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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 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 at December 31 follow:


 
2018
 


 Notional
 Amount		  Average
Maturity
 (years)		  
Fair
 Value
 

 
(Dollars in thousands)
 
Cash flow hedge designation
         
Pay-fixed interest rate swap agreements
 
$
25,000
   
2.6
  
$
280
 
Interest rate cap agreements
  
150,000
   
3.6
   
2,245
 
Total
 
$
175,000
   
3.5
  
$
2,525
 
             
No hedge designation
            
Rate-lock mortgage loan commitments
 
$
32,473
   
0.1
  
$
687
 
Mandatory commitments to sell mortgage loans
  
57,583
   
0.1
   
(383
)
Pay-fixed interest rate swap agreements - commercial
  
94,451
   
5.5
   
405
 
Pay-variable interest rate swap agreements - commercial
  
94,451
   
5.5
   
(405
)
Purchased options
  
3,095
   
2.5
   
116
 
Written options
  
3,095
   
2.5
   
(116
)
Total
 
$
285,148
   
3.7
  
$
304
 

  
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
 
Total
 
$
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
Fair Values of Derivative Instruments


Asset Derivatives
 
Liability Derivatives
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
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
 
$
280
 
Other assets
 
$
245
 
Other liabilities
 
$
-
 
Other liabilities
 
$
-
 
Interest rate cap agreements
Other assets
  
2,245
 
Other assets
  
976
 
Other liabilities
  
-
 Other liabilities  
-
 
    
$
2,525
   
$
1,221
   
$
-
   
$
-
 

                    
Derivatives not designated as hedging instruments
                    
Rate-lock mortgage loan commitments
Other assets
 
$
687
 
Other assets
 
$
530
 
Other liabilities
 
$
-
 
Other liabilities
 
$
-
 
Mandatory commitments to sell mortgage loans
Other assets
  
-
 
Other assets
  
37
 
Other liabilities
  
383
 Other liabilities  
-
 
Pay-fixed interest rate swap agreements -
commercial
 Other assets
  
1,116
 
Other assets
  
631
 
Other liabilities
  
711
 
Other liabilities
  
339
 
Pay-variable interest rate swap agreements - commercial
Other assets
  
711
 
Other assets
  
339
 
Other liabilities
  
1,116
 
Other liabilities
  
631
 
Purchased options
Other assets
  
116
 
Other assets
  
322
 
Other liabilities
  
-
 
Other liabilities
  
-
 
Written options
Other assets
  
-
 
Other assets
  
-
 
Other liabilities
  
116
 Other liabilities  
322
 
    
2,630
    
1,859
    
2,326
    
1,292
 
Total derivatives
  
$
5,155
   
$
3,080
   
$
2,326
   
$
1,292
 
Effect of Derivative Financial Instruments on Condensed Consolidated Statement of Operations
The effect of derivative financial instruments on the Consolidated Statements of Operations follows:


  
Year Ended December 31,
    
  
 Gain (Loss) Recognized
 in Other
 Comprehensive
 Income (Loss)
 (Effective Portion)
 
 Location
of
 Gain (Loss)
 Reclassified
 from
 Accumulated
 Other
 Comprehensive
 Loss
 into Income
 (Effective
 
 Gain (Loss)
 Reclassified from
 Accumulated Other
 Comprehensive
 Loss into Income
 (Effective Portion)
 
 Location of
 Gain (Loss)
 Recognized
 
 Gain (Loss)
 Recognized
 in Income(1)
  
  
2018
  
2017
  
2016
 
Portion)
 
2018
  
2017
  
2016
 
 in Income (1)
 
2018
  
2017
  
2016
  
  
(In thousands)
  
Cash Flow Hedges
                              
Interest rate capagreements
 
$
(340
)
 
$
108
  
$
-
 
Interest
expense
 
$
206
  
$
-
  
$
-
 
Interest
expense
 
$
-
  
$
-
  
$
-
  
Pay-fixed interest rate swap agreements
  
78
   
216
   
-
 
Interest
expense
  
31
   
(18
)
  
-
 
 
Interest
expense
  
(12
)
  
(12
)
  
-
  
Total
 
$
(262
)
 
$
324
  
$
-
   
$
237
  
$
(18
)
 
$
-
   
$
(12
)
 
$
(12
)
 
$
-
  
No hedge designation
                                    
Rate-lock mortgage loan commitments
                      
Net gains on mortgage loans
 
$
157
  
$
(116
)
 
$
96
  
Mandatory commitments to sell mortgage loans
                      
Net gains on mortgage loans
  
(420
)
  
(593
)
  
561
  
Pay-fixed interest rate swap agreements - commercial
                         
Interest income
  
113
   
43
   
746
  
Pay-variable interest rate swap agreements - commercial
                         
Interest income
  
(113
)
  
(43
)
  
(746
)
 
Purchased options
                      
Interest expense
  
(206
)
  
84
   
116
  
Written options
                      
Interest
expense
  
206
   
(84
)
  
(116
)
 
Total
                                  
$
(263
)
 
$
(709
)
 
$
657
  
                                        

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