| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 is summarized as follows, net of tax (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
Gains (Losses)
on AFS
Securities
|
|
Unrealized Gain
for AFS
Securities
Transferred to
HTM
|
|
Change in Fair
Value of Cash
Flow Hedge
|
|
Total |
Balance - March 31, 2016 |
$ |
10,716 |
|
|
$ |
4,140 |
|
|
$ |
(8,497 |
) |
|
$ |
6,359 |
|
Other comprehensive income (loss) |
3,698 |
|
|
(287 |
) |
|
(1,007 |
) |
|
2,404 |
|
Amounts reclassified from accumulated other comprehensive income |
(2 |
) |
|
— |
|
|
138 |
|
|
136 |
|
Net current period other comprehensive income (loss) |
3,696 |
|
|
(287 |
) |
|
(869 |
) |
|
2,540 |
|
Balance - June 30, 2016 |
$ |
14,412 |
|
|
$ |
3,853 |
|
|
$ |
(9,366 |
) |
|
$ |
8,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
Gains (Losses)
on AFS
Securities
|
|
Unrealized Gain
for AFS
Securities
Transferred to
HTM
|
|
Change in Fair
Value of Cash
Flow Hedge
|
|
Total |
Balance - December 31, 2015 |
$ |
7,777 |
|
|
$ |
4,432 |
|
|
$ |
(5,957 |
) |
|
$ |
6,252 |
|
Other comprehensive income (loss) |
6,730 |
|
|
(579 |
) |
|
(3,688 |
) |
|
2,463 |
|
Amounts reclassified from accumulated other comprehensive income |
(95 |
) |
|
— |
|
|
279 |
|
|
184 |
|
Net current period other comprehensive income (loss) |
6,635 |
|
|
(579 |
) |
|
(3,409 |
) |
|
2,647 |
|
Balance - June 30, 2016 |
$ |
14,412 |
|
|
$ |
3,853 |
|
|
$ |
(9,366 |
) |
|
$ |
8,899 |
|
The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 is summarized as follows, net of tax (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Gains
(Losses) on AFS
Securities
|
|
Unrealized Gain
for AFS
Securities
Transferred to
HTM
|
|
Change in Fair
Value of Cash
Flow Hedge
|
|
Total |
Balance - March 31, 2015 |
$ |
21,097 |
|
|
$ |
— |
|
|
$ |
(6,402 |
) |
|
$ |
14,695 |
|
Unrealized gain transferred from AFS to HTM |
(5,251 |
) |
|
5,251 |
|
|
— |
|
|
— |
|
Other comprehensive income (loss) |
(6,845 |
) |
|
(208 |
) |
|
1,809 |
|
|
(5,244 |
) |
Amounts reclassified from accumulated other comprehensive income |
(263 |
) |
|
— |
|
|
41 |
|
|
(222 |
) |
Net current period other comprehensive income (loss) |
(7,108 |
) |
|
(208 |
) |
|
1,850 |
|
|
(5,466 |
) |
Balance - June 30, 2015 |
$ |
8,738 |
|
|
$ |
5,043 |
|
|
$ |
(4,552 |
) |
|
$ |
9,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Gains
(Losses) on AFS
Securities
|
|
Unrealized Gain
for AFS
Securities
Transferred to
HTM
|
|
Change in Fair
Value of Cash
Flow Hedge
|
|
Total |
Balance - December 31, 2014 |
$ |
17,439 |
|
|
$ |
— |
|
|
$ |
(5,184 |
) |
|
$ |
12,255 |
|
Unrealized gain transferred from AFS to HTM |
(5,251 |
) |
|
5,251 |
|
|
— |
|
|
— |
|
Other comprehensive income (loss) |
(3,062 |
) |
|
(208 |
) |
|
319 |
|
|
(2,951 |
) |
Amounts reclassified from accumulated other comprehensive income |
(388 |
) |
|
— |
|
|
313 |
|
|
(75 |
) |
Net current period other comprehensive income (loss) |
(3,450 |
) |
|
(208 |
) |
|
632 |
|
|
(3,026 |
) |
Balance - June 30, 2015 |
$ |
8,738 |
|
|
$ |
5,043 |
|
|
$ |
(4,552 |
) |
|
$ |
9,229 |
|
Reclassifications of unrealized gains (losses) on available for sale securities are reported in the Company’s Consolidated Statements of Income as “Gains on securities transactions, net” with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported gains of $3,000 and $404,000 for the three months and $146,000 and $597,000 for the six months ended June 30, 2016 and 2015, respectively, related to the sale of securities. The tax effect of these transactions during the three and six months ended June 30, 2016 and 2015 were $1,000 and $51,000 and $142,000 and $209,000, respectively, which amounts were included as a component of income tax expense.
Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported net interest expense of $212,000 and $429,000 and $63,000 and $482,000 for the three and six months ended June 30, 2016 and 2015, respectively. The tax effect of these transactions during the three and six months ended June 30, 2016 and 2015 were $74,000 and $150,000 and $22,000 and $169,000, respectively, which were included as a component of income tax expense.
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