XML 57 R47.htm IDEA: XBRL DOCUMENT
v3.20.2

Note 16: Derivatives and Hedging Activities: Nondesignated Hedges (Policies) | 9 Months Ended
--- | ---
Sep. 30, 2020
Policies |
Nondesignated Hedges | The Company has interest rate swaps that are not designated as qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers, which the Company began offering during 2011. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As part of the Valley Bank FDIC-assisted acquisition, the Company acquired seven loans with related interest rate swaps. Valley’s swap program differed from the Company’s in that Valley did not have back to back swaps with the customer and a counterparty. Five of the seven acquired loans with interest rate swaps have paid off. The aggregate notional amount of the two remaining Valley swaps was $609,000 at September 30, 2020. At September 30, 2020, excluding the Valley Bank swaps, the Company had 19 interest rate swaps totaling $115.6 million in notional amount with commercial customers, and 19 interest rate swaps with the same aggregate notional amount with third parties related to its program. In addition, the Company has four participation loans purchased totaling $27.8 million, in which the lead institution has an interest rate swap with its customer and the economics of the counterparty swap are passed along to the Company through the loan participation. At December 31, 2019, excluding the Valley Bank swaps, the Company had 19 interest rate swaps totaling $96.0 million in notional amount with commercial customers, and 19 interest rate swaps with the same notional amount with third parties related to its program. During the three months ended September 30, 2020 and 2019, the Company recognized net gains of $89,000 and net losses of $101,000, respectively, in noninterest income related to changes in the fair value of these swaps. During the nine months ended September 30, 2020 and 2019, the Company recognized net losses of $424,000 and $169,000, respectively, in noninterest income related to changes in the fair value of these swaps.

X
- Definition Represents the textual narrative disclosure of Nondesignated Hedges, during the indicated time period. + References No definition available. + Details
Name: | fil_NondesignatedHedgesTextBlock
Namespace Prefix: | fil_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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