Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

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:

	June 30, 2018
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Cash flow hedge designation
Pay-fixed interest rate swap agreements	$	25,000		3.1	$	494
Interest rate cap agreements		90,000		3.3		2,235
	$	115,000		3.3	$	2,729
No hedge designation
Rate-lock mortgage loan commitments	$	55,093		0.1	$	1,202
Mandatory commitments to sell mortgage loans		87,640		0.1		(233	)
Pay-fixed interest rate swap agreements - commercial		83,867		5.9		1,835
Pay-variable interest rate swap agreements - commercial		83,867		5.9		(1,835	)
Pay-variable interest rate swap agreements		10,000		0.2		36
Purchased options		3,119		3.0		223
Written options		3,119		3.0		(223	)
Total	$	326,705		3.1	$	1,005

	December 31, 2017
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Cash flow hedge designation
Pay-fixed interest rate swap agreements	$	15,000		3.7	$	245
Interest rate cap agreements		45,000		3.5		976
	$	60,000		3.6	$	1,221
No hedge designation
Rate-lock mortgage loan commitments	$	25,032		0.1	$	530
Mandatory commitments to sell mortgage loans		56,127		0.1		37
Pay-fixed interest rate swap agreements - commercial		75,990		6.2		292
Pay-variable interest rate swap agreements - commercial		75,990		6.2		(292	)
Purchased options		3,119		3.5		322
Written options		3,119		3.5		(322	)
Total	$	239,377		4.1	$	567

Fair Value of Derivative Instruments

The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented:

	Asset Derivatives						Liability Derivatives
	June 30, 2018			December 31, 2017			June 30, 2018			December 31, 2017
	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	$	494	Other assets	$	245	Other liabilities	$	-	Other liabilities	$	-
Interest rate cap agreements	Other assets		2,235	Other assets		976	Other liabilities		-	Other liabilities		-
			2,729			1,221			-			-
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		1,202	Other assets		530	Other liabilities		-	Other liabilities		-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		37	Other liabilities		233	Other liabilities		-
Pay-fixed interest rate swap agreements - commercial	Other assets		1,976	Other assets		631	Other liabilities		141	Other liabilities		339
Pay-variable interest rate swap agreements - commercial	Other assets		141	Other assets		339	Other liabilities		1,976	Other liabilities		631
Pay-variable interest rate swap agreements	Other assets		36	Other assets		-	Other liabilities		-	Other liabilities		-
Purchased options	Other assets		223	Other assets		322	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		223	Other liabilities		322
			3,578			1,859			2,573			1,292
Total derivatives		$	6,307		$	3,080		$	2,573		$	1,292

Effect of Derivative Financial Instruments on Condensed Consolidated Statement of Operations

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

Three Month Periods Ended June 30,
	Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective	Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)				Location of Gain (Loss) Recognized	Gain (Loss) Recognized in Income (1)
	2018		2017		Portion)	2018		2017		in Income (1)	2018			2017
	(In thousands)
Cash Flow Hedges
Interest rate cap agreements	$	244	$	-	Interest expense	$	45	$	-	Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		83		-	Interest expense		8		-	Interest expense		(24	)		-
Total	$	327	$	-		$	53	$	-		$	(24	)	$	-
No hedge designation
Rate-lock mortgage loan commitments										Net gains on mortage loans	$	244		$	65
Mandatory commitments to sell mortgage loans										Net gains on mortage loans		(110	)		190
Pay-fixed interest rate swap agreements - commercial										Interest income		487			(359	)
Pay-variable interest rate swap agreements - commercial										Interest income		(487	)		359
Pay-variable interest rate swap agreements										Interest expense		36			-
Purchased options										Interest expense		(6	)		(35	)
Written options										Interest expense		6			35
Total											$	170		$	255

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

Six Month Periods Ended June 30,
	Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)	Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)				Location of Gain (Loss) Recognized in Income (1)	Gain (Loss) Recognized in Income (1)
	2018		2017			2018		2017			2018			2017
	(In thousands)
Cash Flow Hedges
Interest rate cap agreements	$	757	$	-	Interest expense	$	52	$	-	Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		254		-	Interest expense		7		-	Interest expense		(12	)		-
Total	$	1,011	$	-		$	59	$	-		$	(12	)	$	-
No hedge designation
Rate-lock mortgage loan commitments										Net gains on mortage loans	$	672		$	436
Mandatory commitments to sell mortgage loans										Net gains on mortage loans		(270	)		(606	)
Pay-fixed interest rate swap agreements - commercial										Interest income		1,543			(249	)
Pay-variable interest rate swap agreements - commercial										Interest income		(1,543	)		249
Pay-variable interest rate swap agreements										Interest expense		36			-
Purchased options										Interest expense		(99	)		34
Written options										Interest expense		99			(34	)
Total											$	438		$	(170	)

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