DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments And Hedging Activities Tables

Interest Rate Swaps at Period End

At period end, the following interest rate swaps to hedge variable-rate debt were outstanding:

	September 30, 2012	December 31, 2011
Notional amount	$ 7,500	$ 7,500
Pay fixed rate	2.72%	2.72%
Receive variable rate	0.39%	0.55%
Maturity	September 2017	September 2017
Unrealized gain (loss) fair value	$ (739)	$ (576)

Interest Rate Swaps With Customers Not Designated as Hedges at Period End

PSB maintains outstanding interest rate swaps with customers and correspondent banks associated with its lending activities that are not designated as hedges. At period end, the following floating interest rate swaps were outstanding with customers:

	September 30, 2012	December 31, 2011
Notional amount	$ 15,139	$ 14,324
Receive fixed rate (average)	1.99%	2.05%
Pay variable rate (average)	0.23%	0.29%
Maturity	March 2015 – Oct. 2021	March 2015 – Oct. 2021
Weighted average remaining term	4.1 years	4.9 years
Unrealized gain (loss) fair value	$ 735	$ 555

Interest Rate Swaps With Banks Not Designated as Hedges at Period End

At period end, the following offsetting fixed interest rate swaps were outstanding with correspondent banks:

	September 30, 2012	December 31, 2011
Notional amount	$ 15,139	$ 14,324
Pay fixed rate (average)	1.99%	2.05%
Receive variable rate (average)	0.23%	0.29%
Maturity	March 2015 – Oct. 2021	March 2015 – Oct. 2021
Weighted average remaining term	4.1 years	4.9 years
Unrealized gain (loss) fair value	$ (735)	$ (555)