Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of changes in accumulated other comprehensive income (loss) (‘‘AOCIL’’), net of tax during the years ended December 31 follows:

	Unrealized Gains (Losses) on Securities AFS		Unrealized Losses on Securities Transferred to Securities HTM (1)		Dispropor- tionate Tax Effects from Securities AFS		Unrealized Losses on Cash Flow Hedges		Total
	(In thousands)
2022
Balances at beginning of period	$	6,299	$	—	$	(5,798)	$	—	$	501
Other comprehensive loss before reclassifications	(75,258)		(18,223)		—		—		(93,481)
Amounts reclassified from AOCIL	217		—		—		—		217
Net current period other comprehensive loss	(75,041)		(18,223)		—		—		(93,264)
Balances at end of period	$	(68,742)	$	(18,223)	$	(5,798)	$	—	$	(92,763)
2021
Balances at beginning of period	$	15,822	$	—	$	(5,798)	$	—	$	10,024
Other comprehensive loss before reclassifications	(8,408)		—		—		—		(8,408)
Amounts reclassified from AOCIL	(1,115)		—		—		—		(1,115)
Net current period other comprehensive loss	(9,523)		—		—		—		(9,523)
Balances at end of period	$	6,299	$	—	$	(5,798)	$	—	$	501
2020
Balances at beginning of period	$	3,739	$	—	$	(5,798)	$	(1,727)	$	(3,786)
Other comprehensive income (loss) before reclassifications	12,294		—		—		(279)		12,015
Amounts reclassified from AOCIL	(211)		—		—		2,006		1,795
Net current period other comprehensive income	12,083		—		—		1,727		13,810
Balances at end of period	$	15,822	$	—	$	(5,798)	$	—	$	10,024

(1)Represents the remaining unrealized loss to be accreted on securities that were transferred from AFS to HTM on April 1, 2022.

The disproportionate tax effects from securities AFS arose primarily due to tax effects of other comprehensive income (‘‘OCI’’) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. Release of material disproportionate tax effects

from other comprehensive income to earnings is done by the portfolio method whereby the effects will remain in AOCIL as long as we carry a more than inconsequential portfolio of securities AFS.

A summary of reclassifications out of each component of AOCIL for the years ended December 31 follows:

AOCIL Component	Reclassified From AOCIL		Affected Line Item in Consolidated Statements of Operations
	(In thousands)
2022
Unrealized gains (losses) on securities available for sale	$	(275)	Net gains (losses) on securities available for sale
	—		Net impairment loss recognized in earnings
	(275)		Total reclassifications before tax
	(58)		Income tax expense
	$	(217)	Reclassifications, net of tax
2021
Unrealized gains (losses) on securities available for sale	$	1,411	Net gains (losses) on securities available for sale
	—		Net impairment loss recognized in earnings
	1,411		Total reclassifications before tax
	296		Income tax expense
	$	1,115	Reclassifications, net of tax
2020
Unrealized gains (losses) on securities available for sale	$	267	Net gains (losses) on securities available for sale
	—		Net impairment loss recognized in earnings
	267		Total reclassifications before tax
	56		Income tax expense
	$	211	Reclassifications, net of tax
Unrealized gains (losses) on cash flow hedges	$	2,539	Interest expense
	533		Income tax expense
	$	2,006	Reclassification, net of tax
	$	(1,795)	Total reclassifications for the period, net of tax