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Derivatives
 12 Months Ended
Dec. 31, 2015
Derivatives [Abstract]  
Derivatives

Note R –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.  These instruments are not accounted for as hedges.  As of December 31, 2015, the Company had entered into thirteen interest rate swap agreements with an aggregate notional amount of $68.7 million.  These swap agreements provide for the Company to receive an adjustable rate of interest based upon LIBOR.  The Company recorded income of $984,000 for the year ended December 31, 2015 and a loss of $1.4 million and income of $436,000, respectively,  for the years ended December 31, 2014 and 2013 to recognize the fair value of derivative instruments.  At December 31, 2015 and 2014, the amount payable by the Company under these swap agreements was $60,000 and $1.1 million, respectively.    At December 31, 2015 and 2014, the Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $400,000 and $3.6 million, 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, 2015 are summarized below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

Maturity date

 

Notional amount

 

Interest rate paid

 

Interest rate received

 

Fair value

August 17, 2025

 

$                    4,000 

 

 2.27% 

 

 0.36% 

 

$             (39)

August 17, 2025

 

 2,500 

 

 2.27% 

 

 0.36% 

 

 (24)

August 17, 2025

 

 2,500 

 

 2.27% 

 

 0.36% 

 

 (24)

October 7, 2025

 

 3,200 

 

 2.06% 

 

 0.62% 

 

 33 

November 27, 2025

 

 1,700 

 

 2.10% 

 

 0.41% 

 

 11 

December 11, 2025

 

 2,400 

 

 2.14% 

 

 0.49% 

 

 10 

December 15, 2025

 

 5,300 

 

 2.10% 

 

 0.51% 

 

 40 

December 17, 2025

 

 3,300 

 

 2.18% 

 

 0.53% 

 

 1 

December 22, 2025

 

 4,100 

 

 2.14% 

 

 0.59% 

 

 17 

December 23, 2025

 

 6,800 

 

 2.16% 

 

 0.59% 

 

 20 

December 24, 2025

 

 8,200 

 

 2.17% 

 

 0.59% 

 

 10 

December 29, 2025

 

 9,900 

 

 2.20% 

 

 0.60% 

 

 (13)

December 30, 2025

 

 14,800 

 

 2.19% 

 

 0.60% 

 

 1 

Total

 

$                  68,700 

 

 

 

 

 

$               43