DERIVATIVES AND HEDGING ACTIVITY (Tables)

3 Months Ended

Mar. 31, 2023

DERIVATIVES AND HEDGING ACTIVITY

Schedule of outstanding interest rate derivatives

As of March 31, 2023, 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	6	$	369,880

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 March 31, 2023 and December 31, 2022 (dollars in thousands):

	Asset Derivatives				Liability Derivatives
	(included in Other assets)				(included in Other liabilities)
	Fair Value at:				Fair Value at:
	March 31,		December 31,		March 31,		December 31,
	2023		2022		2023		2022
Derivatives designated as hedging instruments:
Interest rate products	$	13,257	$	15,270	$	—	$	—

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 months ended March 31, 2023 and 2022 (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	2023		2022		2023		2022		2023		2022
Three Months Ended March 31,
Interest rate products	$	(273)	$	7,193	$	1,369	$	(387)	$	—	$	—

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

	Three Months Ended
	March 31,
	2023		2022
Total amount of Interest expense presented on the Consolidated Statements of Operations	$	43,742	$	35,916

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 March 31, 2023 and December 31, 2022 (dollars in thousands):

			Gross		Net Amounts of		Gross Amounts Not Offset
			Amounts		Assets		in the Consolidated
	Gross		Offset in the		Presented in the		Balance Sheets
	Amounts of		Consolidated		Consolidated				Cash
	Recognized		Balance		Balance Sheets		Financial		Collateral
Offsetting of Derivative Assets	Assets		Sheets		(a)		Instruments		Received		Net Amount
March 31, 2023	$	13,257	$	—	$	13,257	$	—	$	—	$	13,257
December 31, 2022	$	15,270	$	—	$	15,270	$	—	$	—	$	15,270

(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 Sheets

Amounts of

Consolidated

Consolidated

Cash

Recognized

Balance

Balance Sheets

Financial

Collateral

Offsetting of Derivative Liabilities

Liabilities

Sheets

(a)

Instruments

Posted

Net Amount

March 31, 2023

$

—

$

—

$

—

$

—

$

—

$

—

December 31, 2022

$

—

$

—

$

—

$

—

$

—

$

—

(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.