Derivative and other Hedging Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Location of Derivatives Instruments on Balance Sheet

The table below presents the fair value of the Company’s derivative instruments as well as their classification on the balance sheets as of June 30, 2013 and December 31, 2012, respectively.

Derivative Instruments	Balance Sheet Location	June 30, 2013		December 31, 2012
Interest rate swaps	Interest rate hedge asset	$	25,921	$	-
Forward purchase commitments	Other assets		-		5,452
Futures contracts	Other assets		5,587		-
Interest rate swaps	Interest rate hedge liability	$	157,869	$	243,945
Forward purchase commitments	Accounts payable and other liabilities		43,724	$	-

Hedging Exposure Future Cash Flows with Interest Rate Swaps For Forecasted Transactions

The table below shows the remaining term of the Company’s interest rate swaps as of June 30, 2013.

			Remaining	Weighted Average
	Notional		Term	Fixed Interest
Maturity	Amount		in Months	Rate in Contract
12 months or less	$	1,200,000	7	1.90%
Over 12 months to 24 months		3,800,000	19	1.78%
Over 24 months to 36 months		2,700,000	30	1.30%
Over 36 months to 48 months		2,600,000	43	0.91%
Over 48 months to 60 months		800,000	53	0.93%
Total	$	11,100,000	28	1.41%

Gross Amounts Associated With Derivative Financial Instruments

The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of June 30, 2013.

	Assets		Cash Collateral Posted		Net Amount
Interest rate swaps	$	25,921	$	-	$	25,921
Futures contracts		5,587		4,862		10,449
	Liabilities		Cash Collateral Posted		Net Amount
Interest rate swaps	$	157,869	$	144,348	$	13,521
Forward purchase commitments

The following table shows the gross amounts associated with the Company’s derivative financial instruments and the impact if netting were used as of December 31, 2012.

	Assets		Cash Collateral Posted		Net Amount
Forward purchase commitments	$	5,452	$	-	$	5,452
	Liabilities		Cash Collateral Posted		Net Amount
Interest rate swaps	$	243,945	$	281,021	$	(37,076)

Schedule of Location of Derivatives on Income Statement

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the three months ended June 30, 2013.

Derivative type for cash flow hedge	Amount of gain recognized in OCI on derivative (effective portion)		Location of loss reclassified from accumulated OCI into income (effective portion)	Amount of loss reclassified from accumulated OCI into income (effective portion)		Location of gain recognized in income on derivative (ineffective portion)	Amount of gain recognized in income on derivative (ineffective portion)
Interest Rate	$	57,294	Interest Expense	$	30,585	Interest Expense	$	212

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the three months ended June 30, 2012.

Derivative type for cash flow hedge	Amount of loss recognized in OCI on derivative (effective portion)		Location of loss reclassified from accumulated OCI into income (effective portion)	Amount of loss reclassified from accumulated OCI into income (effective portion)		Location of loss recognized in income on derivative (ineffective portion)	Amount of loss recognized in income on derivative (ineffective portion)
Interest Rate	$	59,168	Interest Expense	$	28,352	Interest Expense	$	169

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the six months ended June 30, 2013.

Derivative type for cash flow hedge	Amount of gain recognized in OCI on derivative (effective portion)		Location of loss reclassified from accumulated OCI into income (effective portion)	Amount of loss reclassified from accumulated OCI into income (effective portion)		Location of gain recognized in income on derivative (ineffective portion)	Amount of gain recognized in income on derivative (ineffective portion)
Interest Rate	$	51,385	Interest Expense	$	60,515	Interest Expense	$	96

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the six months ended June 30, 2012.

Derivative type for cash flow hedge	Amount of loss recognized in OCI on derivative (effective portion)		Location of loss reclassified from accumulated OCI into income (effective portion)	Amount of loss reclassified from accumulated OCI into income (effective portion)		Location of gain recognized in income on derivative (ineffective portion)	Amount of gain recognized in income on derivative (ineffective portion)
Interest Rate	$	87,591	Interest Expense	$	56,164	Interest Expense	$	338

Interest Rate Swap

Schedule of Interest Rate Swap Agreements on Accumulated Other Comprehensive Income

The following table presents the impact of the Company’s interest rate swap agreements on the Company’s accumulated other comprehensive income (loss) for the six months ended June 30, 2013 and the year ended December 31, 2012, respectively.

	June 30, 2013		December 31, 2012
Beginning balance		(243,051)		($218,451)
Unrealized gain (loss) on interest rate swaps		51,385		(141,392)
Reclassification of net losses included in income statement		60,515		116,792
Ending balance		$                        (131,151)		$                        (243,051)