(10) Receivables and Payables

Receivables from, and Payables to, Brokers, Dealers and Clearing Organizations

The following is a summary of receivables from, and payables to, brokers, dealers and clearing organizations at December 31 (dollars in thousands):

	Receivables from						Payables to
	2015			2014			2015		2014
Broker-dealers	$	167,514		$	147,240		$	64,763	$	51,615
Clearing organizations		3,480			1,447			7,644		39,433
Securities borrowed		866,520			496,596			—		—
Securities loaned		—			—			888,152		508,993
Allowance for doubtful accounts		(737	)		(669	)		—		—

Total	$	1,036,777		$	644,614		$	960,559	$	600,041

Receivables from, and Payables to, Customers

The following is a summary of receivables from, and payables to, customers at December 31 (dollars in thousands):

	Receivables from						Payables to
	2015			2014			2015		2014
Customers	$	49,688		$	108,518		$	9,957	$	11,132
Allowance for doubtful accounts		(512	)		(583	)		—		—

Net	$	49,176		$	107,935		$	9,957	$	11,132

Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts based upon an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of past due balances, historical collection experience and other specific account data. Account balances are written off against the allowance when it is determined that the receivable is uncollectible. The allowance was increased by $0.5 million in 2015 and decreased by $0.8 million and $0.4 million in 2014 and 2013, respectively. The decrease in 2014 included a $1.0 million reduction from revising the allowance estimation methodology after evaluating historical trends, the number of days invoices were outstanding, client patterns and the Company's write-off history.

Securities Borrowed and Loaned

As of December 31, 2015, securities borrowed as part of the Company's matched book operations with a fair value of $861 million were delivered for securities loaned. The gross amounts of interest earned on cash provided to counterparties as collateral for securities borrowed, and interest incurred on cash received from counterparties as collateral for securities loaned, and the resulting net amount included in other revenue on the Consolidated Statements of Operations for 2015, 2014 and 2013 were as follows (dollars in thousands):

	2015			2014			2013
Interest earned	$	5,512		$	15,072		$	17,756
Interest incurred		(3,720	)		(10,218	)		(10,786	)

Net	$	1,792		$	4,854		$	6,970

Interest earned in 2013 includes a gain of $2.5 million related to adjustments to historical dividend withholdings on securities borrowed.

Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Deposits paid for securities borrowed transactions require the Company to deposit cash with the lender. With respect to deposits received for securities loaned, the Company receives collateral in the form of cash in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary.

The Company's securities borrowing and lending is generally done under industry standard agreements ("Master Securities Lending Agreements") that may allow, following an event of default by either party, the prompt close-out of all transactions (including the liquidation of securities held) and the offsetting of obligations to return cash or securities, as the case may be, by the non-defaulting party. Events of default under the Master Securities Lending Agreements generally include, subject to certain conditions: (a) failure to timely deliver cash or securities as required under the transaction, (b) a party's insolvency, bankruptcy, or similar proceeding, (c) breach of representation, and (d) a material breach of the agreement. The counterparty that receives the securities in these transactions generally has unrestricted access in its use of the securities. For financial statement purposes, the Company does not offset securities borrowed and securities loaned.

The following table summarizes the transactions under certain Master Securities Lending Agreements that may be eligible for offsetting if an event of default occurred and a right of offset was legally enforceable (dollars in thousands):

	Gross Amounts of Recognized Assets/ (Liabilities)			Gross Amounts Offset in the Consolidated Statement of Financial Condition		Net Amounts Presented in the Consolidated Statement of Financial Condition			Collateral Received or Pledged (including Cash)			Net Amount
As of December 31, 2015:
Deposits paid for securities borrowed	$	866,520		$	—	$	866,520		$	866,520		$	—
Deposits received for securities loaned		(888,152	)		—		(888,152	)		(868,843	)		(19,309	)
As of December 31, 2014:
Deposits paid for securities borrowed	$	496,596		$	—	$	496,596		$	496,374		$	222
Deposits received for securities loaned		(508,993	)		—		(508,993	)		(497,462	)		(11,531	)

In accordance with ASU Topic 860, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", the gross obligations of deposits received for securities loaned was $472.2 million for equity securities and $415.9 million for corporate bonds at December 31, 2015 and $386.2 million for equity securities and $122.8 million for corporate bonds at December 31, 2014. The remaining contractual maturities of these agreements were overnight and continuous.