DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Sep. 30, 2014

Notional Amounts of All Derivative Instruments

The following table summarizes the notional amounts of all derivative instruments:
	Notional Amounts
	As of		As of
	September 30,		December 31,
	2014		2013
	(In thousands)
Undesignated economic hedges:
Interest rate contracts:
Interest rate swap agreements	$	30,746	$	31,080
Written interest rate cap agreements		37,453		38,391
Purchased interest rate cap agreements		37,453		38,391
Forward Contracts:
Sale of TBA GNMA MBS pools		22,000		25,000
	$	127,652	$	132,862
Notional amounts are presented on a gross basis with no netting of offsetting exposure positions.

Summary of Fair Value of Derivative Instruments and Location in Statement of Financial Condition

The following table summarizes the fair value of derivative instruments and the location in the statement of financial condition:
	Asset Derivatives								Liability Derivatives
	Statement of		September 30,			December 31,					September 30,			December 31,
	Financial		2014			2013					2014			2013
	Condition Location		Fair Value			Fair Value			Statement of Financial Condition Location		Fair Value			Fair Value
	(In thousands)
Undesignated economic hedges:
Interest rate contracts:
Interest rate swap agreements		Other assets		$	67		$	162		Accounts payable and other liabilities		$	2,877		$	3,965
Written interest rate cap agreements		Other assets			-			-		Accounts payable and other liabilities			18			58
Purchased interest rate cap agreements		Other assets			18			58		Accounts payable and other liabilities			-			-
Forward Contracts:
Sales of TBA GNMA MBS pools		Other assets			17			174		Accounts payable and other liabilities			16			-
			$	102		$	394				$	2,911		$	4,023

Effect of Derivative Instruments on Statement of Income (Loss)

The following table summarizes the effect of derivative instruments on the statement of income (loss):
		Gain (or Loss)				Gain (or Loss)
	Location of Gain or (loss)	Quarter Ended				Nine-Month Period Ended
	Recognized in Income on	September 30,				September 30,
(In thousands)	Derivatives	2014		2013		2014		2013
		(In thousands)
Undesignated economic hedges:
Interest rate contracts:
Interest rate swap agreements used to hedge fixed-rate loans	Interest income - Loans	$	419	$	232	$	993	$	1,331
Written and purchased interest rate cap agreements	Interest income - Loans		-		-		-		9
Forward contracts:
Sales of TBA GNMA MBS pools	Mortgage banking activities		229		(1,444)		(173)		(578)
Total gain on derivatives		$	648	$	(1,212)	$	820	$	762

Summary of Interest Rate Swaps

		As of		As of
		September 30,		December 31,
		2014		2013
			(Dollars in thousands)
Pay fixed/receive floating :
Notional amount		$	30,746	$	31,080
Weighted-average receive rate at period end			1.84%		1.85%
Weighted-average pay rate at period end			6.77%		6.77%
Floating rates range from 167 to 187 basis points over 3-month LIBOR
	As of September 30, 2014, the Corporation has not entered into any derivative instrument containing credit-risk related contingent features.