XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 11 - Derivative Financial Instruments | 3 Months Ended
--- | ---
Mar. 31, 2017
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
11. |  | Derivative Financial Instruments
At March 31, 2017 and December 31, 2016, the Company’s derivative financial instruments consist 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 $267.4 million and $235.4 million at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017 and December 31, 2016 derivatives with a combined notional amount of $ 36.3 million were not designated as hedges. At March 31, 2017 and December 31, 2016 derivatives with a combined notional amount of $249.1 million and $217.1 million were designated as fair value hedges. Changes in the fair value of all interest rate swaps and hedged items are reflected in “Net loss from fair value adjustments” in the Consolidated Statements of Income. The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated:
|  | March 31, 2017 |  | December 31, 2016
|  | Notional Amount |  | Net Carrying Value (1) |  | Notional Amount |  | Net Carrying Value (1)
Interest rate swaps (hedge) |  | $ | 221,591 |  |  | $ | 6,833 |  |  | $ | 182,177 |  |  | $ | 6,350 |
Interest rate swaps (hedge) |  |  | 27,472 |  |  |  | (544 | ) |  |  | 34,916 |  |  |  | (658 | )
Interest rate swaps (non-hedge) |  |  | 36,321 |  |  |  | (2,496 | ) |  |  | 36,321 |  |  |  | (2,728 | )
Total derivatives |  | $ | 285,384 |  |  | $ | 3,793 |  |  | $ | 253,414 |  |  | $ | 2,964 |
(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 at March 31, 2017 and December 31, 2016.
The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:
|  | For the three months ended March 31,
(In thousands) |  | 2017 |  | 2016
Financial Derivatives: |  |  |  |  |  |  |  |
Interest rate swaps (non-hedge) |  | $ | 232 |  |  | $ | (2,102 | )
Interest rate swaps (hedge) |  |  | (66 | ) |  |  | (40 | )
Net gain (loss) (1) (2) |  | $ | 166 |  |  | $ | (2,142 | )
(1) | Net gains and losses are recorded as part of “Net loss from fair value adjustments” in the Consolidated Statements of Income.
(2) | The net gain (loss) presented in the above table does not include net losses of $0.5 million and net gains of $1.2 million for the three months ended March 31, 2017 and 2016, respectively, from the change in the fair value of financial assets and liabilities carried at fair value under the fair value option.
The Company’s interest rate swaps are subject to two master netting arrangements between the Company and its two designated counterparties. 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 and liabilities in the Consolidated Statements of Condition as of the dates indicated:
|  | March 31, 2017
|  |  |  |  |  |  |  | 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 |  | $ | 6,833 |  |  | $ | - |  |  | $ | 6,833 |  |  | $ | - |  |  | $ | 3,793 |  |  | $ | 3,040 |
|  |  |  |  |  |  |  | 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 |  | $ | 3,040 |  |  | $ | - |  |  | $ | 3,040 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,040 |
|  | December 31, 2016
|  |  |  |  |  |  |  | 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 |  | $ | 6,350 |  |  | $ | - |  |  | $ | 6,350 |  |  | $ | - |  |  | $ | 2,964 |  |  | $ | 3,386 |
|  |  |  |  |  |  |  | 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 |  | $ | 3,386 |  |  | $ | - |  |  | $ | 3,386 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,386 |

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration