Derivatives (Notes)

12 Months Ended

Dec. 31, 2015

Derivatives [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivatives

The Company uses interest rate swap agreements to manage the interest rate risk related to the variability of interest payments. The Company has variable rate FHLB advances and junior subordinated notes, which create exposure to variability in interest payments due to changes in interest rates. The notional amounts of the interest rate swaps do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties.

In 2012 and 2013, the Company entered into forward-starting interest rate swap transactions to effectively convert variable rate FHLB advances and junior subordinated notes to fixed rate debt as of the forward-starting dates. The swap transactions were designated as cash flow hedges of the changes in cash flows attributable to changes in LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on the underlying debt with quarterly interest rate reset dates. Three interest rate swaps, with a total notional amount of $70,000, have been terminated, subject to termination fees totaling $541. The termination fees will be reclassified from accumulated other comprehensive income to interest expense over the remaining life of the underlying cash flows, through June 2020. The remaining interest rate swap, with a notional amount of $30,000, became effective in December 2015.

At the inception of each hedge transaction, the Company represented that the underlying principal balance would remain outstanding throughout the hedge transaction, making it probable that sufficient LIBOR-based interest payments would exist through the maturity date of the swaps. The cash flow hedges were determined to be fully effective during the remaining terms of the swaps. Therefore, the aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in market value recorded in OCI, net of deferred taxes. See Note 18 for additional fair value information and disclosures. The amounts included in AOCI will be reclassified to interest expense should the hedge no longer be considered effective. No amount of ineffectiveness was included in net income for the years ended December 31, 2015, 2014 and 2013, and the Company estimates there will be approximately $601 of cash payments and reclassification from AOCI to interest expense through December 31, 2016. The Company will continue to assess the effectiveness of the remaining hedge on a quarterly basis.

The Company is exposed to credit risk in the event of nonperformance by the interest rate swap counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate swaps. The Company monitors counterparty risk in accordance with the provisions of FASB ASC 815. In addition, the interest rate swap agreement contains language outlining collateral-pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain threshold limits. The Company had pledged $740 of collateral to the counterparty as of December 31, 2015. The Company was not required to pledge any collateral to the counterparty as of December 31, 2014.

The table below identifies the balance sheet category and fair values of the Company's derivative instruments designated as cash flow hedges as of December 31, 2015 and 2014.

Interest Rate Swaps	Notional Amount		Fair Value		Balance Sheet Category	Weighted Average Receive Rate		Weighted Average Pay Rate		Maturity
December 31, 2015	$	30,000	$	774	Other Liabilities	0.88	%	2.52	%	9/21/2020
December 31, 2014	$	80,000	$	261	Other Liabilities	0.54%-0.56%		2.10%-2.52%		12/23/2019 - 9/21/2020

The following table identifies the pretax gains (losses) recognized on the Company's derivative instruments designated as cash flow hedges for the years ended December 31, 2015, 2014 and 2013.

	Effective Portion							Ineffective Portion
	Amount of			Reclassified from AOCI into Income				Recognized in Income on Derivatives
	Pretax Loss
	Recognized in				Amount of				Amount of
Interest Rate Swaps	OCI			Category	Gain (Loss)			Category	Gain (Loss)
2015	$	(1,144	)	Interest Expense	$	(160	)	Other Income	$	—
2014	$	(3,759	)	Interest Expense	$	(83	)	Other Income	$	—
2013	$	4,159		Interest Expense	$	—		Other Income	$	—