Hedge Accounting

3 Months Ended

Mar. 31, 2021

Note 18 – Hedge Accounting

As of March 31, 2021, and December 31, 2020, our Company held interest rate derivatives in the total notional amount of $8.0 million and $8.0 million, respectively.

The derivatives are recorded on the balance sheet at fair value and are included in the following line items:


	Liability Derivatives
	March 31,			December 31,
	2021			2020
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	218	Derivative financial instruments - current portion	$	218
	Derivative financial instruments - non-current portion		152	Derivative financial instruments - non-current portion		212
Total derivatives designated as hedging instruments		$	370		$	430
Total derivatives		$	370		$	430

We have no derivatives designated as hedging instruments which are in asset positions.

The changes in fair value are recorded in Other Comprehensive Income and released into interest expense in the same period(s) in which the hedged transactions affect earnings. In the quarter ended to March 31, 2021 and March 31, 2020, respectively, the derivative instruments affected Comprehensive Income as follows:


(Dollars in thousands)	Location of Loss Recognized in Income on Derivatives	Amount of Loss Recognized in Income on Derivatives
		Three Months Ended March 31
			2021		2020
Interest rate contracts	Interest expense	$	60	$	29
Total		$	60	$	29


	Loss Recognized in OCI on Derivatives (Effective Portion)
(Dollars in thousands)	Amount
	Three Months Ended March 31
		2021		2020
Interest rate contracts	$	(1)	$	243
Total	$	(1)	$	243

	Loss Reclassified from OCI into Income (Effective Portion)
Line Item	Amount
	Three Months Ended March 31
		2021		2020
Interest expense	$	60	$	29
Total	$	60	$	29

The derivative has no ineffective portion, and consequently no losses have been recognized directly in income.