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Financial Derivative Instruments | 6 Months Ended
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Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Derivative Instruments | Financial Derivative Instruments As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments in the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. In 2016, then again in 2018, interest rate swaps were contracted to limit the Company’s exposure to rising interest rates on short-term liabilities indexed to one-month London Inter-bank Offered Rates (LIBOR). The interest rate swaps were designated as cash flow hedges. The details of the interest rate swap agreements are as follows:
|  |  |  |  | June 30, 2018 | December 31, 2017 | June 30, 2017
Notional Amount | Effective Date | Maturity Date | Variable Index Received | Fixed Rate Paid | Fair Value(1) | Fair Value(1) | Fair Value(1)
$ | 30,000,000 |  | June 28, 2016 | June 28, 2021 | 1-Month USD LIBOR | 0.940 | % | $ | 1,521,000 |  | $ | 1,154,000 |  | $ | 952,000 |
20,000,000 |  | June 27, 2016 | June 27, 2021 | 1-Month USD LIBOR | 0.893 | % | 1,041,000 |  | 801,000 |  | 671,000 |
25,000,000 |  | June 5, 2018 | December 5, 2019 | 1-Month USD LIBOR | 2.466 | % | 11,000 |  | — |  | — |
25,000,000 |  | June 5, 2018 | June 5, 2020 | 1-Month USD LIBOR | 2.547 | % | 19,000 |  | — |  | — |
25,000,000 |  | June 5, 2018 | December 5, 2020 | 1-Month USD LIBOR | 2.603 | % | 24,000 |  | — |  | — |
$ | 125,000,000 |  |  |  |  |  | $ | 2,616,000 |  | $ | 1,955,000 |  | $ | 1,623,000 |
(1) Presented within other assets in the consolidated balance sheet. The Company would reclassify unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings if the interest rate swaps were to become ineffective or the swaps were to terminate. In the next 12 months, the Company does not believe it will be required to reclassify any unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings as a result of ineffectiveness or swap termination. Amounts paid or received under the swaps are reported in interest expense in the statement of income, and in interest paid in the statement of cash flows.

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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