Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 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:

	September 30, 2018
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Cash flow hedge designation
Pay-fixed interest rate swap agreements	$	25,000		2.8	$	581
Interest rate cap agreements		130,000		3.6		3,391
	$	155,000		3.5	$	3,972
No hedge designation
Rate-lock mortgage loan commitments	$	44,609		0.1	$	884
Mandatory commitments to sell mortgage loans		65,633		0.1		182
Pay-fixed interest rate swap agreements - commercial		88,657		5.7		2,242
Pay-variable interest rate swap agreements - commercial		88,657		5.7		(2,242	)
Purchased options		3,119		2.8		178
Written options		3,119		2.8		(178	)
Total	$	293,794		3.5	$	1,066

	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:

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	September 30, 2018			December 31, 2017			September 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	$	581	Other assets	$	245	Other liabilities	$	-	Other liabilities	$	-
Interest rate cap agreements	Other assets		3,391	Other assets		976	Other liabilities		-	Other liabilities		-
			3,972			1,221			-			-
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		884	Other assets		530	Other liabilities		-	Other liabilities		-
Mandatory commitments to sell mortgage loans	Other assets		182	Other assets		37	Other liabilities		-	Other liabilities		-
Pay-fixed interest rate swap agreements - commercial	Other assets		2,380	Other assets		631	Other liabilities		138	Other liabilities		339
Pay-variable interest rate swap agreements - commercial	Other assets		138	Other assets		339	Other liabilities		2,380	Other liabilities		631
Purchased options	Other assets		178	Other assets		322	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		178	Otherliabilities		322
			3,762			1,859			2,696			1,292
Total derivatives		$	7,734		$	3,080		$	2,696		$	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 September 30,

	Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of  Gain (Loss)  Reclassified  from  Accumulated  Other  Comprehensive  Loss into  Income  (Effective  Portion)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)					Location of  Gain  Recognized  in Income (1)	Gain Recognized in Income (1)
	2018		2017			2018		2017				2018			2017
	(In thousands)
Cash Flow Hedges
Interest rate cap agreements	$	297	$	-	Interest expense	$	67	$	-		Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		92		95	Interest expense		6		(5	)	Interest expense		16			5
Total	$	389	$	95		$	73	$	(5	)		$	16		$	5
No hedge designation
Rate-lock mortgage loan commitments											Net gains on mortgage loans	$	(318	)	$	(313	)
Mandatory commitments to sell mortgage loans											Net gains on mortgage loans		415			2
Pay-fixed interest rate swap agreements - commercial											Interest income		407			52
Pay-variable interest rate swap agreements - commercial											Interest income		(407	)		(52	)
Purchased options											Interest expense		(45	)		5
Written options											Interest expense		45			(5	)
Total												$	97		$	(311	)

(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 (Loss) (Effective Portion)				Location of  Gain (Loss)  Reclassified  from  Accumulated  Other  Comprehensive  Loss into  Income  (Effective  Portion)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)					Location of  Gain  Recognized  in Income (1)	Gain Recognized in Income (1)
	2018		2017			2018		2017				2018			2017
	(In thousands)
Cash Flow Hedges
Interest rate cap agreements	$	1,054	$	-	Interest expense	$	119	$	-		Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		346		95	Interest expense		13		(5	)	Interest expense		4			5
Total	$	1,400	$	95		$	132	$	(5	)		$	4		$	5
No hedge designation
Rate-lock mortgage loan commitments											Net gains on mortgage loans	$	354		$	123
Mandatory commitments to sell mortgage loans											Net gains on mortgage loans		145			(604	)
Pay-fixed interest rate swap agreements - commercial											Interest income		1,950			(197	)
Pay-variable interest rate swap agreements - commercial											Interest income		(1,950	)		197
Purchased options											Interest expense		(144	)		39
Written options											Interest expense		144			(39	)
Total												$	499		$	(481	)

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