Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss)

AOCI includes net income as well as unrealized gains and losses, net of tax, on AFS securities and derivative instruments, as well as changes in the funded status of our defined benefit pension plan. Unrealized gains and losses and changes in the funded status of the pension plan, net of tax, are excluded from net income, and are reflected as a direct charge or credit to shareholders’ equity. Comprehensive income (loss) and the related components are disclosed in the consolidated statements of comprehensive income.

The following table provides a roll-forward of the changes in AOCI by component for the years ended December 31, 2018, 2019 and 2020 (net of tax):


	Unrealized Gains (Losses) on AFS Securities		Unrealized Gains (Losses) on Derivative Instruments		Change in Unrecognized Pension Cost on Defined Benefit Pension Plan		Total
Balance, January 1, 2018	$	391	$	230	$	(3,223)	$	(2,602)
OCI before reclassifications	(7,229)		33		265		(6,931)
Amounts reclassified from AOCI	—		—		345		345
Subtotal	(7,229)		33		610		(6,586)
Tax effect	1,415		(7)		(128)		1,280
OCI, net of tax	(5,814)		26		482		(5,306)
Adoption of ASU 2016-01	223		—		—		223
Balance, December 31, 2018	(5,200)		256		(2,741)		(7,685)
OCI before reclassifications	12,276		(256)		(210)		11,810
Amounts reclassified from AOCI	(6)		—		268		262
Subtotal	12,270		(256)		58		12,072
Tax effect	(2,458)		54		(12)		(2,416)
OCI, net of tax	9,812		(202)		46		9,656
Balance, December 31, 2019	4,612		54		(2,695)		1,971
OCI before reclassifications	7,474		(121)		(238)		7,115
Amounts reclassified from AOCI	(71)		—		176		105
Subtotal	7,403		(121)		(62)		7,220
Tax effect	(1,530)		25		12		(1,493)
OCI, net of tax	5,873		(96)		(50)		5,727
Balance, December 31, 2020	$	10,485	$	(42)	$	(2,745)	$	7,698

Included in OCI are changes in unrealized gains and losses related to auction rate money market preferred stocks. Auction rate money market preferred stocks, for federal income tax purposes, have no deferred federal income taxes related to unrealized gains or losses given the nature of the investments. Changes in unrealized gains and losses related to investments in equity securities were not included in OCI after the adoption of ASU 2016-01, effective January 1, 2018.

A summary of the components of unrealized gains on AFS securities included in OCI follows for the years ended December 31:


	2020						2019						2018
	Auction Rate Money Market Preferred Stocks		All Other AFS Securities		Total		Auction Rate Money Market Preferred Stocks		All Other AFS Securities		Total		Auction Rate Money Market Preferred Stocks		All Other AFS Securities		Total
Unrealized gains (losses) arising during the period	$	118	$	7,356	$	7,474	$	565	$	11,711	$	12,276	$	(495)	$	(6,734)	$	(7,229)
Reclassification adjustment for net (gains) losses included in net income	—		(71)		(71)		—		(6)		(6)		—		—		—
Net unrealized gains (losses)	118		7,285		7,403		565		11,705		12,270		(495)		(6,734)		(7,229)
Tax effect	—		(1,530)		(1,530)		—		(2,458)		(2,458)		—		1,415		1,415
Unrealized gains (losses), net of tax	$	118	$	5,755	$	5,873	$	565	$	9,247	$	9,812	$	(495)	$	(5,319)	$	(5,814)

The following table details reclassification adjustments and the related affected line items in our consolidated statements of income for the years ended December 31:


Details about AOCI components	Amount Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Income
	2020		2019		2018
Unrealized gains (losses) on AFS securities
	$	71	$	6	$	—	Net gains on sale of AFS securities
	15		1		—		Federal income tax expense
	$	56	$	5	$	—	Net income

Change in unrecognized pension cost on defined benefit pension plan
	$	176	$	268	$	345	Other noninterest expenses
	37		56		72		Federal income tax expense
	$	139	$	212	$	273	Net income