DERIVATIVES AND HEDGING ACTIVITY (Tables)

9 Months Ended

Sep. 30, 2020

DERIVATIVES AND HEDGING ACTIVITY

Schedule of outstanding interest rate derivatives

As of September 30, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

	Number of
Product	Instruments	Notional
Interest rate swaps and caps	2	$	334,880

Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheets

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (dollars in thousands):

	Asset Derivatives				Liability Derivatives
	(included in Other assets)				(included in Other liabilities)
	Fair Value at:				Fair Value at:
	September 30,		December 31,		September 30,		December 31,
	2020		2019		2020		2019
Derivatives designated as hedging instruments:
Interest rate products	$	2	$	6	$	1,236	$	142

Effect of Company's derivative financial instruments on Consolidated Statements of Operations

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (dollars in thousands):

									Gain/(Loss) Recognized in
					Gain/(Loss) Reclassified				Interest expense
	Unrealized holding gain/(loss)				from Accumulated OCI into				(Amount Excluded from
	Recognized in OCI				Interest expense				Effectiveness Testing)
Derivatives in Cash Flow Hedging Relationships	2020		2019		2020		2019		2020		2019
Three Months Ended September 30,
Interest rate products	$	(30)	$	(659)	$	(1,585)	$	624	$	—	$	—
Nine Months Ended September 30,
Interest rate products	$	(3,241)	$	(7,181)	$	(3,234)	$	2,504	$	—	$	—

Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Total amount of Interest expense presented on the Consolidated Statements of Operations	$	62,268	$	42,523	$	140,182	$	110,482

Offsetting of Derivative Assets

The Company has elected not to offset derivative positions on the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of September 30, 2020 and December 31, 2019 (dollars in thousands):

			Gross		Net Amounts of		Gross Amounts Not Offset
			Amounts		Assets		in the Consolidated
	Gross		Offset in the		Presented in the		Balance Sheet
	Amounts of		Consolidated		Consolidated				Cash
	Recognized		Balance		Balance Sheets		Financial		Collateral
Offsetting of Derivative Assets	Assets		Sheets		(a)		Instruments		Received		Net Amount
September 30, 2020	$	2	$	—	$	2	$	—	$	—	$	2
December 31, 2019	$	6	$	—	$	6	$	(3)	$	—	$	3

(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.

Offsetting of Derivative Liabilities

			Gross		Net Amounts of		Gross Amounts Not Offset
			Amounts		Liabilities		in the Consolidated
	Gross		Offset in the		Presented in the		Balance Sheet
	Amounts of		Consolidated		Consolidated				Cash
	Recognized		Balance		Balance Sheets		Financial		Collateral
Offsetting of Derivative Liabilities	Liabilities		Sheets		(a)		Instruments		Posted		Net Amount
September 30, 2020	$	1,236	$	—	$	1,236	$	—	$	—	$	1,236
December 31, 2019	$	142	$	—	$	142	$	(3)	$	—	$	139

(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.