DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swaps

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

($000s)	June 30, 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 gain (loss)	$ (405)	$ (438)

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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:

($000s)	June 30, 2014	December 31, 2013
Notional amount:	$13,986	$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	2.4 years	2.9 years
Unrealized fair value gain	$  267	$  276

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

($000s)	June 30, 2014	December 31, 2013
Notional amount	$13,986	$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	2.4 years	2.9 years
Unrealized fair value loss	$  (267)	$  (276)