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Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | 12 Months Ended
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Dec. 31, 2021
RESALE AND REPURCHASE AGREEMENTS |
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 the 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 related to these agreements as of December 31, 2021 and 2020. Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $1.33 billion and $1.16 billion as of December 31, 2021 and 2020, respectively. The weighted-average yields were 1.53%, 1.94% and 2.66% for the years ended December 31, 2021, 2020 and 2019, respectively. Loans Purchased under Resale Agreements — The Company participated in resale agreements collateralized with loans starting in the fourth quarter of 2020. As of December 31, 2021 and 2020, total loans purchased under resale agreements were $1.02 billion and $300.0 million, respectively. The weighted-average yields were 1.53% and 2.27% for the years ended December 31, 2021 and 2020, respectively. Assets Sold under Repurchase Agreements — As of December 31, 2021, securities sold under the repurchase agreements consisted of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, and U.S. Treasury securities. Gross repurchase agreements were $300.0 million as of both December 31, 2021 and 2020, respectively. The weighted-average interest rates were 2.61%, 3.25% and 4.74% for the years ended December 31, 2021, 2020 and 2019, respectively. There were no extinguishment charges recorded in 2021 and 2019. In comparison, for the year ended December 31, 2020, the Company recorded $8.7 million of charges related to the extinguishment of $150.0 million of repurchase agreements. As of December 31, 2021, all repurchase agreements will mature in 2023. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master netting agreements that, in the event of default by the counterparty, provide the Company the right to liquidate assets held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. Collateral received includes assets that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of assets that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Collateral received or pledged in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and is usually delivered to and held by the third-party trustees. The collateral amounts received/pledged are limited for presentation purposes to the related recognized asset/liability balance for each counterparty, and accordingly, do not include excess collateral received/pledged. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of December 31, 2021 and 2020:
($ in thousands) |  | December 31, 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 |  | $ | 2,353,503 |  |  | $ | — |  |  | $ | 2,353,503 |  |  | $ | (2,327,687) |  | (1) | $ | 25,816 |
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
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 |  | $ | 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 assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. There was no netting of repurchase agreements against resale agreements for the year ended December 31, 2021. (2)Represents the fair value of assets the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. There was no netting of repurchase agreements against resale agreements for the year ended December 31, 2021. 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-K for additional information.

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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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