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Note 6 - Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 6: Derivative Financial Instruments

 

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of September 30, 2025 and December 31, 2024:

 

  

As of September 30, 2025

  

As of December 31, 2024

 
  

Notional

  

Fair Value of Assets

  

Fair Value of Liabilities

  

Notional

  

Fair Value of Assets

  

Fair Value of Liabilities

 

Cash flow hedges:

                        

Interest rate swaps

 $600,000  $7,821  $690  $500,000  $20,328  $— 

Interest rate collars

  200,000   4,052   —   200,000   8,972   — 

Forward interest rate swap

  150,000   —   47   —   —   — 

Total

 $950,000  $11,873  $737  $700,000  $29,300  $— 

 

Effective interest rate swaps and collars are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is recorded as derivative assets or liabilities on the face of our condensed consolidated balance sheets.

 

For our interest rate swaps and collars that are considered highly effective hedges, we reclassified realized gains of $3,484 and $10,195 to earnings within interest expense for the three and nine months ended September 30, 2025, respectively, and we expect gains of $7,431 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. For the three and nine months ended September 30, 2024, we reclassified realized gains of $5,216 and $15,645, respectively, to earnings within interest expense.

 

On March 14, 2025, we entered into an interest rate swap contract with a notional value of $100,000, a strike rate of 3.96% and a maturity date of March 17, 2026. The interest rate swap has an effective date of March 17, 2025. We designated this interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness.

 

On August 6, 2025, we entered into a forward interest rate swap contract with a notional value of $150,000, a strike rate of 3.26% and a maturity date of June 17, 2030. The interest rate swap has an effective date of June 17, 2026. We designated this interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness.