Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

Note 7. Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) includes net income plus unrealized gains (losses) on our available-for-sale investment securities, net of tax. In reporting comprehensive income (loss) on a net basis in the statements of comprehensive income (loss), we used a 21 percent tax rate in 2022 and 2021. The difference between net income as reported and comprehensive income (loss) 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 interim financial statements.

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Balance, beginning of period	$	57		$	15,971		$	13,537		$	21,019
Other comprehensive income (loss) before reclassification		(8,248	)		2,139			(21,705	)		(2,596	)
Amounts reclassified from accumulated other comprehensive income (loss)		(683	)		(1,248	)		(706	)		(1,561	)
Net current period other comprehensive income (loss)		(8,931	)		891			(22,411	)		(4,157	)
Balance, end of period	$	(8,874	)	$	16,862		$	(8,874	)	$	16,862

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

Component of Accumulated Other	Three Months Ended						Six Months Ended						Affected line item in the
Comprehensive Income (Loss)	June 30,						June 30,						statement of income
	2022			2021			2022			2021
	(in thousands)
Unrealized gains on debt securities, net of tax	$	865		$	1,580		$	894		$	1,976		Net realized gains on investments
		865			1,580			894			1,976		Income before income taxes
Unrealized gains on debt securities, net of tax		(182	)		(332	)		(188	)		(415	)	Income tax expense
	$	683		$	1,248		$	706		$	1,561		Net income