Hedge Accounting

3 Months Ended

Mar. 31, 2022

Note 18 – Hedge Accounting

As of March 31, 2022, and December 31, 2021, our Company held interest rate derivatives in the total notional amount of $63.0 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:


	Asset Derivatives
	March 31,			December 31,
	2022			2021
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	793	Derivative financial instruments - current portion	$	96
	Derivative financial instruments - non-current portion		109	Derivative financial instruments - non-current portion		112
Total derivatives designated as hedging instruments		$	902		$	208
Total derivatives		$	902		$	208

	Liability Derivatives
	March 31,			December 31,
	2022			2021
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	85	Derivative financial instruments - current portion	$	181
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	85		$	181
Total derivatives		$	85		$	181

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 March 31, 2022 and March 31, 2021, 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
			2022		2021
Interest rate contracts	Interest expense	$	69	$	60
Total		$	69	$	60


	Loss Recognized in OCI on Derivatives (Effective Portion)
(Dollars in thousands)	Amount
	Three Months Ended March 31
		2022		2021
Interest rate contracts	$	(731)	$	(1)
Total	$	(731)	$	(1)

	Loss Reclassified from OCI into Income (Effective Portion)
Line Item	Amount
	Three Months Ended March 31
		2022		2021
Interest expense	$	69	$	60
Total	$	69	$	60

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