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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2023, 2022, and 2021, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. On February 16, 2023, the Company entered into a swap transaction with a notional amount of $50.0 million and a fixed rate of 4.16%. The swap agreement has an effective date of March 1, 2023 and a termination date of June 1, 2026. On March 28, 2023, the Company entered into a swap transaction with a notional amount of $100.0 million and a fixed rate of 3.67%. The swap agreement has an effective date of April 3, 2023 and a termination date of June 1, 2026. On October 19, 2023, the Company entered into two swap transactions totaling $100.0 million. The notional amounts were $50.0 million each with fixed rates of 4.71% and 4.67%. The swap agreements have effective dates of November 1, 2023 and termination dates of June 1, 2027 and December 1, 2027, respectively. On October 23, 2023, the Company entered into two swap transactions totaling $100.0 million with an aggregate fixed rate of 4.73%. The swap agreements have effective dates of November 1, 2023 and termination dates of May 31, 2026. On November 9, 2023, the Company entered into a swap transaction totaling $75.0 million with a fixed rate of 4.54%. The swap agreement has an effective date of December 1, 2023 and a termination date of May 31, 2026. As of December 31, 2023, the Company had interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the notional value and weighted average rates of the Company's derivative financial instruments as of December 31, 2023 and 2022:
| NOTIONAL VALUE AS OF | WEIGHTED AVERAGE RATE |  | NOTIONAL VALUE AS OF | WEIGHTED AVERAGE RATE
EXPIRATION | DECEMBER 31, 2023 | EXPIRATION | DECEMBER 31, 2022
January 2024 | $ | 200,000 |  | 1.21 | % | January 2023 | $ | 300,000 |  | 1.42 | %
May 2026 | 275,000 |  | 3.74 | % | January 2024 | 200,000 |  | 1.21 | %
June 2026 | 150,000 |  | 3.83 | % | May 2026 | 100,000 |  | 2.15 | %
December 2026 | 150,000 |  | 3.84 | % | December 2026 | 150,000 |  | 3.84 | %
June 2027 | 200,000 |  | 4.27 | % | June 2027 | 150,000 |  | 4.13 | %
December 2027 | 300,000 |  | 3.93 | % | December 2027 | 250,000 |  | 3.79 | %
| $ | 1,275,000 |  | 3.49 | % |  | $ | 1,150,000 |  | 2.63 | %
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2023 and 2022.
| AS OF DECEMBER 31, 2023 | AS OF DECEMBER 31, 2022
Dollars in thousands | BALANCE SHEET LOCATION | FAIR VALUE | BALANCE SHEET LOCATION | FAIR VALUE
Interest rate swaps 2019 | Other Assets | $ | 4,214 |  | Other Assets | $ | 13,603 |
Interest rate swaps 2022 |  |  | Other Assets | 909 |
Interest rate swaps 2022 | Other Liabilities | (5,067) |  | Other Liabilities | (4,269) |
Interest rate swaps 2023 | Other Assets | 411 |  |  |
Interest rate swaps 2023 | Other Liabilities | (7,357) |  |  |
Total derivatives designated as hedging instruments |  | $ | (7,799) |  |  | $ | 10,243 |
Tabular Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on Accumulated other comprehensive income (loss) as of December 31, 2023 and 2022 related to the Company's outstanding interest rate swaps.
| AMOUNT OF GAIN/(LOSS) RECOGNIZED IN AOCI ON DERIVATIVE for the year ended December 31, |  | AMOUNT OF (GAIN)/LOSS RECLASSIFIED FROM AOCI INTO INCOME for the year ended December 31,
Dollars in thousands | 2023 | 2022 | 2023 | 2022
Interest rate swaps 2017 | $ | — |  | $ | 302 |  | Interest expense | $ | — |  | $ | 118 |
Interest rate swaps 2018 | — |  | 616 |  | Interest expense | — |  | 361 |
Interest rate swaps 2019 | 1,995 |  | 12,964 |  | Interest expense | (6,964) |  | 563 |
Interest rate swaps 2022 | 4,583 |  | (3,252) |  | Interest expense | (6,289) |  | (109) |
Interest rate swaps 2023 | (5,115) |  | — |  | Interest expense | (1,829) |  | — |
Settled treasury hedges | — |  | — |  | Interest expense | 426 |  | 426 |
Settled interest rate swaps | — |  | — |  | Interest expense | 168 |  | 168 |
| $ | 1,463 |  | $ | 10,630 |  | Total interest expense | $ | (14,488) |  | $ | 1,527 |
The Company estimates that an additional $7.3 million will be reclassified from accumulated other comprehensive loss as a net decrease to interest expense over the next 12 months. Tabular Disclosure Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2023. The net amounts of derivative liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative liabilities are presented on the Company's Consolidated Balance Sheets.
Offsetting of Derivative Assets
| GROSS AMOUNTS of recognized assets | GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets | NET AMOUNTS OF ASSETS presented in the Consolidated Balance Sheets | GROSS AMOUNTS NOT OFFSET in the Consolidated Balance Sheets
FINANCIAL INSTRUMENTS | CASH COLLATERAL | NET AMOUNT
Derivatives | $ | 4,625 |  | $ | — |  | $ | 4,625 |  | $ | (4,625) |  | $ | — |  | $ | — |
Offsetting of Derivative Liabilities
| GROSS AMOUNTS of recognized liabilities | GROSS AMOUNTS OFFSET in the Consolidated Balance Sheets | NET AMOUNTS OF LIABILITIES presented in the Consolidated Balance Sheets | GROSS AMOUNTS NOT OFFSET in the Consolidated Balance Sheets
FINANCIAL INSTRUMENTS | CASH COLLATERAL | NET AMOUNT
Derivatives | $ | (12,424) |  | $ | — |  | $ | (12,424) |  | $ | 4,625 |  | $ | — |  | $ | (7,799) |
Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of December 31, 2023, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $11.0 million. As of December 31, 2023, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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