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Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | 9 Months Ended
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Sep. 30, 2021
RESALE AND REPURCHASE AGREEMENTS [Abstract] |
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | Assets Purchased under Resale Agreements and Sold under Repurchase Agreements Assets Purchased under Resale Agreements In resale agreements, the Company is exposed to credit risk for both counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is also the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both September 30, 2021 and December 31, 2020. Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $1.34 billion and $1.16 billion as of September 30, 2021 and December 31, 2020, respectively. The weighted-average yields were 1.50% and 1.72% for the three months ended September 30, 2021 and 2020, respectively; and 1.53% and 2.09% for the nine months ended September 30, 2021 and 2020, respectively. Loans Purchased under Resale Agreements — The Company participated in resale agreements collateralized with loans with multiple counterparties starting in the fourth quarter of 2020. Total loans purchased under resale agreements were $1.26 billion and $300.0 million as of September 30, 2021 and December 31, 2020, respectively. The weighted-average yields were 1.48% and 1.57% for the three and nine months ended September 30, 2021, respectively. Assets Sold under Repurchase Agreements — As of September 30, 2021 and December 31, 2020, securities sold under the repurchase agreements consisted of U.S. Treasury securities and U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities. Gross repurchase agreements were $300.0 million as of both September 30, 2021 and December 31, 2020. The weighted-average interest rates were 2.57% and 2.70% for the three months ended September 30, 2021 and 2020, respectively, and 2.62% and 3.64% for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, all repurchase agreements will mature in 2023. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master netting agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting Repurchase and Reverse Repurchase Agreements. Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by the third-party trustees. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020:
($ in thousands) |  | September 30, 2021
Assets |  | Gross Amounts of Recognized Assets |  | Gross Amounts Offset on the Consolidated Balance Sheet |  | Net Amounts of Assets Presented on the Consolidated Balance Sheet |  | Gross Amounts Not Offset on the Consolidated Balance Sheet |  | Net Amount
|  |  |  | Collateral Received |
Resale agreements |  | $ | 2,596,142 |  |  | $ | — |  |  | $ | 2,596,142 |  |  | $ | (2,580,187) |  | (1) | $ | 15,955 |
Liabilities |  | Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset on the Consolidated Balance Sheet |  | Net Amounts of Liabilities Presented on the Consolidated Balance Sheet |  | Gross Amounts Not Offset on the Consolidated Balance Sheet |  | Net Amount
|  |  |  | Collateral Pledged |
Repurchase agreements |  | $ | 300,000 |  |  | $ | — |  |  | $ | 300,000 |  |  | $ | (300,000) |  | (2) | $ | — |
($ in thousands) |  | December 31, 2020
|  | Gross Amounts of Recognized Assets |  | Gross Amounts Offset on the Consolidated Balance Sheet |  | Net Amounts of Assets Presented on the Consolidated Balance Sheet |  | Gross Amounts Not Offset on the Consolidated Balance Sheet |  |
Assets |  |  |  |  |  | Net Amount
|  |  |  | Collateral Received |
Resale agreements |  | $ | 1,460,000 |  |  | $ | — |  |  | $ | 1,460,000 |  |  | $ | (1,458,700) |  | (1) | $ | 1,300 |
Liabilities |  | Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset on the Consolidated Balance Sheet |  | Net Amounts of Liabilities Presented on the Consolidated Balance Sheet |  | Gross Amounts Not Offset on the Consolidated Balance Sheet |  |
|  |  |  |  | Net Amount
|  |  |  | Collateral Pledged |
Repurchase agreements |  | $ | 300,000 |  |  | $ | — |  |  | $ | 300,000 |  |  | $ | (300,000) |  | (2) | $ | — |
(1)Represents the fair value of securities and loans the Company has received under resale agreements, limited to the amount of the recognized asset due from each counterparty for presentation purposes. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (2)Represents the fair value of securities the Company has pledged under repurchase agreements, limited to the amount of the recognized liability due to each counterparty for presentation purpose. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives. Refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.

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- Definition RESALE AND REPURCHASE AGREEMENTS [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for repurchase agreements (also known as repos), resale agreements (also known as reverse repurchase agreements or reverse repos), securities borrowed transactions, and securities loaned transactions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 + Details
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