XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.19.2

DERIVATIVE INSTRUMENTS | 6 Months Ended
--- | ---
Jun. 30, 2019
DERIVATIVE INSTRUMENTS [Abstract] |
DERIVATIVE INSTRUMENTS | NOTE M: DERIVATIVE INSTRUMENTS The Company is party to derivative financial instruments in the normal course of its business to meet the financing needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments have been limited to interest rate swap agreements, commitments to originate real estate loans held for sale and forward sales commitments. The Company does not hold or issue derivative financial instruments for trading or other speculative purposes. The Company enters into forward sales commitments for the future delivery of residential mortgage loans, and interest rate lock commitments to fund loans at a specified interest rate. The forward sales commitments are utilized to reduce interest rate risk associated with interest rate lock commitments and loans held for sale. Changes in the estimated fair value of the forward sales commitments and interest rate lock commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. At inception and during the life of the interest rate lock commitment, the Company includes the expected net future cash flows related to the associated servicing of the loan as part of the fair value measurement of the interest rate lock commitments. These derivatives are recorded at fair value, which were immaterial at June 30, 2019 and December 31, 2018. The effect of the changes to these derivatives for the three and six months then ended was also immaterial. The Company also acquired interest rate swaps in 2017 with notional amounts totaling $6.2 million at June 30, 2019, and $6.6 million at December 31, 2018, that were designated as fair value hedges of certain fixed rate loans with municipalities which are recorded in loans in the consolidated statements of condition. At June 30, 2019, the weighted average receive rate of these interest rate swaps was 2.89%, the weighted average pay rate was 3.11% and the weighted average maturity was 14.0 years. At December 31, 2018, the weighted average receive rate of these interest rate swaps was 2.92%, the weighted average pay rate was 3.11% and the weighted average maturity was 14.5 years. The Company includes the gain or loss on the hedged items in interest and fees on loans, the same line item as the offsetting gain or loss on the related interest rate swaps. The effects of fair value accounting in the consolidated statements of income for the three and six months ended June 30, 2019 are immaterial. As of June 30, 2019, the following amounts were recorded in the consolidated statement of condition related to cumulative basis adjustments for fair value hedges: (000’s omitted)
|  | Carrying Amount of the Hedged Assets |  |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets |
Line Item in the Consolidated Statement of Condition in Which the Hedged Item Is Included |  | June 30, 2019 |  |  | June 30, 2019 |
Loans |  | $ | 6,475 |  |  | $ | (252 | )
Fair values of derivative instruments as of June 30, 2019 are as follows:
(000’s omitted) | June 30, 2019 |
| Derivative Assets |  | Derivative Liabilities |
Consolidated Statement of Condition Location |  | Fair Value |  | Consolidated Statement of Condition Location |  | Fair Value |
Derivatives designated as hedging instruments under Subtopic 815-20 |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | 252 |  |  |  |  |
Derivatives not designated as hedging instruments under Subtopic 815-20 |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  |  | 757 |  | Accrued interest and other liabilities |  | $ | 757 |
Total derivatives |  |  | $ | 1,009 |  |  |  | $ | 757 |
The Company assessed its counterparty risk at June 30, 2019 and determined any credit risk inherent in our derivative contracts was not material. Information about the fair value of derivative financial instruments can be found in Note L to these consolidated financial statements.

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

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://fasb.org/us-gaap/role/ref/legacyRef -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