Derivatives

3 Months Ended

Mar. 31, 2012

Derivatives

Derivatives

9. Derivatives

The Company utilizes derivatives for various economic hedging strategies to actively manage its market and liquidity exposures.  In addition, the Company enters into mortgage loan IRLCs in connection with its mortgage lending activities.  The following table summarizes the Company’s derivative instruments as of March 31, 2012 and December 30, 2011:

	March 31, 2012						December 31, 2011
(In thousands)	Number  of  Contracts	Notional		Fair  Value			Number  of  Contracts	Notional		Fair  Value
Purchase Contracts
TBA purchase agreements	—	$	—	$	—		1	$	589	$	—
U.S. treasury futures contracts	—	—		—			—	—		—
IRLCs	667	109,288		885			708	127,227		1,696
Total	667	109,288		$	885		709	$	127,816	$	1,696
Sale Contracts
TBA sale agreements	19	$	342,500	$	(467	)	17	$	371,000	$	(1,183	)
Forward sale agreements	1	5,000		13			11	120,900		(788		)
U.S. treasury futures contracts	—	—		—			—	—		—
Total	20	$	347,500	$	(454	)	28	$	491,900	$	(1,971	)

Total losses associated with these activities, which are recorded within Principal transactions within the Consolidated Statements of Operations were $1.5 million and $3.0 million, for the three months ended March 31, 2012 and 2011, respectively.