XML 56 R25.htm IDEA: XBRL DOCUMENT

Note 18: Derivative Commitments

12 Months Ended

Dec. 31, 2013

18) Derivative Commitments

The Company has adopted a strategy of selling “out of the money” call options on its available for sale equity securities as a source of revenue. The options give the purchaser the right to buy from the Company specified equity securities at a set price up to a pre-determined date in the future. The Company receives an immediate payment of cash for the value of the option and establishes a liability for the market value of the option. The liability for call options is adjusted to market value at each reporting date. The market value of outstanding call options as of December 31, 2013 and December 31, 2012 was $124,174 and $126,215, respectively. In the event an option is exercised, the Company recognizes a gain on the sale of the equity security and a gain from the sale of the option. If the option expires unexercised, the Company recognizes a gain from the sale of the option and retains the underlying equity security. Additional information on how the Company reports these derivatives is discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table shows the fair value of derivatives as of December 31, 2013 and December 31, 2012.

Fair Value of Derivative Instruments

Asset Derivatives

Liability Derivatives

December 31, 2013

December 31, 2012

December 31, 2013

December 31, 2012

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate lock and forward sales commitments

other assets

$1,511,111

other assets

$ 3,127,689

Other liabilities

$ 23,203

Other liabilities

$ 166,224

Call Options

Other liabilities

124,174

Other liabilities

126,215

Interest rate swaps

Bank loans payable

58,310

Bank loans payable

93,572

Total

$1,511,111

$ 3,127,689

$ 205,687

$ 386,011

The following table shows the gain (loss) on derivatives for the periods presented. There were no gains or losses reclassified from accumulated other comprehensive income (OCI) into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing.

	Net Amount Gain (Loss) Recognized in OCI
	Years ended December 31
Derivative - Cash Flow Hedging Relationships:	2013	2012
Interest Rate Lock Commitments	$ (1,473,557)	$ 1,266,924
Interest Rate Swaps	35,262	24,240
Sub Total	(1,438,295)	1,291,164
Tax Effect	(417,541)	438,996
Total	$ (1,020,754)	$ 852,168