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Derivative Activities | 9 Months Ended
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Sep. 30, 2018
Derivative Activities [Abstract] |
Derivative Acitivities | NOTE 9 — DERIVATIVES The following table presents Oriental’s derivative assets and liabilities at September 30, 2018 and December 31, 2017:
| September 30, |  | December 31,
| 2018 |  | 2017
| (In thousands)
Derivative assets: |  |  |  |  |
Interest rate swaps designated as cash flow hedges | $ | 643 |  | $ | -
Interest rate swaps not designated as hedges |  | 227 |  |  | 618
Interest rate caps |  | 395 |  |  | 153
| $ | 1,265 |  | $ | 771
Derivative liabilities: |  |  |  |  |
Interest rate swaps designated as cash flow hedges |  | - |  |  | 510
Interest rate swaps not designated as hedges |  | 227 |  |  | 618
Interest rate caps |  | 395 |  |  | 153
| $ | 622 |  | $ | 1,281
Interest Rate Swaps Oriental enters into interest rate swap contracts to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in a predetermined variable index rate. The interest rate swaps effectively fix Oriental’s interest payments on an amount of forecasted interest expense attributable to the variable index rate corresponding to the swap notional stated rate. These swaps are designated as cash flow hedges for the forecasted wholesale borrowing transactions and are properly documented as such; therefore, qualify for cash flow hedge accounting. Any gain or loss associated with the effective portion of the cash flow hedges is recognized in other comprehensive (loss) and is subsequently reclassified into operations in the period during which the hedged forecasted transactions affect earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income to the extent there is no significant ineffectiveness in the cash flow hedging relationships. Currently, Oriental does not expect to reclassify any amount included in other comprehensive (loss) related to these interest rate swaps to operations in the next twelve months. The following table shows a summary of these swaps and their terms at September 30, 2018:
|  | Notional |  | Fixed |  | Variable |  | Trade |  | Settlement |  | Maturity
Type |  | Amount |  | Rate |  | Rate Index |  | Date |  | Date |  | Date
|  | (In thousands) |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 33,964 |  | 2.4210% |  | 1-Month LIBOR |  | 07/03/13 |  | 07/03/13 |  | 08/01/23
|  | $ | 33,964 |  |  |  |  |  |  |  |  |  |
An accumulated unrealized gain of $643 thousand and a loss of $510 thousand were recognized in accumulated other comprehensive income related to the valuation of these swaps at September 30, 2018 and December 31, 2017, respectively, and the related asset or liability is being reflected in the consolidated statements of financial condition. At September 30, 2018 and December 31, 2017, interest rate swaps not designated as hedging instruments that were offered to clients represented an asset of $227 thousand and $618 thousand, respectively, and were included as part of derivative assets in the consolidated statements of financial position. The credit risk to these clients stemming from these derivatives, if any, is not material. At September 30, 2018 and December 31, 2017, interest rate swaps not designated as hedging instruments that are the mirror-images of the derivatives offered to clients represented a liability of $227 thousand and $618 thousand, respectively, and were included as part of derivative liabilities in the consolidated statements of financial condition. The following table shows a summary of these interest rate swaps not designated as hedging instruments and their terms at September 30, 2018:
|  | Notional |  | Fixed |  | Variable |  | Settlement |  | Maturity
Type |  | Amount |  | Rate |  | Rate Index |  | Date |  | Date
|  | (In thousands) |  |  |  |  |  |  |  |
Interest Rate Swaps - Derivatives Offered to Clients |  | $ | 12,500 |  | 5.5050% |  | 1-Month LIBOR |  | 04/11/09 |  | 04/11/19
|  | $ | 12,500 |  |  |  |  |  |  |  |
Interest Rate Swaps - Mirror Image Derivatives |  | $ | 12,500 |  | 5.5050% |  | 1-Month LIBOR |  | 04/11/09 |  | 04/11/19
|  | $ | 12,500 |  |  |  |  |  |  |  |
Interest Rate Caps Oriental has entered into interest rate cap transactions with various clients with floating-rate debt who wish to protect their financial results against increases in interest rates. In these cases, Oriental simultaneously enters into mirror-image interest rate cap transactions with financial counterparties. None of these cap transactions qualify for hedge accounting, and therefore, they are marked to market through earnings. As of September 30, 2018 and December 31, 2017, the outstanding total notional amount of interest rate caps was $151.4 million and $152.6 million, respectively. At September 30, 2018 and December 31, 2017, the interest rate caps sold to clients represented a liability of $395 thousand and $153 thousand, respectively, and were included as part of derivative liabilities in the consolidated statements of financial condition. At September 30, 2018 and December 31, 2017, the interest rate caps purchased as mirror-images represented an asset of $395 thousand and $153 thousand, respectively, and were included as part of derivative assets in the consolidated statements of financial condition.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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