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.