Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 2019
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Fair value hedge designation - Pay-fixed interest rate swap agreements	$	7,117		9.9	$	(203	)
Cash flow hedge designation
Pay-fixed interest rate swap agreements	$	25,000		2.1	$	(171	)
Interest rate cap agreements		150,000		3.1		576
Total	$	175,000		3.0	$	405
No hedge designation
Rate-lock mortgage loan commitments	$	81,784		0.1	$	2,147
Mandatory commitments to sell mortgage loans		141,434		0.1		(334	)
Pay-fixed interest rate swap agreements - commercial		108,895		5.3		(3,179	)
Pay-variable interest rate swap agreements - commercial		108,895		5.3		3,179
Purchased options		3,095		2.0		171
Written options		3,035		2.0		(170	)
Total	$	447,138		2.7	$	1,814

	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

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
	June 30, 2019			December 31, 2018			June 30, 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	$	-	Other assets	$	280	Other liabilities	$	374	Other liabilities	$	-
Interest rate cap agreements	Other assets		576	Other assets		2,245	Other liabilities		-	Other liabilities		-
			576			2,525			374			-
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		2,147	Other assets		687	Other liabilities		-	Other liabilities		-
Mandatory commitments to sell mortgage loans	Other assets		-	Other assets		-	Other liabilities		334	Other liabilities		383
Pay-fixed interest rate swap agreements -commercial	Other assets		80	Other assets		1,116	Other liabilities		3,259	Other liabilities		711
Pay-variable interest rate swap agreements -commercial	Other assets		3,259	Other assets		711	Other liabilities		80	Other liabilities		1,116
Purchased options	Other assets		171	Other assets		116	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		170	Other liabilities		116
			5,657			2,630			3,843			2,326
Total derivatives		$	6,233		$	5,155		$	4,217		$	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 June 30,
	Gain (Loss) 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)
	2019			2018		Portion)	2019		2018		in Income (1)	2019			2018
							(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreements											Interest income	$	(203	)	$	-
Cash Flow Hedges
Interest rate cap agreements	$	(489	)	$	244	Interest expense	$	115	$	45	Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		(267	)		83	Interest expense		27		8	Interest expense		-			(24	)
Total	$	(756	)	$	327		$	142	$	53		$	-		$	(24	)
No hedge designation
Rate-lock mortgage loan commitments											Net gains on mortgage  loans	$	831		$	244
Mandatory commitments to sell mortgage loans											Net gains on mortgage loans		(125	)		(110	)
Pay-fixed interest rate swap agreements -commercial											Interest income		(2,437	)		487
Pay-variable interest rate swap agreements -commercial											Interest income		2,437			(487	)
Pay-variable interest rate swap agreements											Interest expense		-			36
Purchased options											Interest expense		(31	)		(6	)
Written options											Interest expense		30			6
Total												$	705		$	170

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

Six Month Periods Ended June 30,
	Gain (Loss) 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)
	2019			2018		Portion)	2019		2018		in Income (1)	2019			2018
							(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreements											Interest income	$	(203	)	$	-
Cash Flow Hedges
Interest rate cap agreements	$	(1,274	)	$	757	Interest expense	$	233	$	52	Interest expense	$	-		$	-
Pay-fixed interest rate swap agreements		(394	)		254	Interest expense		58		7	Interest expense		-			(12	)
Total	$	(1,668	)	$	1,011		$	291	$	59		$	-		$	(12	)
No hedge designation
Rate-lock mortgage loan commitments											Net gains on mortgage loans	$	1,460		$	672
Mandatory commitments to sell mortgage loans											Net gains on mortgage  loans		49			(270	)
Pay-fixed interest rate swap agreements -commercial											Interest income		(3,584	)		1,543
Pay-variable interest rate swap agreements -commercial											Interest income		3,584			(1,543	)
Pay-variable interest rate swap agreements											Interest expense		-			36
Purchased options											Interest expense		55			(99	)
Written options											Interest expense		(54	)		99
Total												$	1,510		$	438

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