Derivatives

9 Months Ended

Sep. 30, 2012

Derivatives [Abstract]

Derivatives

Note 9. Derivatives

The Company utilizes derivative instruments to assist in the management of interest rate sensitivity by modifying the repricing, maturity and option characteristics on commercial real estate loans held for sale. The Company entered into two interest rate swap agreements with an aggregate notional amount of $5.9 million. These swap agreements provide for the Company to receive an adjustable rate of interest based upon the three-month London Interbank Offering Rate (LIBOR). The Company recorded expense on derivative instruments of $14,000 for the nine months ended September 30, 2012. It recorded income of $156,000 for the nine months ended September 30, 2012 to recognize fair value income on related commercial real estate loans held for sale. The amount payable by the Company under these swap agreements was $14,000 at September 30, 2012.

The maturity dates, notional amounts, interest rates paid and received and fair value of the Company's remaining interest rate swap agreements as of September 30, 2012 are summarized below (in thousands):

	September 30, 2012
Maturity date	Notional amount		Interest rate paid			Interest rate received			Fair value
August 1, 2022	$	2,200		1.64	%		0.44	%	$	5
September 27, 2022		3,700		1.74	%		0.36	%		(19	)
Total	$	5,900							$	(14	)