Interest Rate Swaps

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swaps

11. Interest Rate Swaps

Interest rate swaps were entered into with certain financial institutions in order to mitigate the impact of interest rate variability over the term of the related debt agreements. The interest rate swaps are considered cash flow hedges. In order to reduce counterparty concentration risk, the Company has a diversification policy for institutions that serve as swap counterparties. Under these agreements, the Company receives monthly payments from the counterparties on these interest rate swaps equal to the related variable interest rates multiplied by the outstanding notional amounts. Certain interest rate swaps amortize on a monthly basis. In turn, the Company pays the counterparties each month an amount equal to a fixed rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that the Company pays a fixed interest rate on its variable-rate borrowings.

The following is a summary of the Company's outstanding interest rate swap agreements:

(in thousands, except interest rates)					June 30, 2022				December 31, 2021
Counterparty	Maturity Date	Fixed Rate			Notional Amount		Fair Value		Notional Amount		Fair Value
Wells Fargo Bank, N.A.	October 2024		2.72	%	$	15,000	$	110	$	15,000	$	(702	)
Capital One, National Association	December 2024		1.58	%		15,000		510		15,000		(241	)
Bank of Montreal	January 2025		1.91	%		25,000		672		25,000		(649	)
Truist Financial Corporation	April 2025		2.20	%		25,000		520		25,000		(905	)
Bank of Montreal	July 2025		2.32	%		25,000		459		25,000		(1,049	)
Truist Financial Corporation	July 2025		1.99	%		25,000		697		25,000		(767	)
Truist Financial Corporation	December 2025		2.30	%		25,000		517		25,000		(1,125	)
Bank of Montreal	January 2026		1.92	%		25,000		833		25,000		(760	)
Bank of Montreal	January 2026		2.05	%		40,000		1,162		40,000		(1,415	)
Capital One, National Association	January 2026		2.08	%		35,000		980		35,000		(1,274	)
Truist Financial Corporation	January 2026		1.93	%		25,000		826		25,000		(768	)
Capital One, National Association	April 2026		2.68	%		15,000		121		15,000		(941	)
Capital One, National Association	July 2026		1.32	%		35,000		2,076		35,000		(205	)
Bank of Montreal	December 2026		2.33	%		10,000		233		10,000		(538	)
Bank of Montreal	December 2026		1.99	%		25,000		941		25,000		(936	)
Toronto-Dominion Bank	March 2027		2.46	%		15,531		660		—		—
Wells Fargo Bank, N.A.	April 2027		2.72	%		25,000		170		25,000		(1,887	)
Bank of Montreal	December 2027		2.37	%		25,000		637		25,000		(1,570	)
Capital One, National Association	December 2027		2.37	%		25,000		616		25,000		(1,575	)
Wells Fargo Bank, N.A.	January 2028		2.37	%		75,000		1,864		75,000		(4,741	)
Bank of Montreal	May 2029		2.09	%		25,000		1,195		25,000		(1,316	)
Regions Bank	May 2029		2.11	%		25,000		1,143		25,000		(1,356	)
Regions Bank	June 2029		2.03	%		25,000		1,265		25,000		(1,222	)
U.S. Bank National Association	June 2029		2.03	%		25,000		1,284		25,000		(1,220	)
U.S. Bank National Association	August 2029		1.35	%		25,000		2,407		25,000		(9	)
Regions Bank	March 2032		2.69	%		15,531		1,103		—		—
U.S. Bank National Association	March 2032		2.70	%		15,531		1,126		—		—
Bank of Montreal	March 2034		2.81	%		31,064		2,435		—		—
					$	717,657	$	26,562	$	640,000	$	(27,171	)

At June 30, 2022, the weighted average fixed rate on all outstanding interest rate swaps was 2.11%.

The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements were as follows:

	Amount of Gain (Loss)			Reclassification from			Total Interest Expense
	Recognized in			Accumulated Other			Presented in the Condensed
(in thousands)	Accumulated Other			Comprehensive Income (Loss)			Consolidated Statements of
	Comprehensive				Amount of		Income and Comprehensive
For the Three Months Ended June 30,	Income (Loss)			Location	Loss		Income
2022	$	18,772		Interest expense	$	3,122	$	17,888
2021		(2,911	)	Interest expense		4,039		15,430

	Amount of Gain		Reclassification from			Total Interest Expense
	Recognized in		Accumulated Other			Presented in the Condensed
	Accumulated Other		Comprehensive Income (Loss)			Consolidated Statements of
(in thousands)	Comprehensive			Amount of		Income and Comprehensive
For the Six Months Ended June 30,	Income (Loss)		Location	Loss		Income
2022	$	53,733	Interest expense	$	6,987	$	34,784
2021		25,769	Interest expense		8,055		31,538

Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive income (loss) to Interest expense during the next twelve months are estimated to be a gain of $4.8 million. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes the risk exposure by limiting counterparties to only major banks who meet established credit and capital guidelines