DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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 at December 31 follow:

	2012
	Notional Amount		Average Maturity (Years)		Fair Value
	(Dollars in thousands)
Cash flow hedge - pay-fixed interest-rate swap agreements	$	10,000		2.0	$	(739	)
No hedge designation
Rate-lock mortgage loan commitments	$	40,221		0.1	$	1,368
Mandatory commitments to sell mortgage loans		88,325		0.1		(122	)
Amended Warrant		2,504		6.0		(459	)
Total	$	131,050		0.2	$	787

	2011
	Notional Amount		Average Maturity (Years)		Fair Value
	(Dollars in thousands)
Cash flow hedge - pay-fixed interest-rate swap agreements	$	20,000		1.7	$	(1,103	)
No hedge designation
Rate-lock mortgage loan commitments	$	32,689		0.1	$	857
Mandatory commitments to sell mortgage loans		75,960		0.1		(606	)
Amended Warrant		2,504		7.0		(174	)
Total	$	111,153		0.3	$	77

Fair value of derivative instruments

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	December 31,						December 31,
	2012			2011			2012			2011
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Derivatives designated as hedging instruments
Pay-fixed interest rate swap agreements		$	-		$	-	Other liabilities	$	739	Other liabilities	$	1,103
Total			-			-			739			1,103
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		1,368	Other assets		857			-			-
Mandatory commitments to sell mortgage loans			-	Other assets		-	Other liabilities		122			606
Amended Warrant			-			-	Other liabilities		459	Other liabilities		174
Total			1,368			857			581			780
Total derivatives		$	1,368		$	857		$	1,320		$	1,883

Effect of derivative financial instruments on consolidated statement of operation

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

Year Ended December 31,
	Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)									Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)into Income (Effective Portion)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)									Location of Gain (Loss) Recognized in Income (1)	Gain (Loss) Recognized in Income(1)
	2012			2011			2010				2012			2011			2010				2012			2011			2010
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	(127	)	$	(512	)	$	(1,525	)	Interest expense	$	(927	)	$	(1,443	)	$	(2,742	)	Interest expense	$	-		$	-		$	-
Interest-rate cap agreements		-			30			180		Interest expense		-			(15	)		(90	)	Interest expense		-			-			2
Total	$	(127	)	$	(482	)	$	(1,345	)		$	(927	)	$	(1,458	)	$	(2,832	)		$	-		$	-		$	2
No hedge designation
Pay-fixed interest rate swap agreements																				Interest expense	$	-		$	-		$	409
Rate-lock mortgage loan commitments																				Mortgage loan gains		511			457			183
Mandatory commitments to sell mortgage loans																				Mortgage loan gains		484			(1,981	)		660
Amended Warrant																				Decrease in fair value of U.S. Treasury warrant		(285	)		1,137			393
Total																					$	710		$	(387	)	$	1,645

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