Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, net of income taxes, as of March 31, 2019 and December 31, 2018 consisted of:

	March 31,		December 31,
	2019		2018
	(In thousands)
Unrealized loss on securities available-for-sale which are not other-than-temporarily impaired	$	(9,280)	$	(12,654)
Income tax effect of unrealized loss on securities available-for-sale		1,439		1,682
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		(7,841)		(10,972)
Unrealized (loss) gain on cash flow hedges		(329)		14
Income tax effect of unrealized (loss) gain on cash flow hedges		123		(5)
Net unrealized (loss) gain on cash flow hedges		(206)		9
Accumulated other comprehensive (loss), net of income taxes	$	(8,047)	$	(10,963)

Unrealized losses on available-for-sale securities includes $14.4 million as effect of the adoption of ASU No. 2017-12 and reclassification of all of its mortgage backed securities with carrying value of $424.7 million, from the held-to-maturity portfolio into the available-for-sale portfolio.

The following table presents changes in accumulated other comprehensive income by component, net of taxes, for the quarters ended March 31, 2019 and 2018:

	Quarter Ended March 31, 2019
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		(loss) income
	(In thousands)
Beginning balance	$	(10,972)	$	9	$	(10,963)
Other comprehensive income (loss)
Transfer of securities held-to-maturity to available-for-sale		(12,041)		-		(12,041)
Other comprehensive income (loss) before reclassifications		15,189		(432)		14,757
Amounts reclassified out of accumulated other comprehensive (loss) income		(17)		217		200
		3,131		(215)		2,916
Ending balance	$	(7,841)	$	(206)	$	(8,047)

	Quarter Ended March 31, 2018
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		(loss) income
	(In thousands)
Beginning balance	$	(2,638)	$	(311)	$	(2,949)
Other comprehensive (loss) income before reclassifications		(9,576)		26		(9,550)
Amounts reclassified out of accumulated other comprehensive (loss) income		(60)		374		314
Other comprehensive (loss) income		(9,636)		400		(9,236)
Ending balance	$	(12,274)	$	89	$	(12,185)

The following table presents reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2019 and 2018:

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

	Quarter Ended March 31,
		2019		2018
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	217	$	374
Available-for-sale securities:					Net interest expense
Residual tax effect from OIB's change in applicable tax rate		-		5	Net impairment losses recognized in earnings
Tax effect from changes in tax rates		(17)		(65)	Income tax expense
	$	200	$	314