	$	20,376	$	50,247	$	0	$	(42,813)	$	7,434