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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 
Information about our derivative financial instruments at September 30, 2017 and December 31, 2016 is as follows (dollars in thousands):
 
 
 
September 30, 2017
 
December 31, 2016
 
 
Number of
Instruments
 
Notional
Amount
 
Fair Value
 
Number of
Instruments
 
Notional
Amount
 
Fair Value
Interest rate swaps (liability)
 
1

 
$
75,000

 
$
(438
)
 
1

 
$
75,000

 
$
(1,118
)
 
 
1

 
$
75,000

 
$
(438
)
 
1

 
$
75,000

 
$
(1,118
)

 
Our interest rate swap has been designated as a cash flow hedge and is valued using a market approach, which is a Level 2 valuation technique. At September 30, 2017 and December 31, 2016, our interest rate swap was in a liability position. The interest rate swap expires on October 1, 2018. We are not required to post any collateral related to this agreement and are not in breach of any financial provisions of the agreement.
 
The table below details the presentation in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands):
 
 
 
For the Three Months Ended
September 30,
 
 For the Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Gain (loss) recognized in accumulated other comprehensive income on derivative financial instruments (effective portion)
 
$
2

 
$
248

 
$
92

 
$
(1,008
)
Loss reclassified from accumulated other comprehensive income to interest expense (effective portion)
 
$
(155
)
 
$
(297
)
 
$
(588
)
 
$
(906
)
Gain recognized in Other Expense (ineffective portion)
 
$
—

 
$
19

 
$
—

 
$
—


 
Amounts reported in accumulated other comprehensive income related to derivative financial instruments will be reclassified to interest expense as interest payments are made on the hedged variable-rate debt. In the next twelve months, we estimate that an additional $0.4 million will be reclassified from Other Comprehensive Income and recorded as an increase to interest expense.