Hedge Accounting

12 Months Ended

Dec. 31, 2023

NOTE 19 – HEDGE ACCOUNTING

As of December 31, 2023 the Company held no interest rate derivatives. As of December 31, 2022, the Company held interest rate derivatives in the total notional amount $51.0 million.

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


	Asset Derivatives
	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	$	907
	Derivative financial instruments - non-current portion		—	Derivative financial instruments - non-current portion		—
Total derivatives designated as hedging instruments		$	—		$	907
Total derivatives		$	—		$	907

	Liability Derivatives
	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 2023 and 2022, the derivative instruments affected Comprehensive Income as follows:


(Dollars in thousands)	Location of Loss Recognized in Income on Derivatives	Amount of Loss Recognized in Income on Derivatives
			2023		2022
Interest rate contracts	Interest expense, net	$	(821)	$	(672)
Total		$	(821)	$	(672)


	Loss Recognized in OCI on Derivatives (Effective Portion)				Loss Reclassified from OCI into Income (Effective Portion)					Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(Dollars in thousands)	Amount				Line Item	Amount				Line Item	Amount
	2023		2022			2023		2022			2023		2022
Interest rate contracts	$	2	$	(1,520)	Interest expense, net	$	821	$	672	Interest expense, net	$	—	$	—
Total	$	2	$	(1,520)		$	821	$	672		$	—	$	—

As of December 31, 2023, we have no derivative instruments.