INTEREST RATE SWAP

3 Months Ended

Mar. 31, 2017

INTEREST RATE SWAP

INTEREST RATE SWAP

NOTE 13 – INTEREST RATE SWAP

The Company uses interest rate swaps to manage risks related to interest rate movements. These interest rate swaps are reported at fair value on the consolidated balance sheets in Accrued Expenses and Other Liabilities.

The Company had an interest rate swap agreement which qualified for hedge accounting and accordingly was designated as a cash flow hedge. For this interest rate swap, the change in fair value on the effective portion of the hedge was recognized as a component of other comprehensive income. In conjunction with the Business Combination discussed in Note 2, this interest rate swap was terminated. At December 31, 2016, the fair value of this interest rate swap was a liability of $51,871.

The terms of the interest rate swap designated as a cash flow hedge at December 31, 2016 are as follows:

	Notional		Termination	Interest Rate		Interest Rate
Effective Date	Amount		Date	Received		Paid
11/12/2013	$	12,000,000	4/30/2018	0.6	%	3.63	%