Note G - Derivative Instruments

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE G—DERIVATIVE INSTRUMENTS

The Company maintains derivative instruments for protection from fluctuating interest rates. The table below provides information about the Company’s interest rate swaps (in thousands):

				June 30, 2024				December 31, 2023
	Stated					Market				Market
	Interest			Notional		Value		Notional		Value
Expiration Date	Rate			Amount		(Liability)		Amount		(Liability)
March 31, 2026		3.793	%		50,000		697		50,000		237
March 31, 2026		3.836	%		50,000		723		50,000		189
June 30, 2026		4.257	%		50,000		224		50,000		(525	)
June 30, 2026		4.185	%		50,000		294		50,000		(430	)

The outstanding interest rate swaps are not designated as hedges for accounting purposes. The effects of future fluctuations in SOFR interest rates on derivatives held by the Company will result in the recording of unrealized gains and losses into the statement of operations. The Company recorded pre-tax gains on derivatives of $0.2 million and $2.5 million for the three- and six-month periods ended June 30, 2024, respectively, compared to $2.1 million and $1.1 million for the corresponding periods in 2023. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses.