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Derivatives | 3 Months Ended
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Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Note 5 – Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps were entered into on August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of a Federal Home Loan Bank advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. Summary information about the interest rate swaps designated as cash flow hedges as of March 31, 2017, December 31, 2016 and March 31, 2016 are presented in the following table.
|  | March 31, |  | December 31, |  | March 31,
(dollars in thousands) |  | 2017 |  | 2016 |  | 2016
Notional amount |  | $ | 75,000 |  |  | $ | 75,000 |  |  | $ | 75,000 |
Weighted average pay rates |  |  | 1.58 | % |  |  | 1.59 | % |  |  | 1.57 | %
Weighted average receive rates |  |  | 1.00 | % |  |  | 0.69 | % |  |  | 0.56 | %
Weighted average maturity |  |  | 2.5 years |  |  |  | 2.8 years |  |  |  | 3.6 years |
Fair value |  | $ | 248 |  |  | $ | 88 |  |  | $ | (1,568 | )
Interest expense recorded on these swap transactions totaled approximately $108 thousand for the three months ended March 31, 2017 and $191 thousand for the three months ended March 31, 2016. Cash Flow Hedge The following table presents the net gains (losses), recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:
| Three Months Ended March 31, 2017
|  | Amount of gain |  |  | Amount of gain |  | Amount of gain (loss)
|  | (loss) recognized |  |  | (loss) reclassified |  | recognized in other
|  | in OCI (Effective |  |  | from OCI to |  | Noninterest income
(dollars in thousands) |  | Portion) |  |  | interest income |  | (Ineffective Portion)
Interest rate contracts |  | $ | 160 |  |  | $ | - |  | $ | -
| Three Months Ended March 31, 2016
|  | Amount of gain |  | Amount of gain |  | Amount of gain (loss)
|  | (loss) recognized |  | (loss) reclassified |  | recognized in other
|  | in OCI (Effective |  | from OCI to |  | Noninterest income
(dollars in thousands) |  | Portion) |  | interest income |  | (Ineffective Portion)
Interest rate contracts |  | $ | (1,437 | ) |  | $ | - |  | $ | -
The following table reflects the cash flow hedges included in the consolidated statements of condition as of March 31, 2017 and December 31, 2016:
|  | March 31, 2017 |  | December 31, 2016
|  | Notional |  |  |  |  | Notional |  |  |
(dollars in thousands) |  | Amount |  | Fair Value |  | Amount |  | Fair Value
Interest rate swaps related to FHLB advances included in assets |  | $ | 75,000 |  | $ | 248 |  | $ | 75,000 |  | $ | 88

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- 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
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