| Summary of Company's Outstanding Interest-rate Swap Agreement |
The following is a summary of the Company’s outstanding interest-rate swap agreements at June 30, 2017:
|
(in thousands, except interest rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Maturity Date |
|
Fixed Rate |
|
|
Variable Rate Index |
|
Notional Amount |
|
|
Fair Value |
|
|
Bank of America, N.A. |
|
November 2023 |
|
|
2.80% |
|
|
1 month LIBOR |
|
$ |
25,000 |
|
|
$ |
(1,234 |
) |
|
Bank of Montreal |
|
July 2024 |
|
|
1.16% |
|
|
1 month LIBOR |
|
|
40,000 |
|
|
|
2,223 |
|
|
Bank of Montreal |
|
January 2025 |
|
|
1.91% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
204 |
|
|
Bank of Montreal |
|
July 2025 |
|
|
2.32% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(493 |
) |
|
Bank of Montreal |
|
January 2026 |
|
|
1.92% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
322 |
|
|
Bank of Montreal |
|
January 2026 |
|
|
2.05% |
|
|
1 month LIBOR |
|
|
40,000 |
|
|
|
112 |
|
|
Bank of Montreal |
|
December 2026 |
|
|
2.33% |
|
|
1 month LIBOR |
|
|
10,000 |
|
|
|
(171 |
) |
|
Capital One, N.A. |
|
December 2021 |
|
|
1.05% |
|
|
1 month LIBOR |
|
|
15,000 |
|
|
|
498 |
|
|
Capital One, N.A. |
|
December 2024 |
|
|
1.58% |
|
|
1 month LIBOR |
|
|
15,000 |
|
|
|
478 |
|
|
Capital One, N.A. |
|
January 2026 |
|
|
2.08% |
|
|
1 month LIBOR |
|
|
35,000 |
|
|
|
50 |
|
|
Capital One, N.A. |
|
July 2026 |
|
|
1.32% |
|
|
1 month LIBOR |
|
|
35,000 |
|
|
|
2,365 |
|
|
M&T Bank |
|
September 2017 |
|
|
1.09% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
5 |
|
|
M&T Bank (a) |
|
September 2022 |
|
|
2.83% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(1,151 |
) |
|
M&T Bank |
|
November 2023 |
|
|
2.65% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(1,064 |
) |
|
Regions Bank |
|
March 2018 |
|
|
1.77% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(78 |
) |
|
Regions Bank |
|
March 2019 |
|
|
1.91% |
|
|
3 month LIBOR |
|
|
25,000 |
|
|
|
(159 |
) |
|
Regions Bank |
|
May 2020 |
|
|
2.12% |
|
|
1 month LIBOR |
|
|
50,000 |
|
|
|
(697 |
) |
|
Regions Bank |
|
March 2022 |
|
|
2.43% |
|
|
3 month LIBOR |
|
|
25,000 |
|
|
|
(631 |
) |
|
Regions Bank |
|
December 2023 |
|
|
1.18% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
1,227 |
|
|
SunTrust Bank |
|
April 2024 |
|
|
1.99% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(84 |
) |
|
SunTrust Bank |
|
April 2025 |
|
|
2.20% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
(359 |
) |
|
SunTrust Bank |
|
July 2025 |
|
|
1.99% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
57 |
|
|
SunTrust Bank |
|
January 2026 |
|
|
1.93% |
|
|
1 month LIBOR |
|
|
25,000 |
|
|
|
240 |
|
|
Wells Fargo Bank, N.A. |
|
February 2021 |
|
|
2.39% |
|
|
1 month LIBOR |
|
|
35,000 |
|
|
|
(847 |
) |
|
Wells Fargo Bank, N.A. |
|
October 2024 |
|
|
2.72% |
|
|
1 month LIBOR |
|
|
15,000 |
|
|
|
(723 |
) |
|
| Schedule of Fair Value of Interest Rate Swaps |
|
(a) |
The swap is a forward starting swap which becomes effective September 2017. |
The fair value of the interest rate swaps are reported on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 as follows:
|
(in thousands) |
|
June 30,
2017 |
|
|
December 31,
2016 |
|
|
Interest rate swaps, asset |
|
$ |
7,781 |
|
|
$ |
9,598 |
|
|
Interest rate swaps, liability |
|
|
(7,691 |
) |
|
|
(10,217 |
) |
|
Interest rate swap |
|
$ |
90 |
|
|
$ |
(619 |
) |
|
| Total Loss Recognized and Location of Loss in Condensed Consolidated Statement of Income and Comprehensive Income (Loss) from Converting from Variable Rates to Fixed Rates |
The total loss recognized, and the location of the loss in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Loss), from converting from variable rates to fixed rates under these agreements is as follows for the three months ended June 30, 2017 and 2016:
|
|
|
Effective Portion |
|
|
Ineffective Portion |
|
|
(in thousands) |
|
Location of Loss
Reclassified from
Accumulated Other
Comprehensive
Income into Income |
|
Amount of Loss
Reclassified from
Accumulated Other
Comprehensive
Income into Income |
|
|
Location of Loss
Recognized in Income on
Derivatives |
|
Amount of Loss
Recognized in Income on
Derivatives |
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
Interest expense |
|
$ |
802 |
|
|
Interest expense |
|
$ |
332 |
|
|
2016 |
|
Interest expense |
|
|
2,313 |
|
|
Interest expense |
|
|
1,668 |
|
The total loss recognized, and the location of the loss in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Loss), from converting from variable rates to fixed rates under these agreements is as follows for the six months ended June 30, 2017 and 2016:
|
|
|
Effective Portion |
|
|
Ineffective Portion |
|
|
(in thousands) |
|
Location of Loss
Reclassified from
Accumulated Other
Comprehensive
Income into Income |
|
Amount of Loss
Reclassified from
Accumulated Other
Comprehensive
Income into Income |
|
|
Location of Loss
Recognized in Income on
Derivatives |
|
Amount of Loss
Recognized in Income on
Derivatives |
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
Interest expense |
|
$ |
2,704 |
|
|
Interest expense |
|
$ |
332 |
|
|
2016 |
|
Interest expense |
|
|
4,604 |
|
|
Interest expense |
|
|
5,210 |
|
|