Derivatives and Hedging (Notes)

9 Months Ended

Sep. 30, 2015

Derivative [Line Items]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

	September 30, 2015				December 31, 2014
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
Derivatives designated as hedges:
Interest rate swap-liabilities	$	100,000	$	436	$	—	$	—
Non-hedging interest rate derivatives:
Interest rate swap-assets	9,456		918		3,149		61
Interest rate swap-liabilities	9,456		964		3,149		59

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivatives and Hedging Activities

For asset and liability management purposes, the Company has entered into interest rate swap contracts to hedge against changes in forecasted cash flows due to interest rate exposures. Interest rate swaps are contracts in which a series of interest payments are exchanged over a prescribed period. The notional amount upon which the interest payments are based is not exchanged. The swap agreements are derivative instruments and convert a portion of the Company’s forecasted variable rate debt to a fixed rate (i.e., cash flow hedge) over the payment term of the interest rate swap. The effective portion of the gain or loss on cash flow hedging instruments is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same period during which the transaction affects earnings. The ineffective portion of the gain or loss on derivative instruments, if any, is recognized in earnings. The Company does not enter into interest rate swap agreements for trading or speculative purposes.

The Company also enters into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with a third party financial institution. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company's results of operations.

The notional amounts and estimated fair values of the Company's interest rate swap contract are presented in the following table. Fair value estimates are obtained from third parties and are based on pricing models.

	September 30, 2015				December 31, 2014
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
Derivatives designated as hedges:
Interest rate swap-liabilities	$	100,000	$	436	$	—	$	—
Non-hedging interest rate derivatives:
Interest rate swap-assets	9,456		918		3,149		61
Interest rate swap-liabilities	9,456		964		3,149		59

On September 22, 2015, the Company entered into an interest rate swap derivative liability with a notional amount of $100,000 that was designated as a cash flow hedge. Under the terms of the interest rate swap contract, the Company pays a fixed interest rate of 1.94% and the counterparty pays to the Company a variable interest rate equal to the three-month LIBOR. No cash is exchanged until the effective date, which begins on September 15, 2017 and ends on September 15, 2020. The Company designated the interest payments related to Federal Home Loan Bank borrowings as the cash flow hedge. The hedge was fully effective during the current period. As such, no amount of ineffectiveness was included in the Company's income statement for the three or nine months ended September 30, 2015. The fair value of the interest rate swap is included in other liabilities in the Company's balance sheet with changes in fair value recorded in other comprehensive income. The Company expects the hedge to remain highly effective during the remaining term of the interest rate swap.

The following table presents the pre-tax gains or losses related to the interest rate swap derivative contracts recorded in accumulated other comprehensive income and other non-interest income in the Company's statement of income:

	Three months ended				Nine months ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Derivatives designated as hedges:
Amount of loss recognized in other comprehensive income (effective portion)	$	436	$	—	$	436	$	—
Non-hedging interest rate derivatives:
Amount of loss recognized in other non-interest income	31		—		48		—