DERIVATIVES

12 Months Ended

Dec. 31, 2014

DERIVATIVES [Abstract]

DERIVATIVES

15.  DERIVATIVES

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Interest Rate Swap Designated as Cash Flow Hedge: An interest rate swap with a notional amount of $25.0 million as of December 31, 2014, was designated as a cash flow hedge of certain interest-bearing demand brokered deposits and was determined to be fully effective during 2014. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other liabilities with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive income would be reclassified to current earnings should the hedge no longer be considered effective. The Company expects the hedge to remain fully effective during the remaining terms of the swap.

The following information about the interest rate swap designated as cash flow hedge as of December 31, 2014 is presented in the following table:

(In thousands)	2014
Notional amount	$	25,000
Weighted average pay rate		1.81	%
Weighted average receive rate		0.21	%
Weighted average maturity		5	years
Unrealized loss	$	(169	)

Interest expense recorded on this swap transaction totaled $1 thousand for the twelve months ended December 31, 2014 and is reported as a component of interest expense.

Cash Flow Hedge

The following table presents the net gains/(losses) recorded in accumulated other comprehensive income and the consolidated financial statements relating to the cash flow derivative instruments for the year ended December 31:

2014
						Amount of
	Amount of			Amount of		Gain/(Loss)
	Gain/(Loss)			Gain/(Loss)		Recognized in
	Recognized			Reclassified		Other Non-Interest
	In OCI			From OCI to		Expense
(In thousands)	(Effective Portion)			Interest Expense		(Ineffective Portion)
Interest rate contracts	$	(169	)	$	—	$	—

The following table reflects the cash flow hedge included in the financial statements as of December 31:

	2014
(In thousands)	Notional Amount		Fair Value
Included in liabilities:
Interest rate swap related to interest-bearing
demand brokered deposits	$	25,000	$	(169	)
Total included in other liabilities	$	25,000	$	(169	)