Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME

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

	September 30,		December 31,
	2018		2017
	(In thousands)
Unrealized loss on securities available-for-sale which are not other-than-temporarily impaired	$	(24,343)	$	(3,003)
Income tax effect of unrealized loss on securities available-for-sale		3,155		365
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		(21,188)		(2,638)
Unrealized gain (loss) on cash flow hedges		643		(510)
Income tax effect of unrealized (gain) loss on cash flow hedges		(250)		199
Net unrealized gain (loss) on cash flow hedges		393		(311)
Accumulated other comprehensive (loss), net of income taxes	$	(20,795)	$	(2,949)

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

	Quarter Ended September 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	$	(15,518)	$	256	$	(15,262)	$	256	$	(563)	$	(307)
Other comprehensive loss before reclassifications		(5,607)		(380)		(5,987)		1,185		(74)		1,111
Amounts reclassified out of accumulated other comprehensive income (loss)		(63)		517		454		(70)		108		38
Other comprehensive income (loss)		(5,670)		137		(5,533)		1,115		34		1,149
Ending balance	$	(21,188)	$	393	$	(20,795)	$	1,371	$	(529)	$	842

	Nine-Month Period Ended September 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		(18,361)		(635)		(18,996)		(726)		(301)		(1,027)
Amounts reclassified out of accumulated other comprehensive income (loss)		(189)		1,339		1,150		(112)		385		273
Other comprehensive income (loss)		(18,550)		704		(17,846)		(838)		84		(754)
Ending balance	$	(21,188)	$	393	$	(20,795)	$	1,371	$	(529)	$	842

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

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

	Quarter Ended September 30,
		2018		2017
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	517	$	108	Net interest expense
Available-for-sale securities:
Gain on sale of investments		-		4	Income tax expense
Residual tax effect from OIB's change in applicable tax rate		-		1	Income tax expense
Tax effect from changes in tax rates		(63)		(71)	Income tax expense
	$	454	$	42

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

	Nine-Month Period Ended September 30,
		2018		2017
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	1,339	$	385	Net interest expense
Available-for-sale securities:
Gain on sale of investments		-		6,896	Income tax expense
Residual tax effect from OIB's change in applicable tax rate		5		104	Income tax expense
Tax effect from changes in tax rates		(194)		(216)	Income tax expense
	$	1,150	$	7,169