Hedge Accounting

9 Months Ended

Sep. 30, 2023

Note 18 – Hedge Accounting

As of September 30, 2023, our Company held interest rate derivatives in the total nominal amount of $8.0 million. As of 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
	September 30,			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	$	17	Derivative financial instruments - current portion	$	907
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	17		$	907
Total derivatives		$	17		$	907

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, 2023 and September 30, 2022, 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
			2023		2022		2023		2022
Interest rate contracts	Interest expense	$	(26)	$	(252)	$	(812)	$	(204)
Total		$	(26)	$	(252)	$	(812)	$	(204)


	Loss (Gain) Recognized in OCI on Derivatives (Effective Portion)
(Dollars in thousands)	Amount				Amount
	Quarter Ended September 30				Nine Months Ended September 30
		2023		2022		2023		2022
Interest rate contracts	$	—	$	(312)	$	2	$	(1,457)
Total	$	—	$	(312)	$	2	$	(1,457)

	Loss (Gain) Reclassified from OCI into Income (Effective Portion)
Line Item	Amount				Amount
	Quarter Ended September 30				Nine Months Ended September 30
		2023		2022		2023		2022
Interest expense	$	(26)	$	(252)	$	(812)	$	(204)
Total	$	(26)	$	(252)	$	(812)	$	(204)

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