Derivatives (Notes)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivatives

The Company utilizes an interest rate swap, designated as a fair value hedge, to mitigate the risk of changing interest rates on the fair value of a fixed rate commercial real estate loan. For derivative instruments that are designed and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain in the hedged asset attributable to the hedged risk, is recognized in current earnings.

A summary of the Company's fair value hedge as of June 30, 2019, is as follows (in thousands):

	June 30, 2019
Derivative	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Pay Rate		Received Rate	Notional Amount		Estimated Value
Interest rate swap agreement	Other liabilities	9.9 years	4.5	%	1 month LIBOR + 231.5bps	$	9,783	$	293

The effects of the fair value hedge on the Company's income statement during the three and six months ended June 30, 2019 were as follows (in thousands):

		Three months ended June 30,			Six months ended June 30,
Derivative	Location of Gain (Loss) on Derivative	2019			2019
Interest rate swap agreement	Interest income on loans	$	(293	)	$	(293	)
		Three months ended June 30,			Six months ended June 30,
Derivative	Location of Gain (Loss) on Hedged Item	2019			2019
Interest rate swap agreement	Interest income on loans	$	293		$	293

As of June 30, 2019, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges (in thousands):

Line Item in the Balance Sheet in Which the Hedge Item is Included	Carrying Amount of the Hedged Asset			Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
Loans		$	10,076		$	293