DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies.

During the three and six months ended June 30, 2020, changes in fair value on interest rate swaps and caps on loans and foreign exchange contracts were $(107) thousand and $(288) thousand, respectively, compared to $(9.7) million and $(9.8) million for the three and six months ended June 30, 2019, respectively, and were included in other income on the consolidated statements of operations.

The following table presents the notional amount and fair value of derivative instruments included in the consolidated statements of financial condition as of the dates indicated.

	June 30, 2020				December 31, 2019
($ in thousands)	Notional Amount		Fair Value(1)		Notional Amount		Fair Value(1)
Derivative assets:
Interest rate swaps and caps on loans	$	69,266	$	8,598	$	70,674	$	3,445
Foreign exchange contracts	3,657		137		4,643		138
Total	$	72,923	$	8,735	$	75,317	$	3,583
Derivative liabilities:
Interest rate swaps and caps on loans	$	69,266	$	9,239	$	70,674	3,717
Foreign exchange contracts	3,657		54		4,643		136
Total	$	72,923	$	9,293	$	75,317	$	3,853

(1)The fair value of interest rate swaps and caps on loans are included in other assets and accrued expenses and other liabilities, respectively, in the accompanying consolidated statements of financial condition.

We have entered into agreements with counterparty financial institutions, which include master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. We elect, however, to account for all derivatives with counterparty institutions on a gross basis.