Hedge Accounting

6 Months Ended

Jun. 30, 2025

Note 19 – Hedge Accounting

As of June 30, 2025, our Company held derivative instruments to the notional value of $32.9 million (AU$50.0 million). As of December 31, 2024, our Company held derivatives in the total notional amount of $33.0 million (AU$50.0 million).

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


	Liability Derivatives
	June 30,			December 31,
	2025			2024
(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		235	Derivative financial instruments - non-current portion		137
Total derivatives designated as hedging instruments		$	235		$	137
Total derivatives		$	235		$	137

The changes in fair value of that instrument were 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 six months ended June 30, 2025 and June 30, 2024, 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 June 30				Six Months Ended June 30
			2025		2024		2025		2024
Interest rate contracts	Interest expense	$	(10)	$		$	(9)	$	—
Total		$	(10)	$	—	$	(9)	$	—


	Loss (Gain) Recognized in OCI on Derivatives (Effective Portion)
(Dollars in thousands)	Amount				Amount
	Quarter Ended June 30				Six Months Ended June 30
		2025		2024		2025		2024
Interest rate contracts	$	235	$	98	$	391	$	98
Total	$	235	$	98	$	391	$	98

	Loss (Gain) Reclassified from OCI into Income (Effective Portion)
Line Item	Amount				Amount
	Quarter Ended June 30				Six Months Ended June 30
		2025		2024		2025		2024
Interest expense	$	(10)	$	—	$	(9)	$	—
Total	$	(10)	$	—	$	(9)	$	—

As of June 30, 2025, we expect to release $321,000 to earnings over the remaining life of the derivative.