Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.2.0.727
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 6 Months Ended
Jun. 30, 2015
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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 Hedges

 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 is summarized as follows, net of tax (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains (Losses) on AFS Securities

 

Change in Fair Value of Cash Flow Hedge

 

Total

 

Balance - March 31, 2014

$
7,486 

 

$
(2,760)

 

$
4,726 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 
6,733 

 

 
(778)

 

 
5,955 

 

Amounts reclassified from accumulated other comprehensive income

 
(17)

 

 
217 

 

 
200 

 

Net current period other comprehensive income (loss)

 
6,716 

 

 
(561)

 

 
6,155 

 

 

 

 

 

 

 

 

 

 

 

Balance - June 30, 2014

$
14,202 

 

$
(3,321)

 

$
10,881 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains (Losses) on AFS Securities

 

 

Change in Fair Value of Cash Flow Hedges

 

Total

 

Balance - December 31, 2013

$
1,192 

 

$
(3,382)

 

$
(2,190)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 
13,046 

 

 
(203)

 

 
12,843 

 

Amounts reclassified from accumulated other comprehensive income

 
(36)

 

 
264 

 

 
228 

 

Net current period other comprehensive income (loss)

 
13,010 

 

 
61 

 

 
13,071 

 

 

 

 

 

 

 

 

 

 

 

Balance - June 30, 2014

$
14,202 

 

$
(3,321)

 

$
10,881 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 net gains of $404,000 and $597,000 for the three and six months ended June 30, 2015, respectively, related to the sale of securities.  Excluding OTTI recovery of $400,000 in the second quarter of 2014, the Company reported net gains of $26,000 and $55,000 for the three and six months ended June 30, 2014, respectively, related to the sale of securities.  The tax effect of these transactions during the three and six months ended June 30, 2015 and 2014 were $142,000 and $209,000 and $9,000 and $19,000, 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 $63,000 and $482,000 and $334,000 and $406,000 for the three and six months ended June 30, 2015 and 2014, respectively.  The tax effect of these transactions during the three and six months ended June 30, 2015 and 2014 were $22,000 and $169,000 and $117,000 and $142,000, respectively, which amounts were included as a component of income tax expense.