Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	34,318		0.1	$	1,017
Mandatory commitments to sell mortgage loans		68,023		0.1		(166	)
Pay-fixed interest rate swap agreements		50,226		8.0		359
Pay-variable interest rate swap agreements		50,226		8.0		(359	)
Purchased options		3,119		4.3		307
Written options		3,119		4.3		(307	)
Total	$	209,031		4.0	$	851

	December 31, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	26,658		0.1	$	646
Mandatory commitments to sell mortgage loans		61,954		0.1		630
Pay-fixed interest rate swap agreements		46,121		8.6		249
Pay-variable interest rate swap agreements		46,121		8.6		(249	)
Purchased options		3,119		4.5		238
Written options		3,119		4.5		(238	)
Total	$	187,092		4.4	$	1,276

Fair value of derivative instruments

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	March 31, 2017			December 31, 2016			March 31, 2017			December 31, 2016
	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	$	1,017	Other assets	$	646	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		630	Other liabilities		166	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		590	Other assets		493	Other liabilities		231	Other liabilities		244
Pay-variable interest rate swap agreements	Other assets		231	Other assets		244	Other liabilities		590	Other liabilities		493
Purchased options	Other assets		307	Other assets		238	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		307	Other liabilities		238
Total derivatives		$	2,145		$	2,251		$	1,294		$	975

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 March 31,
	Recognized in Income	2017			2016
		(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	371		$	219
Mandatory  commitments to sell mortgage loans	Net gains on mortgage  loans		(796	)		(206	)
Pay-fixed interest rate  swap agreements	Interest income		110			(1,118	)
Pay-variable interest rate swap agreements	Interest income		(110	)		1,118
Purchased options	Interest expense		69			78
Written options	Interest expense		(69	)		(78	)
Total		$	(425	)	$	13