Derivatives (Notes)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative [Text Block]

Derivatives

The Company has entered into various forward-starting interest rate swap transactions to effectively convert variable rate FHLB advances and junior subordinated notes to fixed rate debt as of forward-starting dates. The swap transactions were designated as cash flow hedges. Interest rate swaps with a total notional amount of $70,000 were terminated in 2015, subject to termination fees totaling $541. The termination fees are being reclassified from accumulated other comprehensive income to interest expense over the remaining life of the underlying cash flows through June 2020. An interest rate swap with a notional amount of $30,000 became effective in December 2015. Another interest rate swap, with a notional amount of $20,000, has a forward-starting date in September 2018. No amount of ineffectiveness was included in net income for the six months ended June 30, 2017 or 2016, and the Company estimates there will be approximately $426 of cash payments and reclassification from accumulated other comprehensive income to interest expense through the 12 months ended June 30, 2018. Derivative contracts are executed with a Credit Support Annex, which is a bilateral ratings-sensitive agreement that requires collateral postings at established credit threshold levels. These agreements protect the interests of the Company and its counterparties should either party suffer a credit rating deterioration. As of June 30, 2017 and December 31, 2016, the Company pledged $470 and $470, respectively, of collateral to the counterparty in the form of cash on deposit with a third party. The Company's counterparty was required to pledge $830 and $1,070 at June 30, 2017 and December 31, 2016, respectively.

The table below identifies the balance sheet category and fair values of the Company's derivative instruments designated as cash flow hedges as of June 30, 2017 and December 31, 2016.

Interest Rate Swap	Notional Amount		Fair Value			Balance Sheet Category	Weighted Average Receive Rate		Weighted Average Pay Rate		Maturity
June 30, 2017
Interest rate swap	$	30,000	$	(447	)	Other Liabilities	1.46	%	2.52	%	9/21/2020
Interest rate swap(1)	20,000		840			Other Assets	—		4.81	%	9/30/2026
December 31, 2016
Interest rate swap	30,000		(496		)	Other Liabilities	1.30	%	2.52	%	9/21/2020
Interest rate swap(1)	20,000		1,068			Other Assets	—		4.81	%	9/30/2026

(1) This swap is a forward starting swap with a weighted average pay rate of 4.81 percent beginning September 30, 2018. No interest payments are required related to this swap until December 30, 2018.

The following table identifies the pre-tax losses recognized on the Company's derivative instruments designated as cash flow hedges for the six months ended June 30, 2017 and 2016.

	Effective Portion							Ineffective Portion
	Amount of			Reclassified from AOCI into Income				Recognized in Income on Derivatives
	Pre-tax (Loss)
	Recognized				Amount of				Amount of
Interest Rate Swap	in OCI			Category	(Loss)			Category	Gain (Loss)
June 30, 2017	$	(347	)	Interest Expense	$	(223	)	Other Income	$	—
June 30, 2016	(1,137		)	Interest Expense	(298		)	Other Income	—