Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $19.2 million for the three months ended September 30, 2015, compared to $13.6 million for the three months ended September 30, 2014. Comprehensive income was $47.9 million for the nine months ended September 30, 2015, compared to $43.2 million for the same period in 2014. The difference between net income as reported and comprehensive income was due to changes in unrealized gains and losses, net of tax on available-for-sale securities.

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 statement of income, we used a 35 percent tax rate. 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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Beginning balance	$	2,052		$	1,961		$	2,810		$	(4,295	)
Other comprehensive income/(loss) before reclassification		1,400			121			(188	)		6,192
Amounts reclassified from accumulated other comprehensive income		(92	)		(4	)		738			181
Net current period other comprehensive income/(loss)		1,308			117			550			6,373
Ending balance	$	3,360		$	2,078		$	3,360		$	2,078

The sale or other-than-temporary impairment 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 September 30,						Nine Months Ended September 30,						Affected line item in the statement of income
	2015			2014			2015			2014
	(in thousands)
Unrealized gains/(losses) on available-for-sale securities	$	142		$	1		$	464		$	(270	)	Net realized gains/(losses) on investments
Other-than-temporary impairment		—			5			(1,600	)		(8	)	Net realized gains/(losses) on investments
		142			6			(1,136	)		(278	)	Income before income taxes
		(50	)		(2	)		398			97		Income tax expense
	$	92		$	4		$	(738	)	$	(181	)	Net income