BALANCE SHEET OFFSETTING

The Company does not offset fair value amounts recognized for derivative instruments or repurchase agreements. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. At March 31, 2014, it was determined that no additional collateral would have to be posted to immediately settle these instruments.

The following tables present the Company's asset and liability derivative positions and the potential effect of netting arrangements on its financial position, as of the periods indicated:



							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts Recognized in the Statement of Financial Position		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments (1)		Collateral Pledged (Received)			Net Amount
	March 31, 2014
	(Dollars in thousands)
Derivative Assets
Interest rate swaps	$	—	$	—	$	—	$	—	$	—		$	—
Loan level swaps	15,958		—		15,958		2,078		—			13,880
Customer foreign exchange contracts	479		—		479		—		—			479
	$	16,437	$	—	$	16,437	$	2,078	$	—		$	14,359

Derivative Liabilities
Interest rate swaps	$	8,720	$	—	$	8,720	$	—	$	8,720		$	—
Loan level swaps	15,979		—		15,979		2,078		11,823			2,078
Customer foreign exchange contracts	463		—		463		—		—			463
Repurchase agreements
Customer repurchase agreements	128,485		—		128,485		—		(128,485		)	—
Wholesale repurchase agreements	50,000		—		50,000		—		(50,000		)	—
	$	203,647	$	—	$	203,647	$	2,078	$	(157,942	)	$	2,541


(1)	Includes loan level swaps which are not subject to a master netting arrangement and thus are not offset in the statement of financial position.



							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts Recognized in the Statement of Financial Position		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)			Net Amount
	December 31, 2013
	(Dollars in thousands)
Derivative Assets
Interest rate swaps	$	—	$	—	$	—	$	—	$	—		$	—
Loan level swaps	16,301		—		16,301		2,823		—			13,478
Customer foreign exchange contracts	396		—		396		—		—			396
	$	16,697	$	—	$	16,697	$	2,823	$	—		$	13,874

Derivative Liabilities
Interest rate swaps	$	9,630	$	—	$	9,630	$	—	$	9,630		$	—
Loan level swaps	16,340		—		16,340		2,823		10,108			3,409
Customer foreign exchange contracts	390		—		390		—		—			390
Repurchase agreements
Customer repurchase agreements	149,288		—		149,288		—		(149,288		)	—
Wholesale repurchase agreements	50,000		—		50,000		—		(50,000		)	—
	$	225,648	$	—	$	225,648	$	2,823	$	(179,550	)	$	3,799

The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the Company could be required to terminate any outstanding derivatives with the counterparty. All liability position interest rate swap and customer loan level swap counterparties have credit-risk contingent features as of the dates indicated in the table above. In addition, derivative instruments that contain credit-risk related contingent features that are in a net liability position require the Company to assign collateral as noted in the table above.