Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) by component are as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2019 | | | | | Pension Plans | | | | Unrealized Gains (Losses) on Securities | | Unrealized Gains (Losses) on Derivatives | | Net Prior Service (Cost) Credit | | Net Gain (Loss) | | Total | Beginning balance, net of tax | $ | 5,901 |
| | $ | 4,153 |
| | $ | (140 | ) | | $ | (25,687 | ) | | $ | (15,773 | ) | Other comprehensive income (loss): | | | | | | | | | | Other comprehensive income (loss) before reclassifications | 32,196 |
| | (5,653 | ) | | — |
| | — |
| | 26,543 |
| Reclassification adjustments included in net income | (336 | ) | | (642 | ) | | (3 | ) | | 651 |
| | (330 | ) | Income tax (expense) benefit | (6,691 | ) | | 1,322 |
| | 1 |
| | (137 | ) | | (5,505 | ) | Net current-period other comprehensive income (loss), net of tax | 25,169 |
| | (4,973 | ) | | (2 | ) | | 514 |
| | 20,708 |
| Ending balance, net of tax | $ | 31,070 |
| | $ | (820 | ) | | $ | (142 | ) | | $ | (25,173 | ) | | $ | 4,935 |
| | | | | | | | | | | | Six Months Ended June 30, 2019 | |
| | | Pension Plans | | | | Unrealized Gains (Losses) on Securities | | Unrealized Gains (Losses) on Derivatives | | Net Prior Service (Cost) Credit | | Net Gain (Loss) | | Total | Beginning balance, net of tax | $ | (31,120 | ) | | $ | 7,146 |
| | $ | (139 | ) | | $ | (26,115 | ) | | $ | (50,228 | ) | Other comprehensive income (loss): | | | | | | | | | | Other comprehensive income (loss) before reclassifications | 78,822 |
| | (8,773 | ) | | — |
| | — |
| | 70,049 |
| Reclassification adjustments included in net income | (101 | ) | | (1,310 | ) | | (4 | ) | | 1,193 |
| | (222 | ) | Income tax (expense) benefit | (16,531 | ) | | 2,117 |
| | 1 |
| | (251 | ) | | (14,664 | ) | Net current-period other comprehensive income (loss), net of tax | 62,190 |
| | (7,966 | ) | | (3 | ) | | 942 |
| | 55,163 |
| Ending balance, net of tax | $ | 31,070 |
| | $ | (820 | ) | | $ | (142 | ) | | $ | (25,173 | ) | | $ | 4,935 |
|
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2018 | | | | | Pension Plans | | | | Unrealized Gains (Losses) on Securities | | Unrealized Gains (Losses) on Derivatives | | Net Prior Service (Cost) Credit | | Net Gain (Loss) | | Total | Beginning balance, net of tax | $ | (35,594 | ) | | $ | 9,652 |
| | $ | (134 | ) | | $ | (25,894 | ) | | $ | (51,970 | ) | Other comprehensive income (loss): | | | | | | | | | | Other comprehensive (loss) income before reclassifications | (10,371 | ) | | 1,725 |
| | — |
| | — |
| | (8,646 | ) | Reclassification adjustments included in net income | 1,584 |
| | (331 | ) | | (2 | ) | | 620 |
| | 1,871 |
| Income tax benefit (expense) | 1,845 |
| | (293 | ) | | 1 |
| | (130 | ) | | 1,423 |
| Net current-period other comprehensive (loss) income, net of tax | (6,942 | ) | | 1,101 |
| | (1 | ) | | 490 |
| | (5,352 | ) | Ending balance, net of tax | $ | (42,536 | ) | | $ | 10,753 |
| | $ | (135 | ) | | $ | (25,404 | ) | | $ | (57,322 | ) | | | | | | | | | | | | Six Months Ended June 30, 2018 | |
| | | Pension Plans | | | | Unrealized Gains (Losses) on Securities | | Unrealized Gains (Losses) on Derivatives | | Net Prior Service (Cost) Credit | | Net Gain (Loss) | | Total | Beginning balance, net of tax | $ | (16,295 | ) | | $ | 6,399 |
