Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2017
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Cash flow hedge - pay-fixed interest rate swap agreement	$	15,000		3.9	$	105
No hedge designation
Rate-lock mortgage loan commitments	$	36,580		0.1	$	769
Mandatory commitments to sell mortgage loans		74,750		0.1		26
Pay-fixed interest rate swap agreements		52,586		7.1		52
Pay-variable interest rate swap agreements		52,586		7.1		(52	)
Purchased options		3,119		3.8		277
Written options		3,119		3.8		(277	)
Total	$	222,740		3.5	$	795

	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
September 30, 2017	December 31, 2016	September 30, 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 designated as hedging instruments
Pay-fixed interest rate swap agreements	Other assets	$	105	Other assets	$	-	Other  liabilities	$	-	Other liabilities	$	-
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		769	Other assets		646	Other liabilities		-	Other liabilities		-
Mandatory commitments to sell mortgage loans	Other assets		26	Other assets		630	Other liabilities		-	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		424	Other assets		493	Other liabilities		372	Other liabilities		244
Pay-variable interest rate swap agreements	Other assets		372	Other assets		244	Other liabilities		424	Other liabilities		493
Purchased options	Other assets		277	Other assets		238	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other  assets		-	Other liabilities		277	Other liabilities		238
Total			1,868			2,251			1,073			975
Total derivatives		$	1,973		$	2,251		$	1,073		$	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:

Three Month Periods Ended September 30,
	Gain Recognized in Other Comprehensive Income (Effective Portion)						Location of  Gain (Loss)  Reclassified  from  Accumulated  Other  Comprehensive  Loss into  Income  (Effective	Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)							Location of  Gain (Loss)  Recognized	Gain (Loss) Recognized in Income (1)
	2017			2016			Portion)	2017				2016			in Income (1)	2017			2016
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements		$	95		$	-	Interest expense		$	(5	)		$	-		$	5			$	-
Total		$	95		$	-			$	(5	)		$	-		$	5			$	-
No hedge designation
Rate-lock mortgage loan commitments															Net gains on on mortage loans	$	(313	)		$	264
Mandatory commitments to sell mortgage loans															Net gains on on mortage loans		2				94
Pay-fixed interest rate swap agreements															Interest income		52				196
Pay-variable interest rate swap agreements															Interest income		(52	)			(196	)
Purchased options															Interest expense		5				13
Written options															Interest expense		(5	)			(13	)
Total																$	(311	)		$	358

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

Nine Month Periods Ended September 30,
	Gain Recognized in Other Comprehensive Income (Effective Portion)				Location of  Gain (Loss)  Reclassified  from  Accumulated  Other  Comprehensive  Loss into  Income  (Effective	Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)					Location of  Gain (Loss)  Recognized  in Income (1)	Gain (Loss) Recognized in Income (1)
	2017		2016		Portion)	2017			2016			2017			2016
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements	$	95	$	-	Interest expense	$	(5	)	$	-		$	5		$	-
Total	$	95	$	-		$	(5	)	$	-		$	5		$	-
No hedge designation
Rate-lock mortgage loan commitments											Net gains on on mortage loans	$	123		$	613
Mandatory commitments to sell mortgage loans											Net gains on on mortage loans		(604	)		(352	)
Pay-fixed interest rate swap agreements											Interest income		(197	)		(1,512	)
Pay-variable interest rate swap agreements											Interest income		197			1,512
Purchased options											Interest expense		39			94
Written options											Interest expense		(39	)		(94	)
Total												$	(481	)	$	261

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