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Comprehensive Income and Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Comprehensive Income and Accumulated Other Comprehensive Income

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $13.6 million for the three months ended September 30, 2014, compared to $8.7 million for the three months ended September 30, 2013. Comprehensive income was $43.2 million for the nine months ended September 30, 2014, compared to $20.5 million for the same period in 2013. 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,		  
     2014     2013     2014     2013  
     (in thousands)  

Beginning balance

    $ 1,961      $ (1,626 )    $ (4,295 )    $ 2,979   

Other comprehensive income/(loss) before reclassification

      121        (1,483 )      6,192        (5,809 ) 

Amounts reclassified from accumulated other comprehensive income

      (4 )      438        181        159   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net current period other comprehensive income/(loss)

      117        (1,045 )      6,373        (5,650 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

    $ 2,078      $ (2,671 )    $ 2,078      $ (2,671 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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
     2014     2013     2014     2013      
     (in thousands)      

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

    $ 1      $ (484 )    $ (270 )    $ 362      Net realized gains on investments

Other-than-temporary impairment

      5        (190 )      (8 )      (607 )    Net realized gains on investments
  

 

 

    

 

 

    

 

 

    

 

 

    
     6        (674 )      (278 )      (245 )    Income before income taxes
     (2 )      236       97        86     Income tax expense
  

 

 

    

 

 

    

 

 

    

 

 

    
   $ 4      $ (438 )    $ (181 )    $ (159 )    Net income