Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Income [Abstract]

NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, net of income taxes, as of June 30, 2019 and December 31, 2018 consisted of:

	June 30,		December 31,
	2019		2018
	(In thousands)
Unrealized loss on securities available-for-sale which are not other-than-temporarily impaired	$	(3,478)	$	(12,654)
Income tax effect of unrealized loss on securities available-for-sale		391		1,682
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		(3,087)		(10,972)
Unrealized (loss) gain on cash flow hedges		(958)		14
Income tax effect of unrealized (loss) gain on cash flow hedges		359		(5)
Net unrealized (loss) gain on cash flow hedges		(599)		9
Accumulated other comprehensive (loss), net of income taxes	$	(3,686)	$	(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 and six-month periods ended June 30, 2019 and 2018:

	Quarter Ended June 30,
	2019						2018
	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	$	(7,841)	$	(206)	$	(8,047)	$	(12,274)	$	89	$	(12,185)
Other comprehensive income (loss) before reclassifications		(10)		(952)		(962)		(3,178)		(281)		(3,459)
Amounts reclassified out of accumulated other comprehensive (loss) income		4,764		559		5,323		(66)		448		382
Other comprehensive income (loss)		4,754		(393)		4,361		(3,244)		167		(3,077)
Ending balance	$	(3,087)	$	(599)	$	(3,686)	$	(15,518)	$	256	$	(15,262)

	Six-Month Period Ended June 30, 2018
	2019						2018
	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	$	(10,972)	$	9	$	(10,963)	$	(2,638)	$	(311)	$	(2,949)
Transfer of securities held to maturity to available-for-sale		(12,041)		-		(12,041)		-		-		-
Other comprehensive (loss) income before reclassifications		15,178		(1,384)		13,794		(12,754)		(255)		(13,009)
Amounts reclassified out of accumulated other comprehensive (loss) income		4,748		776		5,524		(126)		822		696
Other comprehensive income (loss)		7,885		(608)		7,277		(12,880)		567		(12,313)
Ending balance	$	(3,087)	$	(599)	$	(3,686)	$	(15,518)	$	256	$	(15,262)

The following table presents reclassifications out of accumulated other comprehensive income for the quarters and six-month periods ended June 30, 2019 and 2018:

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

	Quarter Ended June 30,
		2019		2018
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	559	$	448
Available-for-sale securities:					Net interest expense
Gain on sale of investments		4,776		-	Net gain on sale of securities
Tax effect from changes in tax rates		(13)		(66)	Income tax expense
	$	5,322	$	382


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

	Six-Month Period Ended June 30,
		2019		2018
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	776	$	822
Available-for-sale securities:					Net interest expense
Gain on sale of investments		4,776		-	Income tax expense
Residual tax effect from OIB's change in applicable tax rate		-		5	Income tax expense
Tax effect from changes in tax rates		(29)		(131)	Income tax expense
	$	5,523	$	696