Comprehensive Income and Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

Note 7. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $14.5 million for the three months ended March 31, 2017, compared to $27.1 million for the three months ended March 31, 2016.  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 March 31,
	2017			2016
	(in thousands)
Beginning balance	$	(492	)	$	2,587
Other comprehensive income before reclassification		978			3,033
Amounts reclassified from accumulated other    comprehensive income		(26	)		(240	)
Net current period other comprehensive income		952			2,793
Ending balance	$	460		$	5,380

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 March 31,						Affected line item in the statement of income
	2017			2016
	(in thousands)
Unrealized gains on available-for-sale      securities	$	40		$	369		Net realized gains (losses) on investments
		40			369		Income before income taxes
		(14	)		(129	)	Income tax expense
	$	26		$	240		Net income