Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income

v3.19.3
Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income for the three months ended September 30, 2019 and 2018 was as follows:
 
Unrealized Gains
and Losses on
Available for Sale
Securities
 
Tax (Expense) Benefit
 
Total
 
(in thousands)
September 30, 2019
 
 
 
 
 
Balance at beginning of period
$
3,336

 
$
(961
)
 
$
2,375

Other comprehensive loss before reclassification
1,873

 
(540
)
 
1,333

Reclassification from accumulated other comprehensive income
—

 
—

 
—

Period change
1,873

 
(540
)
 
1,333

Balance at end of period
$
5,209

 
$
(1,501
)
 
$
3,708

 
 
 
 
 
 
September 30, 2018
 
 
 
 
 
Balance at beginning of period
$
(13,092
)
 
$
3,768

 
$
(9,324
)
Other comprehensive loss before reclassification
(2,750
)
 
798

 
(1,952
)
Reclassification from accumulated other comprehensive income
(19
)
 
—

 
(19
)
Period change
(2,769
)
 
798

 
(1,971
)
Balance at end of period
$
(15,861
)
 
$
4,566

 
$
(11,295
)


For the three months ended September 30, 2018, there was a $19,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $19,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of securities under noninterest income. Net unrealized gain of $21,000 related to these sold securities had previously been recorded in accumulated other comprehensive income as of the beginning of the period. No such reclassification from accumulated other comprehensive income to gains in earnings and no unrealized gain (loss) existed for the three months ended September 30, 2019.

Activity in accumulated other comprehensive income for the nine months ended September 30, 2019 and 2018 was as follows:
 
Unrealized Gains
and Losses on
Available for Sale
Securities
 
Tax Benefit (Expense)
 
Total
 
(in thousands)
September 30, 2019
 
 
 
 
 
Balance at beginning of period
$
(8,536
)
 
$
2,457

 
$
(6,079
)
Other comprehensive loss before reclassification
15,040

 
(3,958
)
 
11,082

Reclassification from accumulated other comprehensive income
(1,295
)
 
—

 
(1,295
)
Period change
13,745

 
(3,958
)
 
9,787

Balance at end of period
$
5,209

 
$
(1,501
)
 
$
3,708

 
 
 
 
 
 
September 30, 2018
 
 
 
 
 
Balance at beginning of period
$
(3,188
)
 
$
1,319

 
$
(1,869
)
Other comprehensive loss before reclassification
(13,115
)
 
3,793

 
(9,322
)
Reclassification from accumulated other comprehensive income
(87
)
 
—

 
(87
)
Adjustment to accumulated other comprehensive income related to adoption of ASU 2016-01 and 2018-02 (see Notes 2 and 5)
529

 
(546
)
 
(17
)
Period change
(12,673
)
 
3,247

 
(9,426
)
Balance at end of period
$
(15,861
)
 
$
4,566

 
$
(11,295
)


For the nine months ended September 30, 2019, there was a $1.3 million reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $1.3 million reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of securities under noninterest income. Net unrealized gains of $586,000 related to these sold securities had previously been recorded in accumulated other comprehensive income as of the beginning of the period.

For the nine months ended September 30, 2018, there was a $87,000 reclassification from accumulated other comprehensive loss to reduction in earnings resulting from the sale of available-for-sale securities. The $87,000 reclassification adjustment out of accumulated other comprehensive income was included in net loss on sales of securities under noninterest income. Net unrealized gains of $116,000 related to these sold securities had previously been recorded in accumulated other comprehensive income as of the beginning of the period.

The Company recorded a net $17,000 adjustment related to adoption of two new accounting standards (ASU 2016-01 and ASU 2018-02) effective January 1, 2018. The $17,000 adjustment includes a $529,000 reduction of unrealized losses related to the Company's mutual funds equity securities upon adoption of ASU 2016-01 and a $546,000 reduction in tax benefits upon adoption of ASU 2016-01 and ASU 2018-02. All mutual fund equity securities were sold during the three months ended March 31, 2018. See Notes 2 and 5 to the unaudited consolidated financial statements for additional information on adoption of ASU 2016-01 and ASU 2018-02, respectively.