Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2021

Derivative financial instruments may be eligible for offset in the consolidated statements of financial condition, 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. The Company elected to account for centrally-cleared derivative contracts on a gross basis. With regard to derivative contracts not centrally cleared through a clearinghouse, regulations require collateral to be posted by the party with a net liability position. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments are commonly referred to as variation margin and are treated as settlements of derivative exposure rather than as collateral.

Financial instruments that are eligible for offset in the consolidated statements of financial condition as of the periods indicated are presented below:


							Gross Amounts Not Offset in the Consolidated Statements of Financial Condition
(Dollars in thousands)	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts Presented in the Consolidated Statements of Financial Condition		Financial Instruments (1)		Cash Collateral (2)		Net Amount
June 30, 2021
Derivative assets:
Interest rate swaps	$	6,712	$	—	$	6,712	$	—	$	—	$	6,712
Total	$	6,712	$	—	$	6,712	$	—	$	—	$	6,712

Derivative liabilities:
Interest rate swaps	$	6,716	$	—	$	6,716	$	(4,560)	$	(2,156)	$	—
Total	$	6,716	$	—	$	6,716	$	(4,560)	$	(2,156)	$	—





December 31, 2020
Derivative assets:
Interest rate swaps	$	12,053	$	—	$	12,053	$	—	$	—	$	12,053
Total	$	12,053	$	—	$	12,053	$	—	$	—	$	12,053

Derivative liabilities:
Interest rate swaps	$	12,066	$	—	$	12,066	$	(6,140)	$	(5,926)	$	—
Total	$	12,066	$	—	$	12,066	$	(6,140)	$	(5,926)	$	—

(1) Represents the fair value of securities pledged with counterparty bank.
(2) Represents cash collateral pledged with counterparty bank.