Note 6 - Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 6.     Derivatives and Hedging Activities

Below is a summary of the interest rate cap derivatives held by the Company as of December 31, 2015 and 2014. An initial premium of $2.1 million was paid upfront for the two caps. The fair value of these instruments will fluctuate with market value changes, as well as amortization of the initial premium to interest expense.

Effective Date	Maturity Date	Balance Sheet Location	Notional Amount		Accounting Treatment	December 31, 2015 Fair Value		December 31, 2014 Fair Value
June 5, 2014	June 5, 2019	Other Assets	$	15,000,000	Cash Flow Hedging	$	321,112	$	608,189
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		534,912		879,198
			$	30,000,000		$	856,024	$	1,487,387

Changes in the fair values of derivative financial instruments accounted for as cash flow hedges to the extent they are effective hedges, are recorded as a component of accumulated other comprehensive income. The following is a summary of how AOCI was impacted during the reporting periods:

	Year Ended
	December 31, 2015			December 31, 2014
Unrealized loss at beginning of period, net of tax	$	(399,367	)	$	-
Amount reclassified from accumulated other comprehensive income to noninterest income related to hedge ineffectiveness		(156	)		(30,212	)
Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization		16,051			65
Amount of loss recognized in other comprehensive income, net of tax		(415,949	)		(369,220	)
Unrealized loss at end of period, net of tax	$	(799,421	)	$	(399,367	)

Changes in the fair value related to the ineffective portion of cash flow hedges, are reported in noninterest income during the period of the change. As shown in the table above, $156 and $30,212 of income from the change in fair value for the years ending December 31, 2015 and 2014, respectively, was due to ineffectiveness.