Derivatives

12 Months Ended

Dec. 31, 2016

Summary of Derivative Instruments [Abstract]

Derivatives

DERIVATIVES

BancShares had an interest rate swap entered into during 2011 that qualified as a cash flow hedge under GAAP. The interest rate swap agreement expired in June 2016. At December 31, 2015, the interest rate swap had a notional amount of $93.5 million and the fair value of the outstanding derivative, which was included in the Consolidated Balance Sheets, was $1.4 million. The net change in fair value was included in the Consolidated Statements of Cash Flows under the caption net change in other liabilities.

For the year ended December 31, 2016, BancShares recognized interest expense of $1.5 million, and for the years ended December 31, 2015 and 2014, recognized interest expense of $3.3 million for both periods, resulting from incremental interest paid to the interest rate swap counterparty, none of which related to ineffectiveness.