Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	23,854		0.1	$	769
Mandatory commitments to sell mortgage loans		50,127		0.1		(137	)
Pay-fixed interest rate swap agreements		42,933		9.5		(1,615	)
Pay-variable interest rate swap agreements		42,933		9.5		1,615
Purchased options		2,803		5.3		200
Written options		2,803		5.3		(200	)
Total	$	165,453		5.2	$	632

	December 31, 2015
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	20,581		0.1	$	550
Mandatory commitments to sell mortgage loans		46,320		0.1		69
Pay-fixed interest rate swap agreements		27,587		8.0		(497	)
Pay-variable interest rate swap agreements		27,587		8.0		497
Purchased options		2,098		5.7		122
Written options		2,098		5.7		(122	)
Total	$	126,271		3.7	$	619

Fair value of derivative instruments

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	March 31, 2016			December 31, 2015			March 31, 2016			December 31, 2015
	Balance  Sheet  Location	Fair Value		Balance  Sheet  Location	Fair Value		Balance  Sheet  Location	Fair Value		Balance  Sheet  Location	Fair Value
	(In thousands)
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	$	769	Other assets	$	550	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		69	Other liabilities		137	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		-	Other assets		-	Other liabilities		1,615	Other liabilities		497
Pay-variable interest rateswap agreements	Other assets		1,615	Other assets		497	Other liabilities		-	Other liabilities		-
Purchased options	Other assets		200	Other assets		122	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		200	Other liabilities		122
Total derivatives		$	2,584		$	1,238		$	1,952		$	619

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)	Gain (Loss) Recognized in Income
	Recognized in Income	2016			2015
		(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	219		$	388
Mandatory  commitments to sell mortgage loans	Net gains on mortgage loans		(206	)		(39	)
Pay-fixed interest rate  swap agreements	Interest income		(1,118	)		(261	)
Pay-variable interest rate swap agreements	Interest income		1,118			261
Purchased options	Interest expense		78			-
Written options	Interest expense		(78	)		-
Total		$	13		$	349