XML 34 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
DERIVATIVE FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS  
DERIVATIVE FINANCIAL INSTRUMENTS

15.DERIVATIVE FINANCIAL INSTRUMENTS

 

Mortgage loan commitments

 

The Bank enters into commitments to originate mortgage loans for sale and uses forward commitments to sell such loans, both of which represent derivative instruments. These instruments involve both credit and market risk.

 

Commitments to originate loans require the Bank to originate a loan at an interest rate that may or may not be fixed upon completion of various underwriting requirements. At December 31, 2016 and 2015, the Bank had no outstanding commitments to grant mortgage loans that are intended to be sold.

 

Forward commitments to sell loans require the Bank to make delivery of loans at a specific future date, of a specified amount, at a specified price or yield. There were no such commitments at December 31, 2016 and 2015.