Balance Sheet Offsetting

9 Months Ended

Sep. 30, 2019

Derivative financial instruments may be eligible for offset in the consolidated balance sheets, such as those subject to enforceable master netting arrangements or a similar agreement. Under these agreements, the Company has the right to net settle multiple contracts with the same counterparty. The Company offers an interest rate swap product to qualified customers, which are then paired with derivative contracts the Company enters into with a counterparty bank. While derivative contracts entered into with counterparty banks may be subject to enforceable master netting agreements, derivative contracts with customers may not be subject to enforceable master netting arrangements.

Financial instruments that are eligible for offset in the consolidated statements of financial condition as of September 30, 2019 are presented in the table below:



							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral (1)			Net Amount
	(dollars in thousands)
September 30, 2019
Financial assets:
Derivatives not designated as hedging instruments	$	2,853	$	—	$	2,853	$	—	$	—		$	2,853
Total	$	2,853	$	—	$	2,853	$	—	$	—		$	2,853

Financial liabilities:
Derivatives not designated as hedging instruments	$	2,853	$	—	$	2,853	$	—	$	(2,750	)	$	103
Total	$	2,853	$	—	$	2,853	$	—	$	(2,750	)	$	103

⁽¹⁾ Represents cash collateral pledged with counterparty bank.

Financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2018 are presented in the table below:



								Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets			Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral ⁽¹⁾		Net Amount
	(dollars in thousands)
December 31, 2018
Financial assets:
Derivatives not designated as hedging instruments	$	2,177	$	(496	)	$	1,681	$	—	$	—	$	1,681
Total	$	2,177	$	(496	)	$	1,681	$	—	$	—	$	1,681

Financial liabilities:
Derivatives not designated as hedging instruments	$	1,681	$	—		$	1,681	$	—	$	—	$	1,681
Total	$	1,681	$	—		$	1,681	$	—	$	—	$	1,681

⁽¹⁾ Represents cash collateral held with counterparty bank.