Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 2014
			Average
	Notional		Maturity		Fair
	Amount		(years)		Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	21,138		0.1	$	590
Mandatory commitments to sell mortgage loans		42,308		0.1		(226	)
Pay-fixed interest rate swap agreements		2,359		9.7		(99	)
Pay-variable interest rate swap agreements		2,359		9.7		99
U.S. Treasury short position		13,000		0.6		52
Total	$	81,164		0.7	$	416
	December 31, 2013
			Average
	Notional		Maturity		Fair
	Amount		(years)		Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	15,754		0.1	$	366
Mandatory commitments to sell mortgage loans		35,412		0.1		128
Total	$	51,166		0.1	$	494

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
	June 30,			December 31,			June 30,			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	$	590	Other assets	$	366	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		128	Other liabilities		226	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		-	Other assets		-	Other liabilities		99	Other liabilities		-
Pay-variable interest rate swap agreements	Other assets		99	Other assets		-	Other liabilities		-	Other liabilities		-
U.S. Treasury short position	Other assets		52	Other assets		-	Other liabilities		-	Other liabilities		-
Total derivatives		$	741		$	494		$	325		$	-

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 June 30,
						Location of
						Gain (Loss)
						Reclassified
						from
	Gain (Loss)					Accumulated	Gain (Loss)
	Recognized in					Other	Reclassified from
	Other					Comprehensive	Accumulated Other
	Comprehensive					Loss into	Comprehensive						Location of	Gain (Loss)
	Income (Loss)					Income	Loss into Income						Gain (Loss)	Recognized
	(Effective Portion)					(Effective	(Effective Portion)						Recognized	in Income (1)
	2014		2013			Portion)	2014			2013			in Income (1)	2014			2013
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	-	$	(35	)	Interest expense	$	(95	)	$	(114	)		$	-		$	-
Total	$	-	$	(35	)		$	(95	)	$	(114	)		$	-		$	-
No hedge designation
Rate-lock mortgage loan commitments													Net mortgage loan gains	$	238		$	(783	)
Mandatory commitments to sell mortgage loans													Net mortgage loan gains		(271	)		2,185
Pay-fixed interest rate swap agreements													Interest income		(99	)		-
Pay-variable interest rate swap agreements													Interest income		99			-
U.S. Treasury short position													Gain on securities		52			-
Amended warrant													Increase in fair value of U.S. Treasury warrant		-			20
Total														$	19		$	1,422

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

Six Month Periods Ended June 30,
						Location of
						Gain (Loss)
						Reclassified
						from
	Gain (Loss)					Accumulated	Gain (Loss)
	Recognized in					Other	Reclassified from
	Other					Comprehensive	Accumulated Other
	Comprehensive					Loss into	Comprehensive						Location of	Gain (Loss)
	Income (Loss)					Income	Loss into Income						Gain (Loss)	Recognized
	(Effective Portion)					(Effective	(Effective Portion)						Recognized	in Income (1)
	2014		2013			Portion)	2014			2013			in Income (1)	2014			2013
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	-	$	(38	)	Interest expense	$	(190	)	$	(208	)		$	-		$	-
Total	$	-	$	(38	)		$	(190	)	$	(208	)		$	-		$	-
No hedge designation
Rate-lock mortgage loan commitments													Net mortgage loan gains	$	224		$	(992	)
Mandatory commitments to sell mortgage loans													Net mortgage loan gains		(354	)		2,121
Pay-fixed interest rate swap agreements													Interest income		(99	)		-
Pay-variable interest rate swap agreements													Interest income		99			-
U.S. Treasury short position													Gain on securities		52			-
Amended warrant													Increase in fair value of U.S. Treasury warrant		-			(1,025	)
Total														$	(78	)	$	104

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