Derivatives

12 Months Ended

Dec. 31, 2013

Derivatives [Abstract]

Derivatives

Note Q  –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 nine interest rate swap agreements with an aggregate notional amount of $43.5 million which were outstanding at December 31, 2013. 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 income of $3.2 million,  $126,000 and $0, included in gain on sale of loans, for the years ended December 31, 2013, 2012 and 2011 to recognize the fair value on derivative instruments.  The amount payable by the Company under these swap agreements was $423,000 at December 31, 2013 and $37,000 in 2012, as recorded in other liabilities.At December 31, 2013 and 2012, the Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $0 and $0, respectively.

The maturity dates, notional amounts, interest rates paid and received and fair value of the Company’s remaining interest rate swap agreements as of December  31, 2013are summarized below (in thousands):

	December 31, 2013
Maturity date	Notional amount	Interest rate paid	Interest rate received	Fair value
November 5, 2018	$                    6,100	1.51%	0.24%	$               56
December 4, 2023	8,400	2.91%	0.24%	116
December 10, 2023	4,400	2.93%	0.24%	52
December 12, 2023	5,700	2.88%	0.24%	95
December 13, 2023	2,800	2.90%	0.24%	41
December 13, 2023	1,900	2.88%	0.24%	31
December 16, 2023	4,400	2.94%	0.24%	48
December 23, 2023	5,800	3.00%	0.25%	36
December 30, 2023	4,000	3.05%	0.25%	6
Total	$                  43,500			$             481