Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments and Hedging Activities (Tables)

v3.23.3
Derivative Financial Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The tables below present the location and gross fair value amounts of the Company's derivative financial instruments and the associated notional amounts designated as cash flow hedges as of the applicable balance sheet date (in thousands):
 
September 30, 2023
  Balance Sheet Location Notional Fair Value Derivative Assets
Derivatives designated as hedges:
Cash flow hedges
Interest rate swaps Derivative financial instruments $ 20,000 $ 2,165

 
December 31, 2022
  Balance Sheet Location Notional Fair Value Derivative Assets
Derivatives designated as hedges:
Cash flow hedges
Interest rate swaps Derivative financial instruments $ 20,000 $ 1,965
Schedule of Derivative Instruments, Effect on AOCI
The table below presents the effect of our derivative financial instruments designated as hedging instruments in accumulated other comprehensive income (“AOCI”) (in thousands):

  Three Months Ended September 30,
2023 2022
Gain on cash flow hedges - interest rate swaps    
Beginning balance $ 1,442 $ 1,140
Unrealized gain recognized in AOCI 434 679
Amounts reclassified to interest expense (a) (180) (74)
Tax provision (62) (146)
Ending balance $ 1,634 $ 1,599
(a) Negative amounts represent interest income. Interest expense as presented in the condensed consolidated statement of operations and comprehensive income for the three months ended September 30, 2023 and 2022 was $0.6 million and $0.4 million, respectively.
  Nine Months Ended September 30,
2023 2022
Gain on cash flow hedges - interest rate swaps    
Beginning balance $ 1,489 $ 268
Unrealized gain recognized in AOCI 754 1,802
Amounts reclassified to interest expense (a) (b) (554) (48)
Tax provision (55) (423)
Ending balance $ 1,634 $ 1,599
(a) Negative amounts represent interest income and positive amounts represent interest expense. Interest expense as presented in the condensed consolidated statement of operations and comprehensive income for the nine months ended September 30, 2023 and 2022 was $1.7 million and $1.0 million, respectively.
(b) As of September 30, 2023, $0.7 million of income is expected to be reclassified into earnings within the next 12 months.