Derivative Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 7. Derivative Financial Instrument

On February 21, 2006, the Company entered into a zero cost interest rate collar with Wells Fargo to hedge future interest payments on a portion of the Junior Subordinated Debentures. The notional amount of the collar was $18,042 with an effective date of March 6, 2006. The collar has a LIBOR floor of 4.77% and a LIBOR cap of 5.85% and adjusted quarterly on the 4th of each March, June, September and December through its termination date of March 4, 2013. The Company began making payments to Wells Fargo under the zero cost interest rate collar on June 4, 2008. As a result of interest rates remaining below the LIBOR floor of 4.77% through 2012, these payments to Wells Fargo continued through the maturity date.

The estimated fair value and related carrying value of the Company's interest rate collar at December 31, 2012 was a liability of approximately $141 with a corresponding decrease in AOCI in shareholders' equity, net of deferred tax.