v3.22.2.2

Interest Rate Swaps | 9 Months Ended
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Sep. 30, 2022
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:
(in thousands, except interest rates) |  |  |  |  |  |  | September 30, 2022 |  |  | December 31, 2021 |  |
Counterparty |  | Maturity Date |  | Fixed Rate |  |  | Variable Rate Index |  | Notional Amount |  |  | Fair Value |  |  | Notional Amount |  |  | Fair Value |  |
Wells Fargo Bank, N.A. |  | October 2024 |  |  | 2.72 | % |  | one-month LIBOR |  | $ | 15,000 |  |  | $ | 451 |  |  | $ | 15,000 |  |  | $ | (702 | ) |
Capital One, National Association |  | December 2024 |  |  | 1.58 | % |  | one-month LIBOR |  |  | 15,000 |  |  |  | 834 |  |  |  | 15,000 |  |  |  | (241 | ) |
Bank of Montreal |  | January 2025 |  |  | 1.91 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,256 |  |  |  | 25,000 |  |  |  | (649 | ) |
Truist Financial Corporation |  | April 2025 |  |  | 2.20 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,184 |  |  |  | 25,000 |  |  |  | (905 | ) |
Bank of Montreal |  | July 2025 |  |  | 2.32 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,189 |  |  |  | 25,000 |  |  |  | (1,049 | ) |
Truist Financial Corporation |  | July 2025 |  |  | 1.99 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,404 |  |  |  | 25,000 |  |  |  | (767 | ) |
Truist Financial Corporation |  | December 2025 |  |  | 2.30 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,346 |  |  |  | 25,000 |  |  |  | (1,125 | ) |
Bank of Montreal |  | January 2026 |  |  | 1.92 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,637 |  |  |  | 25,000 |  |  |  | (760 | ) |
Bank of Montreal |  | January 2026 |  |  | 2.05 | % |  | one-month LIBOR |  |  | 40,000 |  |  |  | 2,463 |  |  |  | 40,000 |  |  |  | (1,415 | ) |
Capital One, National Association |  | January 2026 |  |  | 2.08 | % |  | one-month LIBOR |  |  | 35,000 |  |  |  | 2,116 |  |  |  | 35,000 |  |  |  | (1,274 | ) |
Truist Financial Corporation |  | January 2026 |  |  | 1.93 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,631 |  |  |  | 25,000 |  |  |  | (768 | ) |
Capital One, National Association |  | April 2026 |  |  | 2.68 | % |  | one-month LIBOR |  |  | 15,000 |  |  |  | 662 |  |  |  | 15,000 |  |  |  | (941 | ) |
Capital One, National Association |  | July 2026 |  |  | 1.32 | % |  | one-month LIBOR |  |  | 35,000 |  |  |  | 3,250 |  |  |  | 35,000 |  |  |  | (205 | ) |
Bank of Montreal |  | December 2026 |  |  | 2.33 | % |  | one-month LIBOR |  |  | 10,000 |  |  |  | 633 |  |  |  | 10,000 |  |  |  | (538 | ) |
Bank of Montreal |  | December 2026 |  |  | 1.99 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,913 |  |  |  | 25,000 |  |  |  | (936 | ) |
Toronto-Dominion Bank |  | March 2027 |  |  | 2.46 | % |  | one-month CDOR |  |  | 14,607 |  | (a) |  | 744 |  |  |  | — |  |  |  | — |  |
Wells Fargo Bank, N.A. |  | April 2027 |  |  | 2.72 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,233 |  |  |  | 25,000 |  |  |  | (1,887 | ) |
Bank of Montreal |  | December 2027 |  |  | 2.37 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,774 |  |  |  | 25,000 |  |  |  | (1,570 | ) |
Capital One, National Association |  | December 2027 |  |  | 2.37 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 1,742 |  |  |  | 25,000 |  |  |  | (1,575 | ) |
Wells Fargo Bank, N.A. |  | January 2028 |  |  | 2.37 | % |  | one-month LIBOR |  |  | 75,000 |  |  |  | 5,265 |  |  |  | 75,000 |  |  |  | (4,741 | ) |
Bank of Montreal |  | May 2029 |  |  | 2.09 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 2,451 |  |  |  | 25,000 |  |  |  | (1,316 | ) |
