Resale and Repurchase Agreements

9 Months Ended

Sep. 30, 2023

Resale and Repurchase Agreements [Abstract]

Resale and Repurchase Agreements [Text Block]

Resale and Repurchase AgreementsThe Company regularly enters into resale and repurchase agreement transactions with other financial institutions and with its own customers. Resale and repurchase agreements are agreements to purchase/sell securities subject to an obligation to resell/repurchase the same or similar securities. They are accounted for as secured lending and collateralized borrowing (e.g. financing transactions), not as true sales and purchases of the underlying collateral securities. Some of the resale and repurchase agreements were transacted under master netting arrangements that contain a conditional right of offset, such as close-out netting, upon default. The security collateral accepted or pledged in resale and repurchase agreements with other financial institutions 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 its customers.

The Company is party to agreements commonly known as collateral swaps. These agreements involve the exchange of collateral under simultaneous repurchase and resale agreements with the same financial institution counterparty. These repurchase and resale agreements have the same principal amounts, inception dates, and maturity dates and have been offset against each other in the consolidated balance sheets, as permitted under the netting provisions of ASC 210-20-45. The collateral swaps totaled $200.0 million at September 30, 2023 and December 31, 2022. At September 30, 2023, the Company had posted collateral of $206.9 million in marketable securities, consisting of agency mortgage-backed bonds, and had accepted $209.8 million in agency mortgage-backed bonds.

The following table shows the extent to which resale agreement assets and repurchase agreement liabilities with the same counterparty have been offset on the consolidated balance sheets, in addition to the extent to which they could potentially be offset. Also shown is collateral received or pledged, which consists of marketable securities. The collateral amounts in the table are limited to the outstanding balances of the related asset or liability (after offsetting is applied); thus amounts of excess collateral are not shown.

							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 Available for Offset		Securities Collateral Received/Pledged		Unsecured Amount
September 30, 2023
Total resale agreements, subject to master netting arrangements	$	650,000	$	(200,000)	$	450,000	$	—	$	(450,000)	$	—
Total repurchase agreements, subject to master netting arrangements	2,438,826		(200,000)		2,238,826		—		(2,238,826)		—
December 31, 2022
Total resale agreements, subject to master netting arrangements	$	1,025,000	$	(200,000)	$	825,000	$	—	$	(825,000)	$	—
Total repurchase agreements, subject to master netting arrangements	2,881,874		(200,000)		2,681,874		—		(2,681,874)		—

The table below shows the remaining contractual maturities of repurchase agreements outstanding at September 30, 2023 and December 31, 2022, in addition to the various types of marketable securities that have been pledged by the Company as collateral for these borrowings.

	Remaining Contractual Maturity of the Agreements
(In thousands)	Overnight and continuous		Up to 90 days		Greater than 90 days		Total
September 30, 2023
Repurchase agreements, secured by:
U.S. government and federal agency obligations	$	137,949	$	13,015	$	4,500	$	155,464
Agency mortgage-backed securities	1,426,015		221,604		18,700		1,666,319
Non-agency mortgage-backed securities	9,100		—		—		9,100
Asset-backed securities	572,135		—		—		572,135
Other debt securities	35,808		—		—		35,808
Total repurchase agreements, gross amount recognized	$	2,181,007	$	234,619	$	23,200	$	2,438,826
December 31, 2022
Repurchase agreements, secured by:
U.S. government and federal agency obligations	$	488,053	$	26,928	$	12,460	$	527,441
Agency mortgage-backed securities	1,792,314		21,744		204,500		2,018,558
Non-agency mortgage-backed securities	40,950		—		—		40,950
Asset-backed securities	293,001		—		—		293,001
Other debt securities	1,924		—		—		1,924
Total repurchase agreements, gross amount recognized	$	2,616,242	$	48,672	$	216,960	$	2,881,874