| | $ | (133 | ) | | $ | (26,269 | ) | | $ | (36,298 | ) | Cumulative effect of ASU 2016-01 (1) | 85 |
| | — |
| | — |
| | — |
| | 85 |
| Adjusted beginning balance, net of tax | (16,210 | ) | | 6,399 |
| | (133 | ) | | (26,269 | ) | | (36,213 | ) | Other comprehensive income (loss): | | | | | | | | | | Other comprehensive (loss) income before reclassifications | (35,872 | ) | | 5,970 |
| | — |
| | — |
| | (29,902 | ) | Reclassification adjustments included in net income | 2,549 |
| | (458 | ) | | (4 | ) | | 1,095 |
| | 3,182 |
| Income tax benefit (expense) | 6,997 |
| | (1,158 | ) | | 2 |
| | (230 | ) | | 5,611 |
| Net current-period other comprehensive (loss) income, net of tax | (26,326 | ) | | 4,354 |
| | (2 | ) | | 865 |
| | (21,109 | ) | Ending balance, net of tax | $ | (42,536 | ) | | $ | 10,753 |
| | $ | (135 | ) | | $ | (25,404 | ) | | $ | (57,322 | ) |
| | (1) | The Company adopted ASU 2016-01 on January 1, 2018. This amount includes a reclassification for the cumulative adjustment to retained earnings of $107,000 ($85,000, net of tax). |
The reclassification adjustments out of accumulated other comprehensive income (loss) included in net income are presented below (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2019 | | 2018 | | 2019 | | 2018 | | | | | | | | | Unrealized losses on securities transferred: | | | | | | | | Amortization of unrealized losses (1) | $ | (80 | ) | | $ | (1,252 | ) | | $ | (571 | ) | | $ | (1,390 | ) | Tax benefit | 17 |
| | 263 |
| | 120 |
| | 292 |
| Net of tax | (63 | ) | | (989 | ) | | (451 | ) | | (1,098 | ) | | | | | | | | | Unrealized gains and losses on available for sale securities: | | | | | | | | Realized net gain (loss) on sale of securities (2) | 416 |
| | (332 | ) | | 672 |
| | (1,159 | ) | Tax (expense) benefit | (87 | ) | | 70 |
| | (141 | ) | | 243 |
| Net of tax | 329 |
| | (262 | ) | | 531 |
| | (916 | ) | | | | | | | | | Derivatives: | | | | | | | | Realized net gain on interest rate swap derivatives (3) | 621 |
| | 309 |
| | 1,267 |
| | 415 |
| Tax expense | (130 | ) | | (65 | ) | | (266 | ) | | (87 | ) | Net of tax | 491 |
| | 244 |
| | 1,001 |
| | 328 |
| | | | | | | | | Amortization of unrealized gains on terminated interest rate swap derivatives (3) | 21 |
| | 22 |
| | 43 |
| | 43 |
| Tax expense | (4 | ) | | (5 | ) | | (9 | ) | | (9 | ) | Net of tax | 17 |
| | 17 |
| | 34 |
| | 34 |
| | | | | | | | | Amortization of pension plan: | | | | | | | | Net actuarial loss (4) | (651 | ) | | (620 | ) | | (1,193 | ) | | (1,095 | ) | Prior service credit (4) | 3 |
| | 2 |
| | 4 |
| | 4 |
| Total before tax | (648 | ) | | (618 | ) | | (1,189 | ) | | (1,091 | ) | Tax benefit | 136 |
| | 129 |
| | 250 |
| | 228 |
| Net of tax | (512 | ) | | (489 | ) | | (939 | ) | | (863 | ) | Total reclassifications for the period, net of tax | $ | 262 |
| | $ | (1,479 | ) | | $ | 176 |
| | $ | (2,515 | ) |
(1) Included in interest income on the consolidated statements of income. (2) Listed as net gain (loss) on sale of securities available for sale on the consolidated statements of income. | | (3) | Included in interest expense for Federal Home Loan Bank of Dallas (“FHLB”) borrowings on the consolidated statements of income. |
(4) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 9 - Employee Benefit Plans.”
|