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Interest Rate Swap Agreements
 3 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate Swap Agreements
6. Interest Rate Swap Agreements

The Company utilizes interest rate swap agreements to manage exposure to variability in expected cash flows attributable to interest rate risk. The interest rate swap agreements convert a portion of the floating rate debt to a fixed rate, more closely matching the interest rate characteristics of finance receivables.

As of the three months ended June 30, 2015 and 2014 no new contracts were initiated and no contracts matured.

The Company currently has two interest rate swap agreements. A June 4, 2012 interest rate swap agreement provides for a five-year interest rate swap in which the Company pays a fixed rate of 1% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of June 13, 2012 and a notional amount of $25,000,000. A July 30, 2012 agreement provides for a five-year interest rate swap in which the Company pays a fixed rate of 0.87% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of August 13, 2012 and a notional amount of $25,000,000.

 

The locations and amounts of (gains) losses in income are as follows:

 

     Three months ended
June 30,		  
     2015      2014  

Periodic change in fair value of interest rate swap agreements

    $ 43,562       $ 212,287   

Periodic settlement differentials included in interest expense

      94,953         98,992   
  

 

 

     

 

 

  

Loss recognized in income

    $ 138,515       $ 311,279   
  

 

 

     

 

 

  

Net realized gains and losses from the interest rate swap agreements were recorded in the interest expense line item of the consolidated statements of income. The following table summarizes the average variable rates received and average fixed rates paid under the swap agreements.

 

     Three months ended
June 30,		  
     2015     2014  

Variable rate received

      0.18 %      0.15 % 

Fixed rate paid

      0.94 %      0.94 %