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Comprehensive Income and Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Comprehensive Income and Accumulated Other Comprehensive Income

14.Comprehensive Income and Accumulated Other Comprehensive Income

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 statements of comprehensive income, we used a 21 percent tax rate.  The difference between net income as reported and comprehensive income was due primarily to changes in unrealized gains and losses, net of tax, on available-for-sale debt securities.  The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements.

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Balance, beginning of period

 

$

21,019

 

 

$

12,211

 

 

$

(832

)

Other comprehensive income (loss) before reclassification

 

 

(5,289

)

 

 

9,538

 

 

 

12,379

 

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

(2,193

)

 

 

(730

)

 

 

664

 

Net current period other comprehensive income (loss)

 

 

(7,482

)

 

 

8,808

 

 

 

13,043

 

Balance, end of period

 

$

13,537

 

 

$

21,019

 

 

$

12,211

 

 

The sale or credit loss allowance adjustment 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 (Loss)

 

Year Ended December 31,

 

 

Affected line item in the statement

of income

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

(in thousands)

 

 

 

Unrealized gains (losses) on available-for-

   sale securities

 

$

2,776

 

 

$

925

 

 

$

(841

)

 

Net realized gains (losses) on

   investments

 

 

 

2,776

 

 

 

925

 

 

 

(841

)

 

Income before income taxes

 

 

 

(583

)

 

 

(195

)

 

 

177

 

 

Income tax expense

 

 

$

2,193

 

 

$

730

 

 

$

(664

)

 

Net income

 

 

 

 

Pre-Tax

Amount

 

 

Tax Expense (Benefit)

 

 

Net-of-Tax

Amount

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on securities:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on available-for-sale securities

 

$

(6,695

)

 

$

(1,406

)

 

$

(5,289

)

Reclassification adjustment for gains realized in net income

 

 

(2,776

)

 

 

(583

)

 

 

(2,193

)

Net unrealized loss

 

 

(9,471

)

 

 

(1,989

)

 

 

(7,482

)

Other comprehensive loss

 

$

(9,471

)

 

$

(1,989

)

 

$

(7,482

)

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on securities:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

$

12,074

 

 

$

2,536

 

 

$

9,538

 

Reclassification adjustment for losses realized in net income

 

 

(925

)

 

 

(195

)

 

 

(730

)

Net unrealized gain

 

 

11,149

 

 

 

2,341

 

 

 

8,808

 

Other comprehensive income

 

$

11,149

 

 

$

2,341

 

 

$

8,808

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on securities:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

$

15,670

 

 

$

3,291

 

 

$

12,379

 

Reclassification adjustment for gains realized in net income

 

 

841

 

 

 

177

 

 

 

664

 

Net unrealized gain

 

 

16,511

 

 

 

3,468

 

 

 

13,043

 

Other comprehensive income

 

$

16,511

 

 

$

3,468

 

 

$

13,043