Note 7 - Other Comprehensive Income (Loss)

The following tables illustrate activity within the balances in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2018 and 2017.



Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes)
(in thousands)	Net unrealized gains (losses) on cash flow hedges			Net unrealized gains (losses) on investment securities available for sale			Post-retirement unfunded health benefit			Total
Balance at December 31, 2017	$	(12,137	)	$	(43,470	)	$	853		$	(54,754	)
Other comprehensive income before reclassifications	—			(45,531		)	—			(45,531		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			(21		)	(21		)
Net current period other comprehensive income	—			(45,531		)	(21		)	(45,552		)
Reclassification from adoption of ASU 2018-02	—			(7,763		)	175			(7,588		)
Cumulative-effect adjustment from adoption of ASU 2016-01	—			117			—			117
Balance as of March 31, 2018	$	(12,137	)	$	(96,647	)	$	1,007		$	(107,777	)



Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes)
(in thousands)	Net unrealized gains (losses) on cash flow hedges			Net unrealized gains (losses) on investment securities available for sale			Post-retirement unfunded health benefit			Total
Balance at December 31, 2016	$	(12,217	)	$	(44,324	)	$	882		$	(55,659	)
Other comprehensive income before reclassifications	—			5,596			—			5,596
Amounts reclassified from accumulated other comprehensive income (loss)	40			(4,716		)	(12		)	(4,688		)
Net current period other comprehensive income	40			880			(12		)	908
Balance as of March 31, 2017	$	(12,177	)	$	(43,444	)	$	870		$	(54,751	)

In accordance with ASC 740-20-45-11(b), a deferred tax asset valuation allowance associated with unrealized gains and losses not recognized in income is charged directly to other comprehensive income (loss). During the years 2010 and 2011, Synovus recorded a deferred tax asset valuation allowance associated with net unrealized losses not recognized in income directly to other comprehensive income (loss) by applying the portfolio approach for allocation of the valuation allowance. Synovus has consistently applied the portfolio approach which treats derivative instruments and available for sale securities as a single portfolio. As of March 31, 2018, the ending balance in net unrealized gains (losses) on cash flow hedges and net unrealized gains (losses) on investment securities available for sale includes unrealized losses of $12.1 million and $13.3 million, respectively, related to the residual tax effects remaining in OCI due to the previously established deferred tax asset valuation allowance. Under the portfolio approach, these unrealized losses are realized at the time the entire portfolio is sold or disposed.



Reclassifications out of Accumulated Other Comprehensive Income (Loss)
Details About Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Statement Where Net Income is Presented
	For the Three Months Ended March 31,
	2018			2017
Net unrealized gains (losses) on cash flow hedges:
Amortization of deferred losses	$	—		$	(65	)	Interest expense
	—			25			Income tax (expense) benefit
	$	—		$	(40	)	Reclassifications, net of income taxes

Net unrealized gains on investment securities available for sale:
Realized gains on sale of securities	$	—		$	7,668		Investment securities gains, net
	—			(2,952		)	Income tax (expense) benefit
	$	—		$	4,716		Reclassifications, net of income taxes
Post-retirement unfunded health benefit:
Amortization of actuarial gains	$	34		$	20		Salaries and other personnel expense
	(13		)	(8		)	Income tax (expense) benefit
	$	21		$	12		Reclassifications, net of income taxes