Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2018

NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, net of income taxes, as of June 30, 2018 and December 31, 2017 consisted of:

	June 30,		December 31,
	2018		2017
	(In thousands)
Unrealized loss on securities available-for-sale which are not other-than-temporarily impaired	$	(17,967)	$	(3,003)
Income tax effect of unrealized loss on securities available-for-sale		2,449		365
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		(15,518)		(2,638)
Unrealized gain (loss) on cash flow hedges		421		(510)
Income tax effect of unrealized (gain) loss on cash flow hedges		(165)		199
Net unrealized gain (loss) on cash flow hedges		256		(311)
Accumulated other comprehensive (loss), net of income taxes	$	(15,262)	$	(2,949)

The following table presents changes in accumulated other comprehensive income by component, net of taxes, for the quarters and six-month periods ended June 30, 2018 and 2017:

	Quarter Ended June 30,
	2018						2017
	Net unrealized		Net unrealized		Accumulated		Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other		gains on		loss on		other
	securities		cash flow		comprehensive		securities		cash flow		comprehensive
	available-for-sale		hedges		(loss) income		available-for-sale		hedges		(loss) income
	(In thousands)
Beginning balance	$	(12,274)	$	89	$	(12,185)	$	3,850	$	(502)	$	3,348
Other comprehensive loss before reclassifications		(3,178)		(281)		(3,459)		(3,618)		(189)		(3,807)
Amounts reclassified out of accumulated other comprehensive income (loss)		(66)		448		382		24		128		152
Other comprehensive income (loss)		(3,244)		167		(3,077)		(3,594)		(61)		(3,655)
Ending balance	$	(15,518)	$	256	$	(15,262)	$	256	$	(563)	$	(307)

	Six-Month Period Ended June 30,
	2018						2017
	Net unrealized		Net unrealized		Accumulated		Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other		gains on		loss on		other
	securities		cash flow		comprehensive		securities		cash flow		comprehensive
	available-for-sale		hedges		(loss) income		available-for-sale		hedges		(loss) income
	(In thousands)
Beginning balance	$	(2,638)	$	(311)	$	(2,949)	$	2,209	$	(613)	$	1,596
Other comprehensive loss before reclassifications		(12,754)		(255)		(13,009)		(1,911)		(227)		(2,138)
Amounts reclassified out of accumulated other comprehensive income (loss)		(126)		822		696		(42)		277		235
Other comprehensive income (loss)		(12,880)		567		(12,313)		(1,953)		50		(1,903)
Ending balance	$	(15,518)	$	256	$	(15,262)	$	256	$	(563)	$	(307)

The following table presents reclassifications out of accumulated other comprehensive income for the quarters and six-month periods ended June 30, 2018 and 2017:

	Amount reclassified out of accumulated other comprehensive income				Affected Line Item in Consolidated Statement of Operations

	Quarter Ended June 30,
		2018		2017
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	448	$	128	Net interest expense
Available-for-sale securities:
Gain on sale of investments		-		6,891	Income tax expense
Residual tax effect from OIB's change in applicable tax rate		-		95	Income tax expense
Tax effect from changes in tax rates		(66)		(71)	Income tax expense
	$	382	$	7,043

	Amount reclassified out of accumulated other comprehensive income				Affected Line Item in Consolidated Statement of Operations

	Six-Month Period Ended June 30,
		2018		2017
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	822	$	277	Net interest expense
Available-for-sale securities:
Gain on sale of investments		-		6,891	Income tax expense
Residual tax effect from OIB's change in applicable tax rate		5		103	Income tax expense
Tax effect from changes in tax rates		(131)		(145)	Income tax expense
	$	696	$	7,126