DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2011

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

The following table summarizes the fair value and balance sheet classification of derivative instruments as of June 30, 2011 and December 31, 2010.

Fair Values of Derivative Instruments
	June 30, 2011						December 31, 2010
	Notional Amount		Derivative Assets(1)		Derivative Liabilities(1)		Notional Amount		Derivative Assets(1)		Derivative Liabilities(1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swaps on certificates of deposit-fair value	$	100,000	$	292	$	374	$	-	$	-	$	-
Total derivatives designated as hedging instruments	$	100,000	$	292	$	374	$	-	$	-	$	-

Derivatives not designated as hedging instruments:
Equity swap agreements	$	22,709	$	201	$	202	$	22,884	$	206	$	210
Foreign exchange options		85,614		4,932		3,045		85,614		5,084		3,239
Interest rate swaps		275,734		5,884		6,155		4,098		13		14
Short-term call option		235,099		-		850		-		-		-
Total derivatives not designated as hedging instruments	$	619,156	$	11,017	$	10,252	$	112,596	$	5,303	$	3,463

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(1)	Derivative assets, which are a component of other assets, include the estimated gain to settle a derivative contract. Derivative liabilities, which are a component of other liabilities and deposits, include the estimated loss to settle a derivative contract.

Gains (losses) on derivative instruments

The table below presents the effect of the Company's derivative financial instruments on the condensed consolidated statements of income for the three and six months ended June 30, 2011 and 2010:

		Three Months Ended June 30,						Six Months Ended June 30,
	Location in Condensed Consolidated Statements of Income	2011			2010			2011			2010
		(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps on certificates of deposit-fair value	Interest expense	$	1,218		$	-		$	1,218		$	-
	Total net income	$	1,218		$	-		$	1,218		$	-


Derivatives not designated as hedging instruments
Equity swap agreements	Noninterest expense	$	1		$	(52	)	$	3		$	(48	)
Foreign exchange options	Noninterest income		99			215			(10	)		214
Foreign exchange options	Noninterest expense		34			-			52			-
Interest rate swaps	Noninterest income		(210	)		-			(270	)		-
Short-term call option			-			-			-			-
	Total net (expense) income	$	(76	)	$	163		$	(225	)	$	166

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details