(12) 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
	December 31,		December 31,		December 31,		December 31,
	2018		2017		2018		2017
Broker-dealers	$	247,214	$	189,817	$	200,579	$	105,022
Clearing organizations		940		708		33,367		10,011
Securities borrowed		27,713		4,246		—		—
Securities loaned		—		—		94,248		4,245
Allowance for doubtful accounts		(1,121)		(864)		—		—
Total	$	274,746	$	193,907	$	328,194	$	119,278

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
	December 31,		December 31,		December 31,		December 31,
	2018		2017		2018		2017
Customers	$	227,334	$	75,062	$	36,825	$	23,568
Allowance for doubtful accounts		(476)		(367)		—		—
Net	$	226,858	$	74,695	$	36,825	$	23,568

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 $0.6 million in 2018 and $0.4 million in 2017. Write offs were $0.2 million in 2018 and 2017 had no write offs.

Securities Borrowed and Loaned

In 2016, the Company closed its U.S. matched-book securities lending operations. At December 31, 2018 and 2017, the balances for securities borrowed and securities loaned related to customer settlement activities.

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 within the U.S. matched-book operations prior to the wind-down of all balances, and the resulting net amount included in other revenue on the Consolidated Statements of Operations for 2016 were as follows (dollars in thousands):


	2016
Interest earned	$	1,961
Interest incurred		(1,132)
Net	$	829

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		Net Amounts		Collateral
			Offset in the		Presented in the		Received or
	Gross Amounts of		Consolidated		Consolidated		Pledged
	Recognized Assets/		Statement of		Statement of		(including		Net
	(Liabilities)		Financial Condition		Financial Condition		Cash)		Amount
As of December 31, 2018:
Deposits paid for securities borrowed	$	27,713	$	—	$	27,713	$	27,713	$	—
Deposits received for securities loaned		94,248		—		94,248		95,223		(975)
As of December 31, 2017:
Deposits paid for securities borrowed	$	4,246	$	—	$	4,246	$	4,246	$	—
Deposits received for securities loaned		(4,245)		—		(4,245)		(4,229)		(16)

In accordance with ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, the gross obligations of deposits received for securities loaned was $93.3 million and $4.2 million for equity securities at December 31, 2018 and 2017, respectively. The remaining contractual maturities of these agreements were overnight and continuous.