Note 17 - Derivative Financial Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

17.   Derivative Financial Instruments and Hedging Activities 

At June 30, 2013 and December 31, 2012, the Company’s only derivative instruments related to residential mortgage banking activities.

At June 30, 2013, the notional amount of commitments to originate conforming mortgage loans held for sale totaled $15.2 million. These derivative loan commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $178 thousand and negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $65 thousand. At December 31, 2012, the notional amount of commitments to originate conforming mortgage loans held for sale totaled $11.1 million. These derivative loan commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $338 thousand. The net change in derivative loan commitment fair values during the three months ended June 30, 2013 and 2012 resulted in (expense) income of ($237) thousand and $23 thousand, respectively. The net change in derivative loan commitment fair values during the six months ended June 30, 2013 and 2012 resulted in (expense) income of ($225) thousand and $71 thousand, respectively.

The notional amount of forward sales commitments totaled $12.6 million at June 30, 2013. These forward sales commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $206 thousand and negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $19 thousand. The notional amount of forward sales commitments totaled $11.8 million at December 31, 2012. These forward sales commitments had positive fair values, included within Other assets in the Consolidated Balance Sheets, totaling $33 thousand and negative fair values, included within Other liabilities in the Consolidated Balance Sheets, totaling $5 thousand. The net change in forward sales commitment fair values during the three months ended June 30, 2013 and 2012 resulted in income of $249 thousand and $142 thousand, respectively. The net change in forward sales commitment fair values during the six months ended June 30, 2013 and 2012 resulted in income of $160 thousand and $202 thousand, respectively.