Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014
			Average
	Notional		Maturity		Fair
	Amount		(years)		Value
	(Dollars in thousands)
No hedge designation
Mandatory commitments to sell mortgage loans	$	28,936		0.1	$	45
Rate-lock mortgage loan commitments		15,234		0.1		352
Total	$	44,170		0.1	$	397

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

March 31,

December 31,

March 31,

December 31,

2014

2013

2014

2013

Balance

Balance

Balance

Balance

Sheet

Fair

Sheet

Fair

Sheet

Fair

Sheet

Fair

Location

Value

Location

Value

Location

Value

Location

Value

(In thousands)

Derivatives not designated as hedging instruments

Rate-lock mortgage loan commitments

Other assets

$

352

Other  assets

$

366

Other liabilities

$

-

Other  liabilities

$

-

Mandatory commitments to sell mortgage loans

Other assets

45

Other assets

128

Other liabilities

-

Other liabilities

-

Total derivatives

$

397

$

494

$

-

$

-

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
	2014		2013			Portion)	2014			2013			in Income (1)	2014			2013
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	-	$	(3	)	Interest expense	$	(95	)	$	(94	)		$	-		$	-
Total	$	-	$	(3	)		$	(95	)	$	(94	)		$	-		$	-
No hedge designation
Rate-lock mortgage loan commitments													Net mortgage loan gains	$	(14	)	$	(209	)
Mandatory commitments to sell mortgage loans													Net mortgage loan gains		(83	)		(64	)
Amended warrant													Increase in fair value of U.S. Treasury warrant		-			(1,045	)
Total														$	(97	)	$	(1,318	)

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