Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income

Note 7. 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 statements of comprehensive income, we used a 21 percent tax rate in 2021 and 2020.  The difference between net income as reported and comprehensive income was due primarily to changes in unrealized gains and losses, net of tax on available-for-sale debt securities.

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,
	2021			2020			2021			2020
	(in thousands)
Balance, beginning of period	$	16,862		$	19,178		$	21,019		$	12,211
Other comprehensive income (loss) before    reclassification		(1,614	)		1,316			(4,210	)		8,317
Amounts reclassified from accumulated other    comprehensive income		(262	)		(582	)		(1,823	)		(616	)
Net current period other comprehensive    income (loss)		(1,876	)		734			(6,033	)		7,701
Balance, end of period	$	14,986		$	19,912		$	14,986		$	19,912

The sale or credit loss allowance adjustment 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
	2021			2020			2021			2020
	(in thousands)
Unrealized gains on debt    securities, net of tax	$	331		$	737		$	2,307		$	780		Net realized gains (losses)    on investments
		331			737			2,307			780		Income before income taxes
Unrealized gains on debt    securities, net of tax		(69	)		(155	)		(484	)		(164	)	Income tax expense
	$	262		$	582		$	1,823		$	616		Net income