Comprehensive Income and Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

14. 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 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 (loss) for each period presented in the financial statements.

	Year Ended December 31,
	2015			2014			2013
	(in thousands)
Beginning balance	$	2,810		$	(4,295	)	$	2,979
Other comprehensive income (loss) before reclassification		(1,584	)		6,558			(7,525	)
Amounts reclassified from accumulated other comprehensive income		1,361			547			251
Net current period other comprehensive income (loss)		(223	)		7,105			(7,274	)
Ending balance	$	2,587		$	2,810		$	(4,295	)

The sale or other-than-temporary impairment (OTTI) 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	Year Ended December 31,									Affected line item in the statement of income
	2015			2014			2013
	(in thousands)
Unrealized gains (losses) on available-for-sale securities	$	(494	)	$	(825	)	$	30		Net realized gains (losses) on investments
Other-than-temporary impairment		(1,600	)		(16	)		(416	)	Net realized gains (losses) on investments
		(2,094	)		(841	)		(386	)	Income before income taxes
		733			294			135		Income tax expense
	$	(1,361	)	$	(547	)	$	(251	)	Net income

	Pre-Tax     Amount			Tax Expense			Net-of-Tax       Amount
	(in thousands)
December 31, 2015
Unrealized loss on securities:
Unrealized loss on available-for-sale securities	$	(2,572	)	$	(900	)	$	(1,672	)
Change in unrealized losses on available-for-sale securities with OTTI		176			62			114
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(40	)		(14	)		(26	)
Reclassification adjustment for gains realized in net income		2,093			732			1,361
Net unrealized loss		(343	)		(120	)		(223	)
Other comprehensive income	$	(343	)	$	(120	)	$	(223	)
December 31, 2014
Unrealized gain on securities:
Unrealized gain on available-for-sale securities	$	10,133		$	3,546		$	6,587
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(44	)		(15	)		(29	)
Reclassification adjustment for gains realized in net income		842			295			547
Net unrealized gain		10,931			3,826			7,105
Other comprehensive income	$	10,931		$	3,826		$	7,105
December 31, 2013
Unrealized loss on securities:
Unrealized loss on available-for-sale securities	$	(11,724	)	$	(4,104	)	$	(7,620	)
Change in unrealized losses on available-for-sale securities with OTTI		222			78			144
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(75	)		(26	)		(49	)
Reclassification adjustment for gains realized in net income		386			135			251
Net unrealized loss		(11,191	)		(3,917	)		(7,274	)
Other comprehensive income	$	(11,191	)	$	(3,917	)	$	(7,274	)