Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2013

Derivative Financial Instruments and Hedging Activities

17. Derivative Financial Instruments and Hedging Activities

At March 31, 2013 and December 31, 2012, the Company’s only derivative instruments related to residential mortgage banking activities.

At March 31, 2013, commitments to originate conforming mortgage loans held for sale totaled $12.8 million. These derivative loan commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $350 thousand. At December 31, 2012, commitments to originate conforming mortgage loans held for sale totaled $11.1 million. These derivative loan commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $338 thousand. The net change in derivative loan commitment fair values during the three months ended March 31, 2013 and 2012 resulted in income of $13 thousand and $48 thousand, respectively.

Forward sales commitments totaled $13.7 million at March 31, 2013. These forward sales commitments negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $61 thousand. Forward sales commitments totaled $11.8 million at December 31, 2012. These forward sales commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $33 thousand and negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $5 thousand. The net change in forward sales commitment fair values during the three months ended March 31, 2013 and 2012 resulted in income (expense) of $(89) thousand and $60 thousand, respectively.