Hedge Accounting

9 Months Ended

Sep. 30, 2022

Note 18 – Hedge Accounting

As of September 30, 2022, and December 31, 2021, our Company held interest rate derivatives in the total notional amount of $51.0 million.

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


	Asset Derivatives
	September 30,			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	$	1,318	Derivative financial instruments - current portion	$	96
	Derivative financial instruments - non-current portion		21	Derivative financial instruments - non-current portion		112
Total derivatives designated as hedging instruments		$	1,339		$	208
Total derivatives		$	1,339		$	208

	Liability Derivatives
	September 30,			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	$	—	Derivative financial instruments - current portion	$	181
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	—		$	181
Total derivatives		$	—		$	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 and nine months ended September 30, 2022 and September 30, 2021, respectively, the derivative instruments affected Comprehensive Income as follows:


(Dollars in thousands)	Location of Loss Recognized in Income on Derivatives	Amount of Loss (Gain) Recognized in Income on Derivatives
		Quarter Ended September 30				Nine Months Ended September 30
			2022		2021		2022		2021
Interest rate contracts	Interest expense	$	(252)	$	61	$	(204)	$	181
Total		$	(252)	$	61	$	(204)	$	181


	Loss (Gain) Recognized in OCI on Derivatives (Effective Portion)
(Dollars in thousands)	Amount				Amount
	Quarter Ended September 30				Nine Months Ended September 30
		2022		2021		2022		2021
Interest rate contracts	$	(312)	$	4	$	(1,457)	$	9
Total	$	(312)	$	4	$	(1,457)	$	9

	Loss (Gain) Reclassified from OCI into Income (Effective Portion)
Line Item	Amount				Amount
	Quarter Ended September 30				Nine Months Ended September 30
		2022		2021		2022		2021
Interest expense	$	(252)	$	61	$	(204)	$	181
Total	$	(252)	$	61	$	(204)	$	181

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