Derivative Financial Instruments

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The following table summarizes the terms and fair values of our derivative financial instruments, as well as their classifications within the consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in thousands):

							Fair Value
Effective Date	Maturity Date	Notional Amount		Bank Pay Rate	Company Fixed Pay Rate		March 31, 2014		December 31, 2013
Assets:
November 14, 2013	August 14, 2018	$	50,000	1 month LIBOR	1.3075	%	$	336	$	455
November 14, 2013	August 14, 2018	50,000		1 month LIBOR	1.2970	%	367		440
November 14, 2013	August 14, 2018	50,000		1 month LIBOR	1.3025	%	359		487
Total		$	150,000				$	1,062	$	1,382

The derivative financial instruments are comprised of interest rate swaps, which are designated and qualify as cash flow hedges, each with a separate counterparty. We do not use derivatives for trading or speculative purposes and currently do not have any derivatives that are not designated as hedges.

The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative, if any, is recognized directly in earnings.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements for the three months endedMarch 31, 2014 and 2013, respectively (in thousands):

						Location of Gain (Loss)	Amount of Gain (Loss)
	Amount of Gain (Loss)					Reclassification from	Reclassified from
	Recognized in OCI on					Accumulated OCI into	Accumulated OCI into
	Derivative					Income	Income
	(Effective Portion)					(Effective Portion)	(Effective Portion)
	March 31,						March 31,
	2014			2013			2014		2013
Interest Rate Swaps	$	(320	)	$	—		$	—	$	—
Treasury Rate Lock	—			—		Interest Expense	96		90

In 2005, we settled two US treasury rate lock agreements associated with a 10 year senior, unsecured bond offering and received approximately $3.2 million. The unamortized balance of the settled agreements as of March 31, 2014 and December 31, 2013 was approximately $645,000 and $741,000, respectively. As of March 31, 2014, we expect approximately $400,000 of deferred gains on derivative instruments in accumulated other comprehensive income to be reclassified into earnings during the next twelve months.