Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The following table summarizes the terms and fair values of our derivative financial instruments, as well as their classifications within the consolidated balance sheets (notional amounts and fair values in thousands):

							Fair Value
Effective Date	Maturity Date	Notional Amount		Bank Pay Rate	Company Fixed Pay Rate		September 30, 2023		December 31, 2022
Assets (Liabilities)(1):
Interest rate swaps:
July 1, 2019	February 1, 2024	$	25,000	Daily Adjusted SOFR	1.68	%	$	324	$	853
January 1, 2021	February 1, 2024	150,000		Daily Adjusted SOFR	0.53	%	2,534		6,966
January 1, 2021	February 1, 2024	100,000		Daily Adjusted SOFR	0.15	%	1,817		5,043
March 1, 2021	February 1, 2024	25,000		Daily Adjusted SOFR	0.18	%	452		1,256
February 1, 2024 (2)	February 1, 2026 - January 1, 2027	150,000		Daily Adjusted SOFR	3.60	%	3,217		—
Total							$	8,344	$	14,118

(1)    Asset balances are recorded in prepaids and other assets on the consolidated balance sheets and liabilities are recorded in other liabilities on the consolidated balance sheets.

(2)    During the first nine months of 2023, we entered into $150.0 million of forward-starting interest rate swaps with an effective date of February 1, 2024 and maturity dates ranging from February 1, 2026 to January 1, 2027.

In October 2023, we entered into an additional $50 million forward-starting interest rate swaps with an effective date of February 1, 2024 and an adjusted average SOFR rate of 4.61%. In November 2023, we entered into an additional $50 million of forward-starting interest rate swaps with an effective date of February 1, 2024 and an average adjusted SOFR rate of 4.45%. These are not reflected in the tables above or in our consolidated financial statements as of September 30, 2023. The maturity of these swaps is from August 2026 to January 2027.The derivative financial instruments are comprised of interest rate swaps, which are designated and qualify as cash flow hedges, with various counterparties. We do not use derivatives for trading or speculative purposes and currently do not have any derivatives that are not designated as hedges.

Changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in accumulated other comprehensive loss and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Interest Rate Swaps:
Amount of gain (loss) recognized in other comprehensive income (loss)	$	(1,845)	$	2,957	$	(5,644)	$	12,896