| Comprehensive Income (Loss) Note [Text Block] |
2 - COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) includes net income and other comprehensive income (loss) (“OCI”). OCI includes revenues, expenses, gains and losses that under GAAP are included in comprehensive income but excluded from net income. OCI for the Corporation consists of unrealized holding gains or losses on available-for-sale (“AFS”) securities, derivative instruments designated as cash flow hedges and changes in the funded status of the Bank’s defined benefit pension plan, all net of related income taxes. Accumulated OCI is recognized as a separate component of stockholders’ equity.
The following table sets forth the components of accumulated OCI, net of tax.
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Current |
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Balance |
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Period |
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Balance |
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| (in thousands) |
|
12/31/2022 |
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|
Change |
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|
9/30/2023 |
|
| Unrealized holding loss on available-for-sale securities |
|
$ |
(56,055 |
) |
|
$ |
(16,810 |
) |
|
$ |
(72,865 |
) |
| Unrealized actuarial loss on pension plan |
|
|
(8,712 |
) |
|
|
529 |
|
|
|
(8,183 |
) |
| Accumulated other comprehensive loss, net of tax |
|
$ |
(64,767 |
) |
|
$ |
(16,281 |
) |
|
$ |
(81,048 |
) |
The components of OCI and the related tax effects are as follows:
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|
Nine Months Ended |
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|
Three Months Ended |
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| |
|
September 30, |
|
|
September 30, |
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| (in thousands) |
|
2023 |
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|
2022 |
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|
2023 |
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|
2022 |
|
| Change in net unrealized holding gains or losses on available-for-sale securities: |
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|
|
|
|
|
|
|
|
|
|
|
|
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| Change arising during the period |
|
$ |
(27,628 |
) |
|
$ |
(96,238 |
) |
|
$ |
(18,942 |
) |
|
$ |
(31,021 |
) |
| Reclassification adjustment for losses included in net income (1) |
|
|
3,489 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
(24,139 |
) |
|
|
(96,238 |
) |
|
|
(18,942 |
) |
|
|
(31,021 |
) |
| Tax effect |
|
|
(7,329 |
) |
|
|
(29,646 |
) |
|
|
(5,816 |
) |
|
|
(9,556 |
) |
| |
|
|
(16,810 |
) |
|
|
(66,592 |
) |
|
|
(13,126 |
) |
|
|
(21,465 |
) |
| Change in funded status of pension plan: |
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|
|
|
|
|
|
|
|
|
|
|
|
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| Amortization of net actuarial loss included in pension expense (2) |
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|
763 |
|
|
|
— |
|
|
|
254 |
|
|
|
— |
|
| Tax effect |
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|
234 |
|
|
|
— |
|
|
|
78 |
|
|
|
— |
|
| |
|
|
529 |
|
|
|
— |
|
|
|
176 |
|
|
|
— |
|
| Change in unrealized loss on derivative instrument: |
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|
|
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|
|
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| Amount of gain during the period |
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|
— |
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|
1,324 |
|
|
|
— |
|
|
|
— |
|
| Reclassification adjustment for net interest expense included in net income (3) |
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|
— |
|
|
|
426 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
— |
|
|
|
1,750 |
|
|
|
— |
|
|
|
— |
|
| Tax effect |
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|
— |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
— |
|
|
|
1,212 |
|
|
|
— |
|
|
|
— |
|
| Other comprehensive gain (loss) |
|
$ |
(16,281 |
) |
|
$ |
(65,380 |
) |
|
$ |
(12,950 |
) |
|
$ |
(21,465 |
) |
| (1) |
Represents net realized losses arising from the sale of AFS securities, included in the consolidated statements of income in the line item “net loss on sales of securities.” See “Note 3 – Investment Securities” for the income tax benefit related to these net realized losses, included in the consolidated statements of income in the line item “income tax expense.” |
| (2) |
Represents the amortization of net actuarial loss relating to the Corporation’s defined benefit pension plan. This item is a component of net periodic pension cost and is included in the consolidated statements of income in the line item “salaries and employee benefits.” |
| (3) |
Represents the net interest expense recorded on derivative transactions and included in the consolidated statements of income under “interest expense.” |
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