Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)

3 Months Ended

Mar. 31, 2013

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions

Schedule of derivatives not designated as hedging instruments

The following table presents derivatives not designated as hedging instruments as of March 31, 2013, and periodic changes in the values of the interest rate swaps are reported in other noninterest income.  Periodic changes in the value of the forward contracts related to mortgage loan origination are reported in the net gain on sales of mortgage loans.

			Asset Derivaties			Liability Derivatives
	Notional or Contractual Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swap contracts net of credit valuation	$	91,879	Other Assets	$	1,164	Other Liabilities	$	1,197
Commitments1	233,514		Other Assets	492		N/A	-
Forward contracts2	27,000		N/A	-		Other Liabilities	-
Total				$	1,656		$	1,197

1Includes unused loan commitments and interest rate lock commitments.

2Includes forward MBS contracts and forward loan contracts.

The following table presents derivatives not designated as hedging instruments as of December 31, 2012.

			Asset Derivatives			Liability Derivatives
	Notional or Contractual Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swap contracts net of credit valuation	$	82,097	Other Assets	$	1,302	Other Liabilities	$	1,349
Commitments1	226,135		Other Assets	567		N/A	-
Forward contracts2	28,000		N/A	-		Other Liabilities	5
Total				$	1,869		$	1,354

1Includes unused loan commitments and interest rate lock commitments.

2Includes forward MBS contracts.

Schedule of financial instrument Commitments

The following table is a summary of financial instrument commitments (in thousands):

	March 31, 2013						December 31, 2012
	Fixed		Variable		Total		Fixed		Variable		Total
Letters of credit:
Borrower:
Financial standby	$	5	$	3,488	$	3,493	$	5	$	3,378	$	3,383
Commercial standby	-		51		51		-		51		51
Performance standby	1,595		3,518		5,113		1,630		4,217		5,847
	1,600		7,057		8,657		1,635		7,646		9,281
Non-borrower:
Financial standby	-		-		-		-		-		-
Commercial standby	-		-		-		-		-		-
Performance standby	240		1,089		1,329		240		1,125		1,365
	240		1,089		1,329		240		1,125		1,365
Total letters of credit	$	1,840	$	8,146	$	9,986	$	1,875	$	8,771	$	10,646