Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Cash flow hedge designation
Pay-fixed interest rate swap agreements	$	25,000		2.3	$	122
Interest rate cap agreements		150,000		3.3		1,255
Total	$	175,000		3.2	$	1,377
No hedge designation
Rate-lock mortgage loan commitments	$	47,345		0.1	$	1,316
Mandatory commitments to sell mortgage loans		69,762		0.1		(209	)
Pay-fixed interest rate swap agreements - commercial		97,083		5.3		(742	)
Pay-variable interest rate swap agreements - commercial		97,083		5.3		742
Purchased options		3,095		2.3		202
Written options		3,035		2.3		(200	)
Total	$	317,403		3.3	$	1,109

	December 31, 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

Fair Value of Derivative Instruments

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	March 31, 2019			December 31, 2018			March 31, 2019			December 31, 2018
	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	$	122	Other assets	$	280	Other liabilities	$	-	Other liabilities	$	-
Interest rate cap agreements	Other assets		1,255	Other assets		2,245	Other liabilities		-	Other liabilities		-
			1,377			2,525			-			-
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		1,316	Other assets		687	Other liabilities		-	Other liabilities		-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		-	Other liabilities		209	Other liabilities		383
Pay-fixed interest rate swap agreements -commercial	Other assets		534	Other assets		1,116	Other liabilities		1,276	Other liabilities		711
Pay-variable interest rate swap agreements -commercial	Other assets		1,276	Other assets		711	Other liabilities		534	Other liabilities		1,116
Purchased options	Other assets		202	Other assets		116	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		200	Other liabilities		116
			3,328			2,630			2,219			2,326
Total derivatives		$	4,705		$	5,155		$	2,219		$	2,326

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 March 31,
	Gain (Loss) 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 (Loss)  Recognized  in Income (1)	Gain (Loss) Recognized in Income (1)
	2019			2018			2019		2018				2019			2018
	(In thousands)
Cash Flow Hedges
Interest rate cap agreements	$	(785	)	$	513	Interest expense	$	118	$	7		Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		(127	)		171	Interest expense		31		(1	)	Interest expense		-			12
Total	$	(912	)	$	684		$	149	$	6			$	-		$	12
No hedge designation
Rate-lock mortgage loan commitments												Net gains on mortgage loans	$	629		$	428
Mandatory commitments to sell mortgage loans												Net gains on mortgage loans		174			(160	)
Pay-fixed interest rate swap agreements -commercial												Interest income		(1,147	)		1,056
Pay-variable interest rate swap agreements -commercial												Interest income		1,147			(1,056	)
Purchased options												Interest expense		86			(93	)
Written options												Interest expense		(84	)		93
Total													$	805		$	268

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