Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2026

20. Balance Sheet Offsetting

Certain financial instruments, including resale and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company’s accounting policy is to present required disclosures related to collateral and derivative positions on a gross basis.

The following tables present the assets and liabilities subject to enforceable master netting arrangements, repurchase agreements, or similar agreements with offsetting rights (in thousands).


											Gross Amounts Not Offset in
								Net Amounts			the Balance Sheet
		Gross Amounts			Gross Amounts			of Assets						Cash
		of Recognized			Offset in the			Presented in the			Financial			Collateral			Net
		Assets			Balance Sheet			Balance Sheet			Instruments			Pledged			Amount
June 30, 2026
Securities borrowed:
Institutional counterparties		$	1,469,831		$	—		$	1,469,831		$	(1,413,220)		$	—		$	56,611

Interest rate swaps:
Institutional counterparties			29,012			—			29,012			—			(26,930)			2,082

Reverse repurchase agreements:
Institutional counterparties			112,496			—			112,496			(111,952)			—			544

Forward MBS derivatives:
Institutional counterparties			6,082			—			6,082			(806)			—			5,276
		$	1,617,421		$	—		$	1,617,421		$	(1,525,978)		$	(26,930)		$	64,513
December 31, 2025
Securities borrowed:
Institutional counterparties		$	1,501,548		$	—		$	1,501,548		$	(1,425,084)		$	—		$	76,464

Interest rate swaps:
Institutional counterparties			27,370			—			27,370			—			(24,380)			2,990

Credit default swaps:
Institutional counterparties			7			—			7			—			—			7

Reverse repurchase agreements:
Institutional counterparties			55,977			—			55,977			(55,601)			—			376

Forward MBS derivatives:
Institutional counterparties			7,852			—			7,852			(253)			—			7,599
		$	1,592,754		$	—		$	1,592,754		$	(1,480,938)		$	(24,380)		$	87,436


										Gross Amounts Not Offset in
								Net Amounts		the Balance Sheet
		Gross Amounts			Gross Amounts			of Liabilities				Cash
		of Recognized			Offset in the			Presented in the		Financial		Collateral		Net
		Liabilities			Balance Sheet			Balance Sheet		Instruments		Pledged		Amount
June 30, 2026
Securities loaned:
Institutional counterparties		$	1,469,829		$	—		$	1,469,829	$	(1,411,272)	$	—	$	58,557

Interest rate swaps:
Institutional counterparties			2,120			—			2,120		—		—		2,120

Repurchase agreements:
Institutional counterparties			382,586			—			382,586		(382,586)		—		—

Forward MBS derivatives:
Institutional counterparties			7,562			—			7,562		(806)		(748)		6,008
		$	1,862,097		$	—		$	1,862,097	$	(1,794,664)	$	(748)	$	66,685
December 31, 2025
Securities loaned:
Institutional counterparties		$	1,495,133		$	—		$	1,495,133	$	(1,418,288)	$	—	$	76,845

Interest rate swaps:
Institutional counterparties			2,943			—			2,943		—		—		2,943

Repurchase agreements:
Institutional counterparties			268,805			—			268,805		(268,805)		—		—

Forward MBS derivatives:
Institutional counterparties			6,885			—			6,885		(253)		(1,795)		4,837
		$	1,773,766		$	—		$	1,773,766	$	(1,687,346)	$	(1,795)	$	84,625

Secured Borrowing Arrangements

Secured Borrowings (Repurchase Agreements) — The Company participates in transactions involving securities sold under repurchase agreements, which are secured borrowings and generally mature one to ninety days from the transaction date or involve arrangements with no definite termination date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transactions. The Company may be required to provide additional collateral based on the fair value of the underlying securities, which is monitored on a daily basis.

Securities Lending Activities — The Company’s securities lending activities include lending securities for other broker-dealers, lending institutions and its own clearing and retail operations. These activities involve lending securities to other broker-dealers to cover short sales, to complete transactions in which there has been a failure to deliver securities by the required settlement date and as a conduit for financing activities.

When lending securities, the Company receives cash or similar collateral and generally pays interest (based on the amount of cash deposited) to the other party to the transaction. Securities lending transactions are executed pursuant to written agreements with counterparties that generally require securities loaned to be marked-to-market on a daily basis. The Company receives collateral in the form of cash in an amount generally in excess of the fair value of securities loaned. The Company monitors the fair value of securities loaned on a daily basis, with additional collateral obtained or refunded, as necessary. Collateral adjustments are made on a daily basis through the facilities of various clearinghouses. The Company is a principal in these securities lending transactions and is liable for losses in the event of a failure of any other party to honor its contractual obligation. Management sets credit limits with each counterparty and reviews these limits regularly to monitor the risk level with each counterparty. The Company is subject to credit risk through its securities lending activities if securities prices decline rapidly because the value of the Company’s collateral could fall below the amount of the indebtedness it secures. In rapidly appreciating markets, credit risk increases due to short positions. The Company’s securities lending business subjects the Company to credit risk if a counterparty fails to perform or if collateral securing its obligations is insufficient. In securities transactions, the Company is subject to credit risk during the period between the execution of a trade and the settlement by the customer.

The following tables present the remaining contractual maturities of repurchase agreement and securities lending transactions accounted for as secured borrowings (in thousands). The Company had no repurchase-to-maturity transactions outstanding at both June 30, 2026 and December 31, 2025.


	Remaining Contractual Maturities
	Overnight and						Greater Than
June 30, 2026	Continuous		Up to 30 Days		30-90 Days		90 Days		Total
Repurchase agreement transactions:
Asset-backed securities	$	121,649	$	246,230	$	—	$	—	$	367,879
Other		14,707		—		—		—		14,707

Securities lending transactions:
Corporate securities		52		—		—		—		52
Equity securities		1,469,777		—		—		—		1,469,777
Total	$	1,606,185	$	246,230	$	—	$	—	$	1,852,415

Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above									$	1,852,415
Amount related to agreements not included in offsetting disclosure above									$	—

	Remaining Contractual Maturities
	Overnight and						Greater Than
December 31, 2025	Continuous		Up to 30 Days		30-90 Days		90 Days		Total
Repurchase agreement transactions:
Asset-backed securities	$	61,704	$	204,993	$	—	$	—	$	266,697
Other		2,108		—		—		—		2,108

Securities lending transactions:
Corporate securities		52		—		—		—		52
Equity securities		1,495,081		—		—		—		1,495,081
Total	$	1,558,945	$	204,993	$	—	$	—	$	1,763,938

Gross amount of recognized liabilities for repurchase agreement and securities lending transactions in offsetting disclosure above									$	1,763,938
Amount related to agreements not included in offsetting disclosure above									$	—