NOTE 17 – HEDGE ACCOUNTING

As of December 31, 2019 and 2018, 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,
	2019			2018
(Dollars in thousands)	Balance sheet location	Fair value		Balance sheet location	Fair value
Interest rate contracts	Derivative financial instruments - current portion	$	109	Derivative financial instruments - current portion	$	41
	Derivative financial instruments - non-current portion		233	Derivative financial instruments - non-current portion		145
Total derivatives designated as hedging instruments		$	342		$	186
Total derivatives		$	342		$	186

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 2019 and 2018, 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
			2019		2018
Interest rate contracts	Interest expense, net		68		14
Total		$	68	$	14


	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
	2019		2018			2019		2018			2019		2018
Interest rate contracts	$	182	$	200	Interest expense, net	$	68	$	14	Interest expense, net	$	—	$	—
Total	$	182	$	200		$	68	$	14		$	—	$	—

In 2020, the Company expects to release $120,000 to earnings.