DERIVATIVES

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 20—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 swap 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 Swaps Designated as Cash Flow Hedges: Interest rate swaps with a notional amount totaling $25.0 million and $25.0 million were entered into on October 15, 2014 and December 30, 2014, respectively and were designated as cash flow hedges of certain Federal Home Loan Bank advances. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps.

Summary information about the interest rate swap designated as a cash flow hedges as of year-end is as follows (dollars in thousands):

	2014
Notional Amounts		$	50,000
Weighted average pay rates			1.58	%
Weighted average receivable rates			0.24
Weighted average maturity			4.4 years
Unrealized gains		$	48

Interest expense recorded on these swaps transactions totaled approximately $60,000 during 2014 and is reported as a component of interest expense on FHLB Advances. There are 0 related expenses for the years ended December 31, 2013 and 2012.

Cash Flow Hedge

The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidate Statements of Income relating to the cash flow derivative instruments for the year ended December 31:

	2014
	Amount of Gain (Loss) Recognized in OCI (Effective Portion)			Amount of Gain (Loss) Reclassified from OCI to Interest Income			Amount of Gain (Loss) Recognized in Other Non-interest Income (Ineffective Portion)
	(Dollars in Thousands)
Interest Rate Contracts		$	48		$	—		$	—

The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of December 31, 2014:

	2014
	Notional Amount			Fair Value
	(In thousands)
Included in other asset/(liabilities):
Interest rate swap related to FHLB Advances		$	50,000		$	48