Transfers of Financial Assets

9 Months Ended

Sep. 30, 2016

5. Transfers of Financial Assets

The Company’s transfers of financial assets with continuing interest as of September 30, 2016 and December 31, 2015 included pledges of collateral to secure public deposits and repurchase agreements, FHLB and FRB borrowing capacity, automated clearing house (“ACH”) transactions and interest rate swaps.

For repurchase agreements and public deposits, the Company enters into trilateral agreements with the entity and safekeeper to pledge investment securities as collateral in the event of default. For transfers of assets with the FHLB and the FRB, the Company enters into bilateral agreements to pledge loans and investment securities as collateral to secure borrowing capacity. For ACH transactions, the Company enters into bilateral agreements to collateralize possible daylight overdrafts. For interest rate swaps, the Company enters into bilateral agreements to pledge collateral when either party is in a negative market position to mitigate counterparty credit risk. No counterparties have the right to re-pledge the collateral.

The carrying amounts of the assets pledged as collateral as of September 30, 2016 and December 31, 2015 were:


(dollars in thousands)	September 30, 2016		December 31, 2015
Public deposits	$	2,558,916	$	2,704,686
Federal Home Loan Bank		2,040,505		2,537,665
Federal Reserve Bank		935,641		814,177
Repurchase agreements		10,066		237,699
ACH transactions		156,761		151,330
Interest rate swaps		64,352		29,436
Total	$	5,766,241	$	6,474,993

As the Company did not enter into reverse repurchase agreements, no collateral was accepted as of September 30, 2016 and December 31, 2015. In addition, no debt was extinguished by in-substance defeasance.

A disaggregation of the gross amount of recognized liabilities for repurchase agreements by the class of collateral pledged as of September 30, 2016 and December 31, 2015 was as follows:


	September 30, 2016
	Remaining Contractual Maturity of the Agreements
	Up to				Greater than
(dollars in thousands)	30 days		31-90 days		90 days		Total
Collateralized mortgage obligations:
Government agency	$	—	$	—	$	2,000	$	2,000
Government-sponsored enterprises		—		—		7,151		7,151
Gross amount of recognized liabilities for repurchase agreements in Note 7	$	—	$	—	$	9,151	$	9,151


	December 31, 2015
	Remaining Contractual Maturity of the Agreements
	Up to				Greater than
(dollars in thousands)	30 days		31-90 days		90 days		Total
Non-government asset-backed securities	$	92	$	92	$	—	$	184
Collateralized mortgage obligations:
Government agency		768		—		170,669		171,437
Government-sponsored enterprises		5,340		4,908		34,282		44,530
Gross amount of recognized liabilities for repurchase agreements in Note 7	$	6,200	$	5,000	$	204,951	$	216,151

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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