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Note 19 - Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 19. Derivative Financial Instruments At December 31, 2015 and 2014, the Company’s derivative financial instruments consisted of interest rate swaps. The Company’s interest rate swaps are used for two purposes. The first purpose is to mitigate the Company’s exposure to rising interest rates on a portion ($18.0 million) of its floating rate junior subordinated debentures that have a contractual value of $61.9 million. The second purpose is to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans totaling $146.9 million and $32.8 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014 interest rate swaps with a combined notional amount of $36.3 million, were not designated as hedges. Interest rate swaps with a combined notional amount of $128.5 million and $14.5 million were designated as fair value hedges at December 31, 2015 and 2014, respectively. Changes in the fair value of the interest rate swaps not designated as hedges are reflected in “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income. During 2015 and 2014, the Company did not record any hedge ineffectiveness. The following tables set forth information regarding the Company’s derivative financial instruments:
|  | At or for the year ended December 31, 2015
|  | Notional Amount |  | Net Carrying Value (1)
|  | (In thousands)
Interest rate swaps (non-hedge) |  | $ | 36,321 |  |  | $ | (2,799 | )
Interest rate swaps (hedge) |  |  | 28,588 |  |  |  | 48 |
Interest rate swaps (hedge) |  |  | 99,955 |  |  |  | (1,515 | )
Total derivatives |  | $ | 164,864 |  |  | $ | (4,266 | )
|  | At or for the year ended December 31, 2014
|  | Notional Amount |  | Net Carrying Value (1)
|  | (In thousands)
Interest rate swaps (non-hedge) |  | $ | 36,321 |  |  | $ | (2,239 | )
Interest rate swaps (hedge) |  |  | 4,131 |  |  |  | 84 |
Interest rate swaps (hedge) |  |  | 10,340 |  |  |  | (410 | )
Total derivatives |  | $ | 50,792 |  |  | $ | (2,565 | )
(1) | Derivatives in a net positive position are recorded as “Other assets” and derivatives in a net negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition. There were no unrealized losses on derivative financial instruments at December 31, 2015 and 2014.
The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:
|  | For the year ended December 31,
(In thousands) |  | 2015 |  | 2014 |  | 2013
Financial Derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate caps (non-hedge) |  | $ | - |  |  | $ | - |  |  | $ | (18 | )
Interest rate swaps (non-hedge) |  |  | (561 | ) |  |  | (3,919 | ) |  |  | 3,603 |
Interest rate swaps (hedge) |  |  | (1,036 | ) |  |  | (124 | ) |  |  | 29 |
Net Gain (loss) (1) |  | $ | (1,597 | ) |  | $ | (4,043 | ) |  | $ | 3,614 |
(1) | Net gains (losses) are recorded as “Net gain (losses) from fair value adjustments” in the Consolidated Statements of Income.
The Company’s interest rate swaps are subject to master netting arrangements and are all with the same counterparty. The Company has not made a policy election to offset its derivative positions. The following tables present the effect of the master netting arrangements on the presentation of the derivative assets in the Consolidated Statements of Condition as of the dates indicated:
|  | December 31, 2015
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Statement of Condition |  |
(In thousands) |  | Gross Amount of Recognized Assets |  | Gross Amount Offset in the Statement of Condition |  | Net Amount of Assets Presented in the Statement of Condition |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Interest rate swaps |  | $ | 48 |  |  | $ | - |  |  | $ | 48 |  |  | $ | 48 |  |  | $ | - |  |  | $ | - |
|  | December 31, 2014
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Statement of Condition |  |
(In thousands) |  | Gross Amount of Recognized Assets |  | Gross Amount Offset in the Statement of Condition |  | Net Amount of Assets Presented in the Statement of Condition |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Interest rate swaps |  | $ | 84 |  |  | $ | - |  |  | $ | 84 |  |  | $ | 84 |  |  | $ | - |  |  | $ | - |
The following tables present the effect the master netting arrangements had on the presentation of the derivative liabilities in the Consolidated Statements of Condition as of the dates indicated:
|  | December 31, 2015
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Statement of Condition |  |
(In thousands) |  | Gross Amount of Recognized Liabilities |  | Gross Amount Offset in the Statement of Condition |  | Net Amount of Liabilities Presented in the Statement of Condition |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Interest rate swaps |  | $ | 4,314 |  |  | $ | - |  |  | $ | 4,314 |  |  | $ | 48 |  |  | $ | 4,266 |  |  | $ | - |
|  | December 31, 2014
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Statement of Condition |  |
(In thousands) |  | Gross Amount of Recognized Liabilities |  | Gross Amount Offset in the Statement of Condition |  | Net Amount of Liabilities Presented in the Statement of Condition |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Interest rate swaps |  | $ | 2,649 |  |  | $ | - |  |  | $ | 2,649 |  |  | $ | 84 |  |  | $ | 2,565 |  |  | $ | - |

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