Quarterly report pursuant to Section 13 or 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.5.0.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The change in accumulated other comprehensive income (loss) for the three and nine months ended September 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 - June 30, 2016
$
14,412


$
3,853


$
(9,366
)

$
8,899

Other comprehensive income (loss)
1,121


(237
)

(78
)

806

Amounts reclassified from accumulated other comprehensive income
—


—


154


154

Net current period other comprehensive income (loss)
1,121


(237
)

76


960

Balance - September 30, 2016
$
15,533


$
3,616


$
(9,290
)

$
9,859





 
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)
7,851

 
(816
)
 
(3,766
)
 
3,269

Amounts reclassified from accumulated other comprehensive income
(95
)
 
—

 
433

 
338

Net current period other comprehensive income (loss)
7,756

 
(816
)
 
(3,333
)
 
3,607

Balance - September 30, 2016
$
15,533

 
$
3,616

 
$
(9,290
)
 
$
9,859

 






















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 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)
(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


 

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 $0 and $145,000 for the three and nine months ended September 30, 2016 and $75,000 and $672,000 for the three and nine months ended September 30, 2015, related to the sale of securities. The Company recorded $300,000 in OTTI in the third quarter of 2015 on a municipal security in the available for sale portfolio. The tax effects of the gains on sales of securities transaction, net of OTTI recorded, were $0 and $51,000 during the three and nine months ended September 30, 2016 and $79,000 and $130,000 during the three and nine months ended September 30, 2015, 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 $237,000 and $666,000 for the three and nine months ended September 30, 2016 and $241,000 and $723,000 for the three and nine months ended September 30, 2015. The tax effects of these transactions were $83,000 and $233,000 during the three and nine months ended September 30, 2016 and $84,000 and $253,000 during the three and nine months ended September 30, 2015, which were included as a component of income tax expense.