Derivatives and Hedging Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Instruments

The following table summarizes the fair value of derivative instruments as recorded in the Company’s condensed consolidated statements of financial condition (in thousands):

June 30, 2025

December 31, 2024

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest rate cap contracts

Other assets

503

Other assets

252

Interest rate swap agreements

Other liabilities

(22,659)

Other liabilities

(18,360)

Schedule of Derivative Instruments

The following tables summarize the terms of the derivative instruments designated as hedging instruments as recorded in the Company’s condensed consolidated statements of financial condition:

June 30, 2025

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2024 Cap

September 2024

September 2026

Cash flow hedge

$350.1 million

SONIA

2025 Cap

September 2026

January 2028

Cash flow hedge

$350.1 million

SONIA

Interest rate swap agreements

2023 Euro IR Swap

October 2023

January 2028

Cash flow hedge

$117.8 million

3-month EURIBOR

2024 Euro IR Swaps

June 2024

January 2028

Cash flow hedge

$488.9 million

3-month EURIBOR

2023 SOFR IR Swaps

November 2023

October 2026

Cash flow hedge

$150.0 million

1-month SOFR CME Term

2025 SOFR IR Swaps - U.S.Facility

January 2025

October 2027

Cash flow hedge

$125.0 million

1-month SOFR CME Term

2025 SOFR IR Swaps - Global Senior Facility

April 2025

April 2027

Cash flow hedge

$150.0 million

1-month SOFR CME Term

December 31, 2024

Effective date

Maturity Date

Hedge Designation

Notional Amount

Receive Floating Rate Index

Interest rate cap contracts

2024 Cap

September 2024

September 2026

Cash flow hedge

$319.1 million

SONIA

Interest rate swap agreements

2023 Euro IR Swap

October 2023

January 2028

Cash flow hedge

$103.5 million

3-month EURIBOR

2024 Euro IR Swaps

June 2024

January 2028

Cash flow hedge

$429.6 million

3-month EURIBOR

2023 SOFR IR Swaps

November 2023

October 2026

Cash flow hedge

$150.0 million

1-month SOFR CME Term

Schedule of Effects of Derivatives in Cash Flow Hedging Relationships

The following tables summarize the effects of derivatives designated as hedging instruments in the Company’s condensed consolidated financial statements (in thousands):


Derivatives Designated as Hedging Instruments	(Loss) Gain Recognized in OCI				Location of Gain (Loss) Reclassified from OCI into Income (Loss)	(Loss) Gain Reclassified from OCI into Income
	Three Months Ended June 30,					Three Months Ended June 30,
	2025		2024			2025		2024


Interest rate swap agreements	$	(4,609)	$	6,199	Interest expense	$	(1,043)	$	655
Interest rate cap contracts	(623)		(5,777)		Interest expense	(414)		(664)
Cross-currency swap agreements	—		(4,289)		Interest expense	—		(1,757)
					Other expense	—		(1,370)


Derivatives Designated as Hedging Instruments	(Loss) Gain Recognized in OCI				Location of Gain (Loss) Reclassified from OCI into Income (Loss)	(Loss) Gain Reclassified from OCI into Income
	Six Months Ended June 30,					Six Months Ended June 30,
	2025		2024			2025		2024


Interest rate swap agreements	$	(5,809)	$	17,273	Interest expense	$	(1,510)	$	1,195
Interest rate cap contracts	(1,319)		(11,828)		Interest expense	(778)		(1,376)
Cross-currency swap agreements	—		(17,299)		Interest expense	—		(3,537)
					Other expense	—		(12,880)

Schedule of Derivatives Not Designated as Hedging Instruments

The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s condensed consolidated statements of income during the periods presented (in thousands):


Derivatives Not Designated as Hedging Instruments	Location of Gain Recognized in Income on Derivative	Amount of Gain Recognized in Income
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Interest rate cap contract	Other income	$	—	$	79	$	—	$	274
Foreign currency exchange contract	Other income	—		873		—		873

ENCORE CAPITAL GROUP INC 10-Q