Hedge Accounting

3 Months Ended

Mar. 31, 2023

Note 18 – Hedge Accounting

As of March 31, 2023, and December 31, 2022, 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
	March 31,			December 31,
	2023			2022
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	293	Derivative financial instruments - current portion	$	907
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	293		$	907
Total derivatives		$	293		$	907

	Liability Derivatives
	March 31,			December 31,
	2023			2022
(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	$	—
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	—		$	—
Total derivatives		$	—		$	—

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, 2023 and March 31, 2022, respectively, the derivative instruments affected Comprehensive Income as follows:


(Dollars in thousands)	Location of Loss Recognized in Income on Derivatives
		Three Months Ended March 31
			2023		2022
Interest rate contracts	Interest expense	$	(564)	$	69
Total		$	(564)	$	69



(Dollars in thousands)	Amount
	Three Months Ended March 31
		2023		2022
Interest rate contracts	$	18	$	(731)
Total	$	18	$	(731)


Line Item	Amount
	Three Months Ended March 31
		2023		2022
Interest expense	$	(564)	$	69
Total	$	(564)	$	69

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