Comprehensive Income and Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2023

Comprehensive Income and Accumulated Other Comprehensive Income

Note 7. 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% tax rate in 2023 and 2022. 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 for each period presented in the interim financial statements.


	Three Months Ended
	March 31,
	2023			2022
	(in thousands)
Balance, beginning of period	$	(13,828	)	$	13,537
Other comprehensive income (loss) before reclassification		4,339			(13,170	)
Amounts reclassified from accumulated other comprehensive loss		5			(310	)
Net current period other comprehensive income (loss)		4,344			(13,480	)
Balance, end of period	$	(9,484	)	$	57

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	Three Months Ended March 31,						Affected line item in the statement of income
	2023			2022
	(in thousands)
Unrealized gains (losses) on debt securities, net of tax	$	(6	)	$	393		Net realized gains on investments
		(6	)		393		Income before income taxes
Unrealized gains (losses) on debt securities, net of tax		1			(83	)	Income tax expense
	$	(5	)	$	310		Net income