Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Financial Instruments [Abstract]

Derivative financial instruments according to type of hedge designation

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	September 30, 2012
			Average
	Notional		Maturity		Fair
	Amount		(years)		Value
	(Dollars in thousands)
Cash Flow Hedges - Pay fixed interest-rate swap agreements	$	10,000		2.3	$	(835	)
No hedge designation
Mandatory commitments to sell mortgage loans	$	62,883		0.1	$	2,787
Rate-lock mortgage loan commitments		101,482		0.1		(1,475	)
Amended Warrant		2,504		6.2		(385	)
Total	$	166,869		0.2	$	927

Fair value of derivative instruments

The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented:

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	September 30,			December 31,			September 30,			December 31,
	2012			2011			2012			2011
	Balance			Balance			Balance			Balance
	Sheet	Fair		Sheet	Fair		Sheet	Fair		Sheet	Fair
	Location	Value		Location	Value		Location	Value		Location	Value
	(In thousands)
Derivatives designated as hedging instruments
Pay-fixed interest rate swap agreements							Other liabilities	$	835	Other liabilities	$	1,103
Total									835			1,103
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	$	2,787	Other assets	$	857
Mandatory commitments to sell mortgage loans	Other assets		-			-			1,475	Other liabilities		606
Amended Warrant			-			-	Other liabilities		385	Other liabilities		174
Total			2,787			857			1,860			780
Total derivatives		$	2,787		$	857		$	2,695		$	1,883

Effect of derivative financial instruments on condensed consolidated statement of operation

The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows:

Three Month Periods Ended September 30,
							Location of
							Gain (Loss)
							Reclassified
							from
	Gain (Loss)						Accumulated	Gain (Loss)
	Recognized in						Other	Reclassified from
	Other						Comprehensive	Accumulated Other
	Comprehensive						Income into	Comprehensive						Location of	Gain (Loss)
	Income (Loss)						Income	Loss into Income						Gain (Loss)	Recognized
	(Effective Portion)						(Effective	(Effective Portion)						Recognized	in Income
	2012			2011			Portion)	2012			2011			in Income (1)	2012			2011
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	(54	)	$	(215	)	Interest expense	$	(237	)	$	(345	)		$	-		$	3
Interest-rate cap agreements		-			-		Interest expense		-			-				-			-
Total	$	(54	)	$	(215	)		$	(237	)	$	(345	)		$	-		$	3
No hedge designation
Rate-lock mortgage loan commitments														Net mortgage loan gains	$	804		$	369
Mandatory commitments to sell mortgage loans														Net mortgage loan gains		(779	)		(339	)
Amended warrant														(Increase) decrease in fair value of U.S. Treasury warrant		(32	)		29
Total															$	(7	)	$	59

(1) For cash flow hedges, this location and amount refers to the ineffective portion.

Nine Month Periods Ended September 30,
							Location of
							Gain (Loss)
							Reclassified
							from
	Gain (Loss)						Accumulated	Gain (Loss)
	Recognized in						Other	Reclassified from
	Other						Comprehensive	Accumulated Other
	Comprehensive						Income into	Comprehensive						Location of	Gain (Loss)
	Income (Loss)						Income	Loss into Income						Gain (Loss)	Recognized
	(Effective Portion)						(Effective	(Effective Portion)						Recognized	in Income
	2012			2011			Portion)	2012			2011			in Income (1)	2012			2011
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	(129	)	$	(508	)	Interest expense	$	(833	)	$	(1,102	)		$	-		$	-
Interest-rate cap agreements		-			30		Interest  expense		-			(15	)			-			-
Total	$	(129	)	$	(478	)		$	(833	)	$	(1,117	)		$	-		$	-
No hedge designation
Rate-lock mortgage loan commitments														Net mortgage loan gains	$	1,930		$	468
Mandatory commitments to sell mortgage loans														Net mortgage loan gains		(869	)		(1,635	)
Amended warrant														(Increase) decrease in fair value of U.S. Treasury warrant		(211	)		1,025
Total															$	850		$	(142	)

(1) For cash flow hedges, this location and amount refers to the ineffective portion.