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Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
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.”