v3.8.0.1

Interest Rate Swaps | 12 Months Ended
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Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Interest Rate Swaps | 11. Interest Rate Swaps Interest rate swaps were entered into with certain financial institutions in order to mitigate the impact of interest rate variability over the term of the related debt agreements. The interest rate swaps are considered cash flow hedges. In order to reduce counterparty concentration risk, the Company has a diversification policy for institutions that serve as swap counterparties. Under these agreements, the Company receives monthly payments from the counterparties on these interest rate swaps equal to the related variable interest rates multiplied by the outstanding notional amounts. Certain interest rate swaps amortize on a monthly basis. In turn, the Company pays the counterparties each month an amount equal to a fixed rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that the Company pays a fixed interest rate on its variable-rate borrowings. The following is a summary of the Company’s outstanding interest rate swap agreements:
|  |  |  |  |  |  |  |  |  |  |  |  |  | Fair Value |  |
(in thousands, except interest rates) |  |  |  |  |  |  |  |  |  |  |  | December 31, |  |
Counterparty |  | Maturity Date |  | Fixed Rate |  |  | Variable Rate Index |  | Notional Amount |  |  | 2017 |  |  | 2016 |  |
Bank of America, N.A. |  | November 2023 |  |  | 2.80 | % |  | LIBOR 1 month |  | $ | 25,000 |  |  | $ | (863 | ) |  | $ | (1,338 | ) |
Bank of Montreal |  | July 2024 |  |  | 1.16 | % |  | LIBOR 1 month |  |  | 40,000 |  |  |  | 2,503 |  |  |  | 2,485 |  |
Bank of Montreal |  | January 2025 |  |  | 1.91 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 464 |  |  |  | 299 |  |
Bank of Montreal |  | July 2025 |  |  | 2.32 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (194 | ) |  |  | (433 | ) |
Bank of Montreal |  | January 2026 |  |  | 1.92 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 561 |  |  |  | 437 |  |
Bank of Montreal |  | January 2026 |  |  | 2.05 | % |  | LIBOR 1 month |  |  | 40,000 |  |  |  | 520 |  |  |  | 275 |  |
Bank of Montreal |  | December 2026 |  |  | 2.33 | % |  | LIBOR 1 month |  |  | 10,000 |  |  |  | (63 | ) |  |  | (132 | ) |
Bank of Montreal |  | December 2027 |  |  | 2.37 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (192 | ) |  |  | — |  |
Capital One, N.A. |  | December 2021 |  |  | 1.05 | % |  | LIBOR 1 month |  |  | 15,000 |  |  |  | 607 |  |  |  | 552 |  |
Capital One, N.A. |  | December 2024 |  |  | 1.58 | % |  | LIBOR 1 month |  |  | 15,000 |  |  |  | 603 |  |  |  | 565 |  |
Capital One, N.A. |  | January 2026 |  |  | 2.08 | % |  | LIBOR 1 month |  |  | 35,000 |  |  |  | 399 |  |  |  | 216 |  |
Capital One, N.A. |  | July 2026 |  |  | 1.32 | % |  | LIBOR 1 month |  |  | 35,000 |  |  |  | 2,565 |  |  |  | 2,667 |  |
Capital One, N.A. |  | December 2027 |  |  | 2.37 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (189 | ) |  |  | — |  |
M&T Bank |  | September 2017 |  |  | 1.09 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | — |  |  |  | (37 | ) |
M&T Bank |  | April 2020 |  |  | 4.91 | % |  | LIBOR 1 month |  |  | 21,335 |  |  |  | — |  |  |  | (2,266 | ) |
M&T Bank |  | August 2021 |  |  | 1.02 | % |  | LIBOR 1 month |  |  | 5,183 |  |  |  | 182 |  |  |  | — |  | (a)
M&T Bank |  | September 2022 |  |  | 2.83 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (810 | ) |  |  | (993 | ) |
M&T Bank |  | November 2023 |  |  | 2.65 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (686 | ) |  |  | (1,102 | ) |
Regions Bank |  | March 2017 |  |  | 0.70 | % |  | LIBOR 1 month |  |  | 50,000 |  |  |  | — |  |  |  | 6 |  |
Regions Bank |  | March 2018 |  |  | 1.77 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (9 | ) |  |  | (179 | ) |
Regions Bank |  | March 2019 |  |  | 1.91 | % |  | LIBOR 3 month |  |  | 25,000 |  |  |  | 2 |  |  |  | (239 | ) |
Regions Bank |  | May 2020 |  |  | 2.12 | % |  | LIBOR 1 month |  |  | 50,000 |  |  |  | (153 | ) |  |  | (940 | ) |
Regions Bank |  | March 2022 |  |  | 2.43 | % |  | LIBOR 3 month |  |  | 25,000 |  |  |  | (254 | ) |  |  | (594 | ) |
Regions Bank |  | December 2023 |  |  | 1.18 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 1,402 |  |  |  | 1,392 |  |
SunTrust Bank |  | April 2024 |  |  | 1.99 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 261 |  |  |  | 47 |  |
SunTrust Bank |  | April 2025 |  |  | 2.20 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | — |  |  |  | (219 | ) |
SunTrust Bank |  | July 2025 |  |  | 1.99 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 386 |  |  |  | 228 |  |
SunTrust Bank |  | December 2025 |  |  | 2.30 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | (138 | ) |  |  | — |  |
SunTrust Bank |  | January 2026 |  |  | 1.93 | % |  | LIBOR 1 month |  |  | 25,000 |  |  |  | 553 |  |  |  | 429 |  |
Wells Fargo Bank, N.A. |  | February 2021 |  |  | 2.39 | % |  | LIBOR 1 month |  |  | 35,000 |  |  |  | (369 | ) |  |  | (1,013 | ) |
Wells Fargo Bank, N.A. |  | October 2024 |  |  | 2.72 | % |  | LIBOR 1 month |  |  | 15,000 |  |  |  | (510 | ) |  |  | (732 | ) |
Wells Fargo Bank, N.A. |  | January 2028 |  |  | 2.37 | % |  | LIBOR 1 month |  |  | 75,000 |  |  |  | (590 | ) |  |  | — |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,988 |  |  | $ | (619 | ) |
(a) | Interest rate swap was assumed in October 2017 as part of an UPREIT transaction.
The total loss recognized, and the location of the loss in the accompanying Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements is as follows for the years ended December 31, 2017, 2016, and 2015:
|  | 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 |  | $ | 5,099 |  |  | Interest expense |  | $ | 332 |
2016 |  | Interest expense |  |  | 9,322 |  |  | Interest expense |  |  | — |
2015 |  | Interest expense |  |  | 7,162 |  |  | Interest expense |  |  | — |
Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive income to Interest expense during 2018 are estimated to be $2,401. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes this risk exposure by limiting counterparties to major banks who meet established credit and capital guidelines. The fair value of the interest rate swaps at December 31, 2017 and 2016 are based on a valuation of the discounted future payments as provided by the counterparties, as disclosed in Note 2.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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