Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	31,760		0.1	$	1,163
Mandatory commitments to sell mortgage loans		67,672		0.1		(283	)
Pay-fixed interest rate swap agreements		48,623		8.8		(2,009	)
Pay-variable interest rate swap agreements		48,623		8.8		2,009
Purchased options		3,119		4.8		216
Written options		3,119		4.8		(216	)
Total	$	202,916		4.4	$	880

	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
	September 30, 2016			December 31, 2015			September 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	$	1,163	Other assets	$	550	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		69	Other liabilities		283	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		-	Other assets		-	Other liabilities		2,009	Other liabilities		497
Pay-variable interest rate swap agreements	Other assets		2,009	Other assets		497	Other liabilities		-	Other liabilities		-
Purchased options	Other assets		216	Other assets		122	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		216	Other liabilities		122
Total derivatives		$	3,388		$	1,238		$	2,508		$	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:

		Gain (Loss) Recognized in Income
	Location of Gain (Loss)	Three Month Periods Ended September 30,						Nine Month Periods Ended September 30,
	Recognized in Income	2016			2015			2016			2015
		(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	264		$	281		$	613		$	386
Mandatory commitments to sell mortgage loans	Net gains on mortgage loans		94			(745	)		(352	)		(225	)
Pay-fixed interest rate swap agreements	Interest income		196			(452	)		(1,512	)		(492	)
Pay-variable interest rate swap agreements	Interest income		(196	)		452			1,512			492
Purchased options	Interest expense		13			126			94			126
Written options	Interest expense		(13	)		(126	)		(94	)		(126	)
Total		$	358		$	(464	)	$	261		$	161