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Derivative Financial Instruments And Hedging Activities | 12 Months Ended
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Dec. 31, 2011
Derivative Financial Instruments And Hedging Activities [Abstract] |
Derivative Financial Instruments And Hedging Activities | 17. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As part of our asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on our net interest margin. Interest rate swaps and caps involve the exchange of fixed-rate and variable-rate interest payment obligations without the exchange of the underlying notional amounts. During the third quarter of 2009, the Company entered into two two-year interest rate cap agreements with an aggregate notional amount of $50 million. Under these cap agreements, the Company receives quarterly payments from the counterparty when the quarterly resetting 3 Month London-Interbank Offered Rate ("3 Mo. LIBOR") exceeds the strike level of 2.00%. The upfront fee paid to the counterparty in entering into these two interest rate cap agreements was $359 thousand. During the third quarter of 2011, these two two-year interest rate cap agreements with an aggregate notional amount of $50 million have matured. During the first quarter of 2010, the Company entered into a three-year interest rate cap agreement with an aggregate notional amount of $50 million. Under this cap agreement, the Company receives quarterly payments from the counterparty when the quarterly resetting 3 Month London-Interbank Offered Rate exceeds the strike level of 2.00%. The upfront fee paid to the counterparty in entering into this interest rate cap agreement was $890 thousand. These interest rate cap agreements are considered "free-standing" due to non-designation of a hedge relationship to any of the Company's financial assets or liabilities. Under FASB ASC 815, valuation gains or losses on interest rate caps not designated as hedging instruments are recognized in earnings. At December 31, 2011, the aggregate fair value of the outstanding interest rate caps was $9 thousand and we recognized mark-to-market losses on valuation of $157 thousand in 2011. As of December 31, 2011, we did not have any outstanding interest rate swap agreements at December 31, 2011. At December 31, 2011, summary information about these interest-rate caps is as follows:
Notional amounts |  | $50.0 million
Weighted average pay rates |  | N/A
Weighted average receive rates |  | N/A
Weighted average maturity |  | 1.16 years
Fair value of combined interest rate caps |  | $9 thousand
The effect of derivative instruments on the Consolidated Statement of Income for 2011 and 2010 are as follows:
|  |  |  |  | 2011 |  |  | 2010 |
|  |  |  |  | (In thousands) |
|  | Location of Gain or (Loss) Recognized in Income on Derivatives |  |  | Amount of Gain or (Loss) Recognized in Income on Derivatives |
|  | (In thousand) |
Derivatives not designated as hedging instruments under FASB ASC 815: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts (1) |  |  | Other income |  |  | $ | (157 | ) |  | $ | (901 | )
(1) | Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments.

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- Definition This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 + Details
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