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DERIVATIVE INSTRUMENTS | 9 Months Ended
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Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company uses derivative instruments and other risk management techniques to reduce its exposure to adverse fluctuations in interest rates in accordance with its risk management policies. Interest Rate Swaps and Caps on Loans: The Company offers interest rate swap and cap products to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. When such products are issued, the Company also enters into an offsetting swap with institutional counterparties to eliminate the interest rate risk. These back-to-back agreements are intended to offset each other and allow the Company to retain the credit risk of the transaction with its customer in exchange for a fee. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer plus the fee. These swaps and caps are not designated as hedging instruments and are recorded at fair value in Other Assets and Accrued Expenses and Other Liabilities in the Consolidated Statement of Financial Condition. The changes in fair value are recorded in Other Income in the Consolidated Statements of Operations. For the three and nine months ended September 30, 2018 and 2017, changes in fair value recorded through Other Income in the Consolidated Statements of Operations were insignificant. The following table presents the notional amount and fair value of derivative instruments included in the Consolidated Statements of Financial Condition as of the dates indicated.
|  | September 30, 2018 |  | December 31, 2017
($ in thousands) |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Included in assets: |  |  |  |  |  |  |  |
Interest rate swaps and caps on loans |  | $ | 97,451 |  |  | $ | 2,099 |  |  | $ | 70,486 |  |  | $ | 1,005 |
Total included in assets |  | $ | 97,451 |  |  | $ | 2,099 |  |  | $ | 70,486 |  |  | $ | 1,005 |
Included in liabilities: |  |  |  |  |  |  |  |
Interest rate swaps and caps on loans |  | $ | 97,451 |  |  | $ | 2,064 |  |  | $ | 70,486 |  |  | 1,033 |
Total included in liabilities |  | $ | 97,451 |  |  | $ | 2,064 |  |  | $ | 70,486 |  |  | $ | 1,033 |
The Company has entered into agreements with counterparty financial institutions, which include master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. However, the Company elected to account for all derivatives with counterparty institutions on a gross basis. Due to clearinghouse rule changes, beginning January 1, 2017, variation margin payments are treated as settlements of derivative exposure rather than as collateral.

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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