Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2016

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)	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
Fair value hedges:
Interest rate contracts notional amount	$	4,217	$	4,407	$	15,495	$	22,187
Interest rate contracts fair value¹	$	55	$	3	$	933	$	1,658

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



	Years ended December 31,
(in thousands)	2016			2015			2014
Increase (decrease) in value of designated interest rate swaps due to LIBOR interest rate movements recognized in interest income	$	778		$	280		$	(377	)
Payment on interest rate swaps recorded in interest income	(556		)	(918		)	(1,002		)
(Decrease) increase in value of hedged loans recognized in interest income	(571		)	(308		)	662
Decrease in value of yield maintenance agreement recognized against interest income	(94		)	(52		)	(91		)
Net loss on derivatives recognized against interest income ²	$	(443	)	$	(998	)	$	(808	)

¹See Note 9, Fair Value of Assets and Liabilities for valuation methodology.

² Includes hedge ineffectiveness gain of $113 thousand, loss of $80 thousand and gain of $194 thousand for the years December 31, 2016, 2015 and 2014, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. Hedge ineffectiveness is the measure of the extent to which the change in the fair value of the hedging instruments does not exactly offset the change in the fair value of the hedged items from period to period.

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
							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
(in thousands)	Assets¹		Condition		of Condition¹		Instruments			Received		Net Amount
December 31, 2016
Derivatives by Counterparty:
Counterparty A	$	55			$	55	$	(55	)			$	—
Total	$	55	$	—	$	55	$	(55	)	$	—	$	—

December 31, 2015
Derivatives by Counterparty:
Counterparty A	$	3	$	—	$	3	$	(3	)	$	—	$	—
Total	$	3	$	—	$	3	$	(3	)	$	—	$	—

¹Amounts exclude accrued interest totaling $1 thousand at both December 31, 2016 and December 31, 2015, respectively.



Offsetting of Financial Liabilities and Derivative Liabilities
							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
(in thousands)	Liabilities²		Condition		Condition²		Instruments			Pledged			Net Amount
December 31, 2016
Derivatives by Counterparty:
Counterparty A	$	933			$	933	$	(55	)	(878		)	$	—
Total	$	933	$	—	$	933	$	(55	)	$	(878	)	$	—

December 31, 2015
Derivatives by Counterparty:
Counterparty A	$	1,390	$	—	$	1,390	$	(3	)	$	(1,387	)	$	—
Counterparty B	268		—		268		—			(268		)	—
Total	$	1,658	$	—	$	1,658	$	(3	)	$	(1,655	)	$	—

Offsetting Liabilities



Offsetting of Financial Liabilities and Derivative Liabilities
							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
(in thousands)	Liabilities²		Condition		Condition²		Instruments			Pledged			Net Amount
December 31, 2016
Derivatives by Counterparty:
Counterparty A	$	933			$	933	$	(55	)	(878		)	$	—
Total	$	933	$	—	$	933	$	(55	)	$	(878	)	$	—

December 31, 2015
Derivatives by Counterparty:
Counterparty A	$	1,390	$	—	$	1,390	$	(3	)	$	(1,387	)	$	—
Counterparty B	268		—		268		—			(268		)	—
Total	$	1,658	$	—	$	1,658	$	(3	)	$	(1,655	)	$	—

²Amounts exclude accrued interest totaling $12 thousand and $27 thousand at December 31, 2016 and December 31, 2015, respectively.