Annual report pursuant to Section 13 and 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.3.1.900
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 12 Months Ended
Dec. 31, 2015
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

11.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The change in accumulated other comprehensive income (loss) for the year ended December 31, 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 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)

 

 (3,640)

 

 

 (819)

 

 

 (1,394)

 

 

 (5,853)

Amounts reclassified from accumulated other comprehensive income

 

 (771)

 

 

 -

 

 

 621 

 

 

 (150)

Net current period other comprehensive income (loss)

 

 (4,411)

 

 

 (819)

 

 

 (773)

 

 

 (6,003)

 

 

 

 

 

 

 

 

 

 

 

 

Balance - December 31, 2015

$

 7,777 

 

$

 4,432 

 

$

 (5,957)

 

$

 6,252 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in accumulated other comprehensive income (loss) for the year ended December 31, 2014 is summarized as follows, net of tax (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 17,089 

 

 

 (2,393)

 

 

 14,696 

 

Amounts reclassified from accumulated other comprehensive income

 

 (842)

 

 

 591 

 

 

 (251)

 

Net current period other comprehensive income (loss)

 

 16,247 

 

 

 (1,802)

 

 

 14,445 

 

 

 

 

 

 

 

 

 

 

 

Balance - December 31, 2014

$

 17,439 

 

$

 (5,184)

 

$

 12,255 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in accumulated other comprehensive income (loss) for the year ended December 31, 2013 is summarized as follows, net of tax (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains (Losses) on AFS Securities

 

Change in Fair Value of Cash Flow Hedges

 

Total

 

Balance - December 31, 2012

$

 14,573 

 

$

 (4,489)

 

$

 10,084 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 (13,367)

 

 

 583 

 

 

 (12,784)

 

Amounts reclassified from accumulated other comprehensive income

 

 (14)

 

 

 524 

 

 

 510 

 

Net current period other comprehensive income (loss)

 

 (13,381)

 

 

 1,107 

 

 

 (12,274)

 

 

 

 

 

 

 

 

 

 

 

Balance - December 31, 2013

$

 1,192 

 

$

 (3,382)

 

$

 (2,190)

 

 

 

 

 

 

 

 

 

 

 

 

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 $1.5 million for the year ended December 31, 2015, related to the sale of securities. Excluding the OTTI recovery of $400,000 in the second quarter of 2014, the Company reported gains of $1.3 million for the year ended December 31, 2014 and gains of $21,000 for the year ended December 31, 2013, related to the sale of securities.    The tax effect of these transactions during the years ended December 31, 2015, 2014, and 2013 were $415,000, $453,000, and $7,000, respectively, which were included as a component of income tax expense.  The Company recorded $300,000 in OTTI in the third quarter of 2015 on a municipal security in the available for sale portfolio.  See Note 3 “Securities” for additional information on the OTTI.    

 

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 $956,000,  $909,000, and $805,000 for the years ended December 31, 2015, 2014, and 2013, respectively.  The tax effect of these transactions during the years ended December 31, 2015, 2014, and 2013 were $335,000,  $318,000, and $281,000, respectively, which were included as a component of income tax expense.