Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income [Abstract]

NOTE 24 - ACCUMULATED OTHER COMPREHENSIVE INCOME

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

	December 31,
	2019		2018
	(In thousands)
Unrealized loss on securities available-for-sale which are not other-than-temporarily impaired	$	(306)	$	(12,654)
Income tax effect of unrealized loss on securities available-for-sale		(135)		1,682
Net unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		(441)		(10,972)
Unrealized (loss) gain on cash flow hedges		(907)		14
Income tax effect of unrealized (loss) gain on cash flow hedges		340		(5)
Net unrealized (loss) gain on cash flow hedges		(567)		9
Accumulated other comprehensive (loss), net of income taxes	$	(1,008)	$	(10,963)

Unrealized losses on available-for-sale securities includes $12.0 million, net of tax effect of the adoption of ASU No. 2017-12 from 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 years ended December 31, 2019, 2018 and 2017:

	Year Ended December 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)
Transfer of securities held to maturity to available-for-sale		(12,041)		-		(12,041)
Other comprehensive income (loss) before reclassifications		14,335		(2,442)		11,893
Amounts reclassified out of accumulated other comprehensive income (loss)		8,237		1,866		10,103
Other comprehensive income (loss)		10,531		(576)		9,955
Ending balance	$	(441)	$	(567)	$	(1,008)

	Year Ended December 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 before reclassifications		(8,104)		(1,555)		(9,659)
Amounts reclassified out of accumulated other comprehensive income (loss)		(230)		1,875		1,645
Other comprehensive income (loss)		(8,334)		320		(8,014)
Ending balance	$	(10,972)	$	9	$	(10,963)

	Year Ended December 31,
	2017
	Net unrealized		Net unrealized		Accumulated
	gains on		loss on		other
	securities		cash flow		comprehensive
	available-for-sale		hedges		(loss) income
	(In thousands)
Beginning balance	$	2,209		(613)		1,596
Other comprehensive loss before reclassifications		(11,563)		(186)		(11,749)
Amounts reclassified out of accumulated other comprehensive income (loss)		6,716		488		7,204
Other comprehensive (loss) income		(4,847)		302		(4,545)
Ending balance	$	(2,638)	$	(311)	$	(2,949)

The following table presents reclassifications out of accumulated other comprehensive income for the years ended December 31, 2019, 2018 and 2017:

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

	Year Ended December 31,
		2019		2018		2017
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	1,866	$	1,875	$	488	Net interest expense
Available-for-sale securities:
Gain on sale of investments		8,274		-		6,896	Net gain on sale of securities
Residual tax effect from OIB's change in applicable tax rate		-		5		104	Income tax expense
Tax effect from changes in tax rates		(37)		(235)		(284)	Income tax expense
	$	10,103	$	1,645	$	7,204