Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

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:

	March 31, 2013
			Average
	Notional		Maturity		Fair
	Amount		(years)		Value
	(Dollars in thousands)
Cash Flow Hedges - Pay fixed interest-rate swap agreements	$	10,000		1.8	$	(648	)
No hedge designation
Mandatory commitments to sell mortgage loans	$	76,941		0.1	$	(186	)
Rate-lock mortgage loan commitments		39,392		0.1		1,159	)
Amended Warrant		2,504		5.7		(1,504	)
Total	$	118,837		0.2	$	(531	)

Fair value of derivative instruments

Fair Values of Derivative Instruments

Asset Derivatives

Liability Derivatives

March 31,

December 31,

March 31,

December 31,

2013

2012

2013

2012

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

Other

Other

swap agreements

liabilities

$

648

liabilities

$

739

Total

648

739

Derivatives not designated

as hedging instruments

Rate-lock mortgage

Other

Other

loan commitments

assets

$

1,159

assets

1,368

Mandatory commitments

Other

Other

to sell mortgage loans

-

-

liabilities

186

liabilities

122

Other

Other

Amended Warrant

-

-

liabilities

1,504

liabilities

459

Total

1,159

1,368

1,690

581

Total derivatives

$

1,159

$

1,368

$

2,338

$

1,320

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 March 31,
							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
	2013			2012			Portion)	2013			2012			in Income (1)	2013			2012
	(In thousands)
Cash Flow Hedges
Pay-fixed interest
rate swap							Interest
agreements	$	(3	)	$	(51	)	expense	$	(94	)	$	(330	)		$	-		$	-
Interest-rate cap							Interest
agreements		-			-		expense		-			-				-			-
Total	$	(3	)	$	(51	)		$	(94	)	$	(330	)		$	-		$	-
No hedge designation
Rate-lock mortgage														Net mortgage
loan commitments														loan gains	$	(209	)	$	843
Mandatory
commitments to														Net mortgage
sell mortgage loans														loan gains		(64	)		614
														Increase in
														fair value of
														U.S. Treasury
Amended warrant														warrant		(1,045	)		(154	)
Total															$	(1,318	)	$	1,303

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