Derivative and other Hedging Instruments (Tables)

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012, respectively.

Derivative Instruments	Balance Sheet Location	September 30, 2013		December 31, 2012
Interest rate swaps	Interest rate hedge asset	$	13,626	$	-
Forward purchase commitments	Other assets	$	6,904	$	5,452
Interest rate swaps	Interest rate hedge liability	$	147,954	$	243,945
Futures Contracts	Futures contract liability	$	44,593	$	-

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 September 30, 2013.

			Remaining	Weighted Average
	Notional		Term	Fixed Interest
Maturity	Amount		in Months	Rate in Contract
12 months or less	$	1,400,000	8	1.85%
Over 12 months to 24 months		4,000,000	19	1.70%
Over 24 months to 36 months		2,400,000	30	1.10%
Over 36 months to 48 months		2,200,000	42	0.88%
Over 48 months to 60 months		600,000	52	0.95%
Total	$	10,600,000	27	1.37%

Schedule of Fair Value of Futures Contracts

	Fair Value         Futures Contracts
Futures Contracts designed to replicate swaps		($41,106)
Futures Contracts designed to hedge value changes in forward purchases		(3,487)
Total fair market value of Future Contracts		($44,593)

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 September 30, 2013.

	Assets/(Liabilities)		Cash Collateral Posted		Net Asset/(Liability)
Interest rate swaps	$	13,626	$	-	$	13,626
Forward purchase commitments		6,904		1,578		8,482
Interest rate swaps	$	(147,954)	$	147,324	$	(630)
Futures Contracts		(44,593)		92,951		48,358

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/(Liabilities)		Cash Collateral Posted		Net Asset/(Liability)
Forward purchase commitments	$	5,452	$	-	$	5,452
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.

				Amount of gain (loss) reclassified			Amount of gain (loss) reclassified
	Amount of gain (loss)			from OCI into net income as			from OCI into net income as
	recognized in OCI			interest expense			interest expense
	(effective portion)			(effective portion)			(ineffective portion)
Derivative type for cash flow hedge		Interest Rate			Interest Rate			Interest Rate
For the three months ended September 30, 2013
Interest rate swaps		(36,356	)		(30,954	)		109
For the three months ended September 30, 2012
Interest rate swaps		(51,833	)		(29,679	)		17
For the nine months ended September 30, 2013
Interest rate swaps		15,030			(91,470	)		205
For the nine months ended September 30, 2012
Interest rate swaps		(139,474	)		(85,842	)		(321	)

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 nine months ended September 30, 2013 and the year ended December 31, 2012, respectively.

	September 30, 2013		December 31, 2012
Beginning balance		($243,051)		($218,451)
Unrealized gain (loss) on interest rate swaps		15,030		(141,392)
Reclassification of net losses included in income statement		91,470		116,792
Ending balance		($136,551)		($243,051)