Comprehensive Income and Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2023

Comprehensive Income and Accumulated Other Comprehensive Loss

Note 7. Comprehensive Income and Accumulated Other Comprehensive Loss

Comprehensive income includes net income less unrealized 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 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 loss for each period presented in the interim financial statements.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
	(in thousands)
Balance, beginning of period	$	(12,100	)	$	(8,874	)	$	(13,828	)	$	13,537
Other comprehensive loss before reclassification		(8,455	)		(10,252	)		(6,881	)		(31,956	)
Amounts reclassified from accumulated other comprehensive loss		192			(838	)		346			(1,545	)
Net current period other comprehensive loss		(8,263	)		(11,090	)		(6,535	)		(33,501	)
Balance, end of period	$	(20,363	)	$	(19,964	)	$	(20,363	)	$	(19,964	)

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


Component of Accumulated Other	Three Months Ended						Nine Months Ended						Affected line item in the
Comprehensive Loss	September 30,						September 30,						statement of income
	2023			2022			2023			2022
	(in thousands)
Unrealized gains (losses) on debt securities, net of tax	$	(243	)	$	1,061		$	(438	)	$	1,955		Net realized gains on investments
		(243	)		1,061			(438	)		1,955		Income before income taxes
Unrealized gains (losses) on debt securities, net of tax		51			(223	)		92			(410	)	Income tax expense
	$	(192	)	$	838		$	(346	)	$	1,545		Net income