Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Information on our derivatives follows:



	Asset derivatives				Liability derivatives
(in thousands; 2015 unaudited)	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Fair value hedges:
Interest rate contracts notional amount	$	—	$	4,589	$	30,992	$	26,899
Interest rate contracts fair value¹	$	—	$	61	$	2,481	$	1,996

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance



	Three months ended
(in thousands; unaudited)	March 31, 2015			March 31, 2014
(Decrease) increase in value of designated interest rate swaps recognized in interest income	$	(546	)	$	736
Payment on interest rate swaps recorded in interest income	(235		)	(253		)
Increase (decrease) in value of hedged loans recognized in interest income	571			(531		)
Decrease in value of yield maintenance agreement recognized against interest income	(14		)	(47		)
Net loss on derivatives recognized against interest income ²	$	(224	)	$	(95	)

¹See Note 3 for valuation methodology.

²Includes hedge ineffectiveness gain of $11 thousand and gain of $158 thousand for the quarters ended March 31, 2015 and March 31, 2014, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness.

Offsetting Assets

Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:



Offsetting of Financial Assets and Derivative Assets

(in thousands; 2015 unaudited)							Gross Amounts Not Offset in the Statements of Condition
			Gross Amounts		Net Amounts
	Gross Amounts		Offset in the		of Assets Presented
	of Recognized		Statements of		in the Statements		Financial			Cash Collateral
	Assets¹		Condition		of Condition¹		Instruments			Received		Net Amount
As of March 31, 2015
Derivatives by Counterparty
Counterparty A	$	—	$	—	$	—	$	—		$	—	$	—
Counterparty B	—		—		—		—			—		—
Total	$	—	$	—	$	—	$	—		$	—	$	—

As of December 31, 2014
Derivatives by Counterparty
Counterparty A	$	61	$	—	$	61	$	(61	)	$	—	$	—
Counterparty B	—		—		—		—			—		—
Total	$	61	$	—	$	61	$	(61	)	$	—	$	—

¹Amounts exclude accrued interest totaling zero and $1 thousand at March 31, 2015 and December 31, 2014, respectively.

Offsetting Liabilities



Offsetting of Financial Liabilities and Derivative Liabilities

(in thousands; 2015 unaudited)							Gross Amounts Not Offset in the Statements of Condition
			Gross Amounts		Net Amounts of
	Gross Amounts		Offset in the		Liabilities Presented
	of Recognized		Statements of		in the Statements of		Financial			Cash Collateral
	Liabilities²		Condition		Condition²		Instruments			Pledged			Net Amount
As of March 31, 2015
Derivatives by Counterparty
Counterparty A	$	2,107	$	—	$	2,107	$	—		$	(2,107	)	$	—
Counterparty B	374		—		374		—			(374		)	—
Total	$	2,481	$	—	$	2,481	$	—		$	(2,481	)	$	—

As of December 31, 2014
Derivatives by Counterparty
Counterparty A	$	1,616	$	—	$	1,616	$	(61	)	$	(1,360	)	$	195
Counterparty B	380		—		380		—			(380		)	—
Total	$	1,996	$	—	$	1,996	$	(61	)	$	(1,740	)	$	195

²Amounts exclude accrued interest totaling $40 thousand and $39 thousand at March 31, 2015 and December 31, 2014, respectively.