Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	June 30, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	26,831		0.1	$	899
Mandatory commitments to sell mortgage loans		57,034		0.1		(377	)
Pay-fixed interest rate swap agreements		44,396		9.1		(2,205	)
Pay-variable interest rate swap agreements		44,396		9.1		2,205
Purchased options		3,119		5.0		203
Written options		3,119		5.0		(203	)
Total	$	178,895		4.7	$	522

	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 Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	June 30, 2016			December 31, 2015			June 30, 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	$	899	Other assets	$	550	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		69	Other liabilities		377	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		-	Other assets		-	Other liabilities		2,205	Other liabilities		497
Pay-variable interest rate swap agreements	Other assets		2,205	Other assets		497	Other liabilities		-	Other liabilities		-
Purchased options	Other assets		203	Other assets		122	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		203	Other liabilities		122
Total derivatives		$	3,307		$	1,238		$	2,785		$	619

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

		Gain (Loss) Recognized in Income
	Location of Gain (Loss)	Three Month Periods Ended June 30,						Six Month Periods Ended June 30,
	Recognized in Income	2016			2015			2016			2015
		(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	130		$	(283	)	$	349		$	105
Mandatory commitments to sell mortgage loans	Net gains on mortgage loans		(240	)		559			(446	)		520
Pay-fixed interest rate swap agreements	Interest income		(590	)		221			(1,708	)		(40	)
Pay-variable interest rate swap agreements	Interest income		590			(221	)		1,708			40
Purchased options	Interest expense		3			-			81			-
Written options	Interest expense		(3	)		-			(81	)		-
Total		$	(110	)	$	276		$	(97	)	$	625