DERIVATIVES AND FINANCIAL INSTRUMENTS	3 Months Ended
Mar. 31, 2020
DERIVATIVES AND FINANCIAL INSTRUMENTS
DERIVATIVES AND FINANCIAL INSTRUMENTS	NOTE 10 – DERIVATIVES AND FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, the Company uses derivative instruments, including interest rate swaps. The notional amount 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 agreements. Cash Flow Hedges: Interest rate swaps with notional amounts totaling $23 million and $10 million as of March 31, 2020 and December 31, 2019, were designated as cash flow hedges of certain rolling three month term FHLB advances and were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the cash flow hedge was a liability of $2.6 million as of March 31, 2020 and an asset of $46 thousand as of December 31, 2019. Fair Value Hedges: Interest rate swaps with notional amounts totaling $7 million and $7 million as of March 31, 2020 and December 31, 2019 were designated as fair value last of layer hedges of certain fixed rate prepayable loans. The hedges were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the fair value hedge liability was $664 thousand and $164 thousand as of March 31, 2020 and December 31, 2019 and was included in other liabilities on the Company’s balance sheet. Derivatives Not Designated as Hedges: The Company also enters into interest rates swaps with its loan customers. The notional amounts of interest rate swaps with its loan customer as of March 31, 2020 and December 31, 2019 were $26.7 million and $7.4 million. The Company enters into corresponding offsetting derivatives with third parties. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes. The carrying value of the fair value asset and liability was $237 thousand and $48 thousand as of March 31, 2020 and December 31, 2019 and was included in other assets and other liabilities on the Company’s balance sheet.

NOTE 10 – DERIVATIVES AND FINANCIAL INSTRUMENTS

As part of our overall interest rate risk management, the Company uses derivative instruments, including interest rate swaps. The notional amount 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 agreements.

Cash Flow Hedges: Interest rate swaps with notional amounts totaling $23 million and $10 million as of March 31, 2020 and December 31, 2019, were designated as cash flow hedges of certain rolling three month term FHLB advances and were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the cash flow hedge was a liability of $2.6 million as of March 31, 2020 and an asset of $46 thousand as of December 31, 2019.

Fair Value Hedges: Interest rate swaps with notional amounts totaling $7 million and $7 million as of March 31, 2020 and December 31, 2019 were designated as fair value last of layer hedges of certain fixed rate prepayable loans. The hedges were determined to be effective during all periods presented. The Company expects the hedges to remain effective during the remaining terms of the swaps. The carrying value of the fair value hedge liability was $664 thousand and $164 thousand as of March 31, 2020 and December 31, 2019 and was included in other liabilities on the Company’s balance sheet.

Derivatives Not Designated as Hedges: The Company also enters into interest rates swaps with its loan customers. The notional amounts of interest rate swaps with its loan customer as of March 31, 2020 and December 31, 2019 were $26.7 million and $7.4 million. The Company enters into corresponding offsetting derivatives with third parties. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes. The carrying value of the fair value asset and liability was $237 thousand and $48 thousand as of March 31, 2020 and December 31, 2019 and was included in other assets and other liabilities on the Company’s balance sheet.