Note G - Derivative Instruments

3 Months Ended

Mar. 31, 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):

				March 31, 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		665		50,000		237
March 31, 2026		3.836	%		50,000		700		50,000		189
June 30, 2026		4.257	%		50,000		116		50,000		(525	)
June 30, 2026		4.185	%		50,000		242		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 $2.3 million for the three month period ended March 31, 2024 compared to a pre-tax loss of $0.9 million for the corresponding period in 2023. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses.