Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	June 30, 2015
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	22,118		0.1	$	542
Mandatory commitments to sell mortgage loans		53,935		0.1		336
Pay-fixed interest rate swap agreements		19,888		7.5		(222	)
Pay-variable interest rate swap agreements		19,888		7.5		222
Total	$	115,829		2.6	$	878

	December 31, 2014
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	16,759		0.1	$	437
Mandatory commitments to sell mortgage loans		38,600		0.1		(184	)
Pay-fixed interest rate swap agreements		3,300		9.4		(182	)
Pay-variable interest rate swap agreements		3,300		9.4		182
Total	$	61,959		1.1	$	253

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	$	542	Other assets	$	437	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		336	Other assets		-	Other liabilities		-	Other liabilities		184
Pay-fixed interest rate swap agreements	Other assets		-	Other assets		-	Other liabilities		222	Other liabilities		182
Pay-variable interest rate swap agreements	Other assets		222	Other assets		182	Other liabilities		-	Other liabilities		-
Total derivatives		$	1,100		$	619		$	222		$	366

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 (Loss) Reclassified from Accumulated Other Comprehensive Income 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
	2015		2014		Portion)	2015		2014			in Income ⁽¹⁾	2015			2014
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements ⁽²⁾	$	-	$	-	Interest expense	$	-	$	(95	)		$	-		$	-
Total	$	-	$	-		$	-	$	(95	)		$	-		$	-

No hedge designation
Rate-lock mortgage loan commitments											Net mortgage loan gains	$	(283	)	$	238
Mandatory commitments to sell mortgage loans											Net mortgage loan gains		559			(271	)
Pay-fixed interest rate swap agreements											Interest income		221			(99	)
Pay-variable interest rate swap agreements											Interest income		(221	)		99
U.S. Treasury short position											Gain on securities		-			52
Total												$	276		$	19

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

(2)	Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive income and was being amortized into earnings through December 31, 2014.

Six Month Periods Ended June 30,
	Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income 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
	2015		2014		Portion)	2015		2014			in Income ⁽¹⁾	2015			2014
	(In thousands)
Cash Flow Hedges
Pay-fixed interest rate swap agreements ⁽²⁾	$	-	$	-	Interest expense	$	-	$	(190	)		$	-		$	-
Total	$	-	$	-		$	-	$	(190	)		$	-		$	-

No hedge designation
Rate-lock mortgage loan commitments											Net mortgage loan gains	$	105		$	224
Mandatory commitments to sell mortgage loans											Net mortgage loan gains		520			(354	)
Pay-fixed interest rate swap agreements											Interest income		(40	)		(99	)
Pay-variable interest rate swap agreements											Interest income		40			99
U.S. Treasury short position											Gain on securities		-			52
Total												$	625		$	(78	)

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

(2)	Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive income and was being amortized into earnings through December 31, 2014.