Hedge Accounting

12 Months Ended

Dec. 31, 2020

NOTE 18 – HEDGE ACCOUNTING

As of December 31, 2020 and 2019, the Company held interest rate derivatives in the total notional amount of $8.0 million and $8.0, respectively.

The derivatives are recorded on the balance sheet at fair value and are included in the following line items:


	Liability Derivatives
	December 31,
	2020			2019
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	218	Derivative financial instruments - current portion	$	109
	Derivative financial instruments - non-current portion		212	Derivative financial instruments - non-current portion		233
Total derivatives designated as hedging instruments		$	430		$	342
Total derivatives		$	430		$	342

We have no derivatives designated as hedging instruments which are in asset positions.

The changes in fair value are recorded in Other Comprehensive Income and released into interest expense in the same period(s) in which the hedged transactions affect earnings. In 2020 and 2019, the derivative instruments affected Comprehensive Income as follows:


(Dollars in thousands)	Location of Loss Recognized in Income on Derivatives	Amount of Loss Recognized in Income on Derivatives
			2020		2019
Interest rate contracts	Interest expense, net	$	202	$	68
Total		$	202	$	68


	Loss Recognized in OCI on Derivatives (Effective Portion)				Loss Reclassified from OCI into Income (Effective Portion)					Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(Dollars in thousands)	Amount				Line Item	Amount				Line Item	Amount
	2020		2019			2020		2019			2020		2019
Interest rate contracts	$	267	$	182	Interest expense, net	$	202	$	68	Interest expense, net	$	—	$	—
Total	$	267	$	182		$	202	$	68		$	—	$	—

In 2021, the Company expects to release $241,000 to earnings.