Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

NOTE 9 – OTHER COMPREHENSIVE INCOME (LOSS)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the shareholders' equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income.

The components of other comprehensive income (loss) and related tax effects are as follows for the three months ended March 31, 2024 and 2023:


	Three months ended
	March 31,
	2024			2023
	(in thousands)

Unrealized losses on securities:
Net unrealized holding losses on available-for-sale securities	$	(3	)	$	(16	)
Reclassification adjustment for realized gains in net income		—			—
		(3	)		(16	)
Income tax benefit		—			4
Net-of-tax amount		(3	)		(12	)

Net change in fair value of cash flow hedges
Change in fair value of cash flow hedges	$	784		$	—
Reclassification adjustment for cash flow hedge gains into net income		(151	)		—
		633			—
Income expense benefit		(177	)		—
Net-of-tax amount		456			—

Other comprehensive income (loss), net of tax	$	453		$	(12	)

Accumulated other comprehensive income as of March 31, 2024 and December 31, 2023 consists of unrecognized benefit costs, net of taxes, unrealized holding gains on securities available for sale, net of tax, and fair value of cash flow hedges, net of tax as follows:


	As of March 31, 2024		As of December 31, 2023
	(in thousands)
Net unrealized holding loss on securities available-for-sale, net of tax	$	—	$	3
Unrecognized SERP gain, net of tax		56		56
Unrecognized DFCP gain, net of tax		70		70
Fair value of cash flow hedges, net of tax		456		—

Accumulated other comprehensive income	$	582	$	129