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Comprehensive Income and Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2013
Equity [Abstract]  
Comprehensive Income and Accumulated Other Comprehensive Income

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $8.7 million for the three months ended September 30, 2013, compared to $8.6 million for the three months ended September 30, 2012. Comprehensive income was $20.5 million for the nine months ended September 30, 2013, as compared to $22.0 million for the same period in 2012. The difference between net income as reported and comprehensive income was due to changes in unrealized gains and losses, net of tax on available-for-sale securities.

Comprehensive income includes net income plus unrealized gains/losses on our available-for-sale investment securities, net of tax. In reporting comprehensive income on a net basis in the statement of income, we used a 35 percent tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income for each period presented in the interim financial statements.

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2012     2013     2012  
     (in thousands)     (in thousands)  

Beginning balance

    $ (1,626 )    $ 2,665      $ 2,979      $ 2,215   

Other comprehensive income/(loss) before reclassification

      (1,483 )      1,797        (5,809 )      2,794   

Amounts reclassified from accumulated other comprehensive income

      438        (348 )      159        (895 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net current period other comprehensive income

      (1,045 )      1,449        (5,650 )      1,899   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at September 30, 2013

    $ (2,671 )    $ 4,114      $ (2,671 )    $ 4,114   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table.

 

Component of Accumulated Other

Comprehensive Income

    Three Months Ended
September 30,		     Nine Months Ended
September 30,		    

Affected line item in the statement of

income
     2013     2012     2013     2012      
     (in thousands)     (in thousands)      

Unrealized gains/(losses) on available-for-sale securities

    $ (484 )    $ 535      $ 362      $ 1,377     

Net realized gains/(losses) on investments

Other-than-temporary impairment

      (190 )      —         (607 )      —      

Net realized gains/(losses) on investments
  

 

 

    

 

 

    

 

 

    

 

 

    
     (674 )      535        (245 )      1,377      Income before income taxes
     236        (187 )      86        (482 )    Income tax expense
  

 

 

    

 

 

    

 

 

    

 

 

    
   $ (438 )    $ 348      $ (159 )    $ 895      Net income