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Comprehensive Income and Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Comprehensive Income and Accumulated Other Comprehensive Income

Note 7. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $17.6 million for the three months ended September 30, 2018, compared to $17.2 million for the three months ended September 30, 2017.  Comprehensive income was $45.0 million for the nine months ended September 30, 2018, compared to $49.1 million for the same period in 2017.  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 debt securities.

Comprehensive income includes net income plus unrealized gains (losses) on our available-for-sale debt securities, net of tax. In reporting comprehensive income on a net basis in the statements of comprehensive income, we used a 21 percent tax rate in 2018 and a 35 percent tax rate in 2017. 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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Beginning balance

 

$

(2,083

)

 

$

2,416

 

 

$

3,612

 

 

$

(492

)

Other comprehensive income (loss) before

   reclassification

 

 

(2,143

)

 

 

820

 

 

 

(7,964

)

 

 

4,032

 

Amounts reclassified from accumulated other

   comprehensive income

 

 

25

 

 

 

(203

)

 

 

151

 

 

 

(507

)

Net current period other comprehensive

   income (loss)

 

 

(2,118

)

 

 

617

 

 

 

(7,813

)

 

 

3,525

 

Ending balance

 

$

(4,201

)

 

$

3,033

 

 

$

(4,201

)

 

$

3,033

 

 

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

 

Three Months Ended

 

 

Nine Months Ended

 

 

Affected line item in the

Comprehensive Income

 

September 30,

 

 

September 30,

 

 

statement of income

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

(in thousands)

 

 

 

Unrealized gains (losses) on

   available-for-sale securities

 

$

(32

)

 

$

312

 

 

$

(445

)

 

$

780

 

 

Net realized losses on

   investments

 

 

 

(32

)

 

 

312

 

 

 

(445

)

 

 

780

 

 

Income before income taxes

 

 

 

7

 

 

 

(109

)

 

 

40

 

 

 

(273

)

 

Income tax expense

 

 

$

(25

)

 

$

203

 

 

$

(405

)

 

$

507

 

 

Net income