Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.3.0.814
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 9 Months Ended
Sep. 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 nine months ended September 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 - June 30, 2015

$
8,738 

 

$
5,043 

 

$
(4,552)

 

$
9,229 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 
1,250 

 

 
(308)

 

 
(2,328)

 

 
(1,386)

Amounts reclassified from accumulated other comprehensive income

 
146 

 

 

 -

 

 
157 

 

 
303 

Net current period other comprehensive income (loss)

 
1,396 

 

 
(308)

 

 
(2,171)

 

 
(1,083)

 

 

 

 

 

 

 

 

 

 

 

 

Balance - September 30, 2015

$
10,134 

 

$
4,735 

 

$
(6,723)

 

$
8,146 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 
(1,812)

 

 
(516)

 

 
(2,009)

 

 
(4,337)

Amounts reclassified from accumulated other comprehensive income

 
(242)

 

 

 -

 

 
470 

 

 
228 

Net current period other comprehensive income (loss)

 
(2,054)

 

 
(516)

 

 
(1,539)

 

 
(4,109)

 

 

 

 

 

 

 

 

 

 

 

 

Balance - September 30, 2015

$
10,134 

 

$
4,735 

 

$
(6,723)

 

$
8,146 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in accumulated other comprehensive income (loss) for the three and nine months ended September 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 - June 30, 2014

$
14,202 

 

$
(3,321)

 

$
10,881 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 
1,798 

 

 
(228)

 

 
1,570 

 

Amounts reclassified from accumulated other comprehensive income

 
(647)

 

 
164 

 

 
(483)

 

Net current period other comprehensive income (loss)

 
1,151 

 

 
(64)

 

 
1,087 

 

 

 

 

 

 

 

 

 

 

 

Balance - September 30, 2014

$
15,353 

 

$
(3,385)

 

$
11,968 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 
14,843 

 

 
(431)

 

 
14,412 

 

Amounts reclassified from accumulated other comprehensive income

 
(682)

 

 
428 

 

 
(254)

 

Net current period other comprehensive income (loss)

 
14,161 

 

 
(3)

 

 
14,158 

 

 

 

 

 

 

 

 

 

 

 

Balance - September 30, 2014

$
15,353 

 

$
(3,385)

 

$
11,968 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $75,000 and $672,000 for the three and nine months ended September 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 $995,000 and $1.0 million for the three and nine months ended September 30, 2014, respectively, related to the sale of securities. The Company recorded $300,000 in other-than-temporary impairment in the current quarter on a municipal security in the available for sale portfolio. The tax effect of these transactions during the three and nine months ended September 30, 2015 and 2014 were $79,000 and $130,000 and $348,000 and $367,000, 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 $241,000 and $723,000 and $253,000 and $659,000 for the three and nine months ended September 30, 2015 and 2014, respectively.  The tax effect of these transactions during the three and nine months ended September 30, 2015 and 2014 were $84,000 and $253,000 and $89,000 and $231,000, respectively, which amounts were included as a component of income tax expense.