DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2011

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

Fair values of derivative instruments

The following table summarizes the fair value and balance sheet classification of derivative instruments as of September 30, 2011 and December 31, 2010. The notional amount of the contract is not recorded on the condensed consolidated balance sheets, but is used as the basis for determining the amount of interest payments to be exchanged between the counterparties. The valuation methodology of derivative instruments is disclosed in Note 3 to the Company's condensed consolidated financial statements presented elsewhere in this report.

	Fair Values of Derivative Instruments
	September 30, 2011						December 31, 2010
	Notional		Derivative		Derivative		Notional		Derivative		Derivative
	Amount		Assets (1)		Liabilities (1)		Amount		Assets (1)		Liabilities (1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swaps on certificates of deposit-fair value	$	100,000	$	1,658	$	-	$	-	$	-	$	-
Total derivatives designated as hedging instruments	$	100,000	$	1,658	$	-	$	-	$	-	$	-
Derivatives not designated as hedging instruments:
Equity swap agreements	$	22,709	$	200	$	203	$	22,884	$	206	$	210
Foreign exchange options		85,614		4,392		2,766		85,614		5,084		3,239
Interest rate swaps		410,898		16,133		17,237		4,098		13		14
Total derivatives not designated as hedging instruments	$	519,221	$	20,725	$	20,206	$	112,596	$	5,303	$	3,463

(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 nine months ended September 30, 2011 and 2010:

		Three Months Ended						Nine Months Ended
	Location in	September 30,						September 30,
	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	$	1,740		$	-		$	2,958		$	-
	Total net income	$	1,740		$	-		$	2,958		$	-
Derivatives not designated as hedging instruments
Equity swap agreements	Noninterest expense	$	(1	)	$	(74	)	$	2		$	(122	)
Foreign exchange options	Noninterest income		(211	)		533			(221	)		747
Foreign exchange options	Noninterest expense		(51	)		-			(1	)		-
Interest rate swaps	Noninterest income		(832	)		-			(1,102	)		-
	Total net (expense/loss) income/gain	$	(1,095	)	$	459		$	(1,322	)	$	625