Derivatives

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 5. Derivatives

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap 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 interest rate swap agreements.

Interest rate swaps were entered into on October 15, 2014 and December 30, 2014, each with a respective notional amount of $25.0 million and were designated as a cash flow hedge of a Federal Home Loan Bank advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps.

Summary information about the interest rate swaps designated as cash flow hedges as of June 30, 2015 and 2014 and December 31, 2014 is presented in the following table.

(dollars in thousands)	June 30, 2015			December 31, 2014			June 30, 2014
Notional amount	$	50,000		$	50,000		$	—
Weighted average pay rates		1.58	%		1.58	%		—	%
Weighted average receive rates		0.26	%		0.24	%		—	%
Weighted average maturity		3.9 years			4.4 years			—
Fair value	$	(250	)	$	48		$	—

Interest expense recorded on these swap transactions totaled approximately $165,000 and $331,000 for the three and six months ended June 31, 2015, respectively. There were 0 related expenses during the six months ended June 30, 2014.

Cash Flow Hedge

The following table presents the net gains (losses), recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the six months ended June 30, 2015:

	2015
(in thousands)	Amount of loss recognized in OCI (Effective Portion)			Amount of loss reclassified from OCI to interest income		Amount of loss recognized in other Non-interest income (Ineffective Portion)
Interest rate contracts	$	(298	)	$	—	$	—

There were 0 net gains (losses) recorded in accumulated other comprehensive income or in the Consolidated Statement of Income relating to cash flow derivative instruments for the six months ended June 30, 2014.