Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2012

Derivative Financial Instruments and Hedging Activities

18. Derivative Financial Instruments and Hedging Activities

At December 31, 2012 and 2011, the Company’s only derivative instruments related to residential mortgage lending activities.

At December 31, 2012, commitments to originate conforming mortgage loans totaled $11.1 million. These derivative loan commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $338 thousand. At December 31, 2011, commitments to originate conforming mortgage loans totaled $10.7 million and had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $365 thousand. The net change in derivative loan commitment fair values during the years ended December 31, 2012, 2011 and 2010 resulted in income (expense) of $(28) thousand, $302 thousand and $22 thousand, respectively.

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. Forward sales commitments totaled $8.0 million at December 31, 2011. At December 31, 2011, forward sales commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $116 thousand and negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $25 thousand. The net change in forward sales commitment fair values during the years ended December 31, 2012, 2011 and 2010 resulted in income (expense) of $(63) thousand, $12 thousand and $(12) thousand, respectively.