CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2019

CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

18. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, transition costs, and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive loss are presented, net of tax, as a component of stockholders’ equity. Amounts that are reclassified out of accumulated other comprehensive loss are recorded on the unaudited Consolidated Statement of Income either as a gain or loss.

Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated:


(Dollars in thousands)	Net change in investment securities available for sale		Net change in investment securities held to maturity		Net change in defined benefit plan		Net change in fair value of derivatives used for cash flow hedges		Total
Balance, June 30, 2019	$	22,244	$	602	$	659	$	(817)	$	22,688
Other comprehensive income (loss) before reclassifications	9,268		(1)		(8)		368		9,627
Less: Amounts reclassified from accumulated other comprehensive (loss) income	—		(69)		(27)		—		(96)
Net current-period other comprehensive income (loss)	9,268		(70)		(35)		368		9,531
Balance, September 30, 2019	$	31,512	$	532	$	624	$	(449)	$	32,219


Balance, June 30, 2018	$	(24,186)	$	987	$	894	$	(3,408)	$	(25,713)
Other comprehensive (loss) income before reclassifications	(6,042)		—		7		(109)		(6,144)
Less: Amounts reclassified from accumulated other comprehensive (loss) income	—		(107)		(37)		—		(144)
Net current-period other comprehensive (loss) income	(6,042)		(107)		(30)		(109)		(6,288)
Balance, September 30, 2018	$	(30,228)	$	880	$	864	$	(3,517)	$	(32,001)


(Dollars in thousands)	Net change in investment securities available for sale		Net change in investment securities held to maturity		Net change in defined benefit plan		Net change in fair value of derivatives used for cash flow hedges		Total
Balance, December 31, 2018	$	(14,553)	$	779	$	834	$	(2,454)	$	(15,394)
Other comprehensive income (loss) before reclassifications	46,124		(2)		(131)		2,005		47,996
Less: Amounts reclassified from accumulated other comprehensive (loss) income	(59)		(245)		(79)		—		(383)
Net current-period other comprehensive income (loss)	46,065		(247)		(210)		2,005		47,613
Balance, September 30, 2019	$	31,512	$	532	$	624	$	(449)	$	32,219


Balance, December 31, 2017	$	(7,842)	$	1,223	$	865	$	(2,398)	$	(8,152)
Other comprehensive (loss) income before reclassifications	(22,370)		—		15		(1,119)		(23,474)
Less: Amounts reclassified from accumulated other comprehensive (loss) income	(16)		(343)		(16)		—		(375)
Net current-period other comprehensive (loss) income	(22,386)		(343)		(1)		(1,119)		(23,849)
Balance, September 30, 2018	$	(30,228)	$	880	$	864	$	(3,517)	$	(32,001)

The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below:


	Three Months Ended September 30,					Affected line item in unaudited Consolidated Statements of Income
(Dollars in thousands)	2019		2018




Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(91)	$	(142)	Interest and dividends on investment securities
Income taxes	22		35		Income tax provision
Net of tax	$	(69)	$	(107)
Amortization of Defined Benefit Pension items:
Prior service costs (credits) ⁽¹⁾	$	(19)	$	(19)

Actuarial gains	(16)		(11)
Total before tax	$	(35)	$	(30)	Salaries, benefits and other compensation
Income taxes	8		(7)		Income tax provision
Net of tax	(27)		(37)
Total reclassifications	$	(96)	$	(144)


	Nine Months Ended September 30,					Affected line item in unaudited Consolidated Statements of Income
(Dollars in thousands)	2019		2018
Securities available for sale:
Realized gains on securities transactions	$	(78)	$	(21)	Securities gains, net
Income taxes	19		5		Income tax provision
Net of tax	$	(59)	$	(16)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(322)	$	(451)	Interest and dividends on investment securities
Income taxes	77		108		Income tax provision
Net of tax	$	(245)	$	(343)
Amortization of Defined Benefit Pension items:
Prior service costs (credits) ⁽¹⁾	$	(57)	$	21

Actuarial gains	(47)		(34)
Total before tax	$	(104)	$	(13)	Salaries, benefits and other compensation
Income taxes	25		(3)		Income tax provision
Net of tax	(79)		(16)
Total reclassifications	$	(383)	$	(375)

⁽¹⁾Prior service costs balance for the nine months ended September 30, 2018 includes a tax true-up adjustment of $0.1 million from March 31, 2018. Note that the tax true-up was made to the deferred tax asset with an offset to AOCI and does not affect the actual net periodic benefit costs of the pension plan.