Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

Note 6. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $16.2 million for the three months ended September 30, 2016, compared to $19.2 million for the three months ended September 30, 2015. Comprehensive income was $62.8 million for the nine months ended September 30, 2016, compared to $47.9 million for the same period in 2015. 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,
	2016			2015			2016			2015
	(in thousands)
Beginning balance	$	8,309		$	2,052		$	2,587		$	2,810
Other comprehensive income (loss) before reclassification		(1,589	)		1,400			4,286			(188	)
Amounts reclassified from accumulated other    comprehensive income		(124	)		(92	)		(277	)		738
Net current period other comprehensive income (loss)		(1,713	)		1,308			4,009			550
Ending balance	$	6,596		$	3,360		$	6,596		$	3,360

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
	2016			2015			2016			2015
	(in thousands)
Unrealized gains on available-for-sale securities	$	191		$	142		$	426		$	464		Net realized gains (losses) on investments
Other-than-temporary impairment		—			—			—			(1,600	)	Net realized gains (losses) on investments
		191			142			426			(1,136	)	Income before income taxes
		(67	)		(50	)		(149	)		398		Income tax expense
	$	124		$	92		$	277		$	(738	)	Net income