6. Interest Rate Swap Agreements

The Company previously utilized interest rate swap agreements to manage exposure to variability in expected cash flows attributable to interest rate risk. The interest rate swap agreements converted a portion of the Company’s floating rate debt to a fixed rate, more closely matching the interest rate characteristics of the finance receivables. During the twelve months ended March 31, 2018, no new contracts were initiated and both interest rate swap contracts matured.

The two interest rate swap agreements which expired were as follows: A June 4, 2012 interest rate swap agreement providing for a five-year term in which the Company paid a fixed rate of 1% and received payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of June 13, 2012 and a notional amount of $25.0 million. A July 30, 2012 agreement provided for a five-year term in which the Company paid a fixed rate of 0.87% and received payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of August 13, 2012 and a notional amount of $25.0 million

The locations and amounts of gains recognized in income are detailed as follows for the fiscal years ended March 31:


	(In thousands)
	2018		2017
Periodic change in fair value of interest rate swap agreements	$	17	$	222
Periodic settlement differentials included in interest expense	$	18		(179	)

Gain recognized in income	$	35	$	43

Net realized gains from the interest rate swap agreements were recorded in the interest expense line item of the consolidated statements of income.

The following table summarizes the average variable rates received and average fixed rates paid under the interest rate swap agreements for the period ended March 31:


	2018			2017
Average variable rate received		1.05	%		0.58	%
Average fixed rate paid		0.91	%		0.94	%