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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.