Regions Bank |  | May 2029 |  |  | 2.11 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 2,394 |  |  |  | 25,000 |  |  |  | (1,356 | ) |
Regions Bank |  | June 2029 |  |  | 2.03 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 2,511 |  |  |  | 25,000 |  |  |  | (1,222 | ) |
U.S. Bank National Association |  | June 2029 |  |  | 2.03 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 2,536 |  |  |  | 25,000 |  |  |  | (1,220 | ) |
Regions Bank |  | August 2029 |  |  | 2.58 | % |  | one-month SOFR |  |  | 100,000 |  |  |  | 6,137 |  |  |  | — |  |  |  | — |  |
Toronto-Dominion Bank |  | August 2029 |  |  | 2.58 | % |  | one-month SOFR |  |  | 45,000 |  |  |  | 2,851 |  |  |  | — |  |  |  | — |  |
U.S. Bank National Association |  | August 2029 |  |  | 2.65 | % |  | one-month SOFR |  |  | 15,000 |  |  |  | 880 |  |  |  | — |  |  |  | — |  |
U.S. Bank National Association |  | August 2029 |  |  | 2.58 | % |  | one-month SOFR |  |  | 100,000 |  |  |  | 6,231 |  |  |  | — |  |  |  | — |  |
U.S. Bank National Association |  | August 2029 |  |  | 1.35 | % |  | one-month LIBOR |  |  | 25,000 |  |  |  | 3,605 |  |  |  | 25,000 |  |  |  | (9 | ) |
Regions Bank |  | March 2032 |  |  | 2.69 | % |  | one-month CDOR |  |  | 14,607 |  | (a) |  | 1,028 |  |  |  | — |  |  |  | — |  |
U.S. Bank National Association |  | March 2032 |  |  | 2.70 | % |  | one-month CDOR |  |  | 14,607 |  | (a) |  | 1,044 |  |  |  | — |  |  |  | — |  |
Bank of Montreal |  | March 2034 |  |  | 2.81 | % |  | one-month CDOR |  |  | 29,216 |  | (a) |  | 2,207 |  |  |  | — |  |  |  | — |  |
|  |  |  |  |  |  |  |  | $ | 973,037 |  |  | $ | 66,602 |  |  | $ | 640,000 |  |  | $ | (27,171 | ) |
(a) The contractual notional amount is $20.0 million or $40.0 million CAD. At September 30, 2022, the weighted average fixed rate on all outstanding interest rate swaps was 2.22%. The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements were as follows:
|  | Amount of Gain |  |  | Reclassification from |  |  | Total Interest Expense |
|  | Recognized in |  |  | Accumulated Other |  |  | Presented in the Condensed |
|  | Accumulated Other |  |  | Comprehensive Income (Loss) |  |  | Consolidated Statements of |
(in thousands) |  | Comprehensive |  |  |  |  | Amount of |  |  | Income and Comprehensive |
For the Three Months Ended September 30, |  | Income (Loss) |  |  | Location |  | Loss |  |  | Income |
2022 |  | $ | 40,039 |  |  | Interest expense |  | $ | 446 |  |  | $ | 20,095 |
2021 |  |  | 4,559 |  |  | Interest expense |  |  | 4,085 |  |  |  | 15,611 |
|  | Amount of Gain |  |  | Reclassification from |  |  | Total Interest Expense |
|  | Recognized in |  |  | Accumulated Other |  |  | Presented in the Condensed |
|  | Accumulated Other |  |  | Comprehensive Income (Loss) |  |  | Consolidated Statements of |
(in thousands) |  | Comprehensive |  |  |  |  | Amount of |  |  | Income and Comprehensive |
For the Nine Months Ended September 30, |  | Income (Loss) |  |  | Location |  | Loss |  |  | Income |
2022 |  | $ | 93,772 |  |  | Interest expense |  | $ | 7,433 |  |  | $ | 54,879 |
2021 |  |  | 30,328 |  |  | Interest expense |  |  | 12,140 |  |  |  | 47,149 |
Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive income (loss) to Interest expense during the next twelve months are estimated to be a gain of $17.2 million. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes the risk exposure by limiting counterparties to only major banks who meet established credit and capital guidelines.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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