DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Tables

Schedule of Interest Rate Swaps

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

	March 31, 2014	December 31, 2013
Notional amount	$7,500	$7,500
Pay fixed rate	2.72%	2.72%
Receive variable rate	0.23%	0.24%
Maturity	September 2017	September 2017
Unrealized fair value loss	$(405)	$(438)

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:

	March 31, 2014	December 31, 2013
Notional amount	$14,155	$14,323
Receive fixed rate (average)	1.99%	2.00%
Pay variable rate (average)	0.15%	0.17%
Maturity	March 2015 – Oct. 2021	March 2015 – Oct. 2021
Weighted average remaining term	2.7 years	2.9 years
Unrealized fair value gain	$262	$276

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

	March 31, 2014	December 31, 2013
Notional amount	$14,155	$14,323
Pay fixed rate (average)	1.99%	2.00%
Receive variable rate (average)	0.15%	0.17%
Maturity	March 2015 – Oct. 2021	March 2015 – Oct. 2021
Weighted average remaining term	2.7 years	2.9 years
Unrealized fair value loss	$(262)	$(276)