12.

BALANCE SHEET OFFSETTING

Assets and liabilities relating to certain financial instruments, including, derivatives and securities sold under repurchase agreements (“repurchase agreements”), may be eligible for offset in the condensed consolidated balance sheets as permitted under accounting guidance. As noted above, our interest rate swap derivatives are subject to a master netting arrangement with one counterparty bank. Our interest rate swap derivatives require the Company to pledge investment securities as collateral based on certain risk thresholds. Investment securities that have been pledged by the Company to the counterparty bank continue to be reported in the Company’s condensed consolidated balance sheets unless the Company defaults. We offer a repurchase agreement product to our customers, which include master netting agreements that allow for the netting of collateral positions. This product, known as Citizens Sweep Manager, sells certain of our securities overnight to our customers under an agreement to repurchase them the next day. The repurchase agreements are not offset in the condensed consolidated balances.


	Gross Amounts Recognized in the Condensed		Gross Amounts offset in the Condensed			Net Amounts of Assets Presented in the Condensed		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	Consolidated		Consolidated			Consolidated		Financial		Collateral
	Balance Sheets		Balance Sheets			Balance Sheets		Instruments		Pledged			Net Amount
	(Dollars in thousands)
September 30, 2015
Financial assets:
Derivatives not designated as hedging instruments	$	11,694	$	-		$	-	$	11,694	$	-		$	11,694

Total	$	11,694	$	-		$	-	$	11,694	$	-		$	11,694


Financial liabilities:
Derivatives not designated as hedging instruments	$	11,694	$	-		$	11,694	$	-	$	(16,581	)	$	(4,887	)
Repurchase agreements		610,174		-			610,174		-		(673,853	)		(63,679	)

Total	$	621,868	$	-		$	621,868	$	-	$	(690,434	)	$	(68,566	)


December 31, 2014
Financial assets:
Derivatives not designated as hedging instruments	$	10,080	$	-		$	-	$	10,080	$	-		$	10,080

Total	$	10,080	$	-		$	-	$	10,080	$	-		$	10,080


Financial liabilities:
Derivatives not designated as hedging instruments	$	10,200	$	(120	)	$	10,080	$	120	$	(16,734	)	$	(6,534	)
Repurchase agreements		563,627		-			563,627		-		(624,578	)		(60,951	)

Total	$	573,827	$	(120	)	$	573,707	$	120	$	(641,312	)	$	(67,485	)