CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME

6 Months Ended

Jun. 30, 2020

CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME

17. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income 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 income are presented, net of tax, as a component of stockholders’ equity. Amounts that are reclassified out of accumulated other comprehensive income are recorded on the unaudited Consolidated Statement of Income either as a gain or loss.

Changes to accumulated other comprehensive income 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, March 31, 2020	$	72,436	$	403	$	(3,313)	$	1,008	$	70,534
Other comprehensive income (loss) before reclassifications	3,703		—		7		(25)		3,685
Less: Amounts reclassified from accumulated other comprehensive income (loss)	(1,450)		(57)		179		(111)		(1,439)
Net current-period other comprehensive income (loss)	2,253		(57)		186		(136)		2,246
Balance, June 30, 2020	$	74,689	$	346	$	(3,127)	$	872	$	72,780

Balance, March 31, 2019	$	2,701	$	686	$	693	$	(1,824)	$	2,256
Other comprehensive income before reclassifications	19,591		—		10		1,007		20,608
Less: Amounts reclassified from accumulated other comprehensive income	(48)		(84)		(44)		—		(176)
Net current-period other comprehensive income (loss)	19,543		(84)		(34)		1,007		20,432
Balance, June 30, 2019	$	22,244	$	602	$	659	$	(817)	$	22,688


(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, 2019	$	26,927	$	468	$	(3,317)	$	(577)	$	23,501
Other comprehensive income before reclassifications	49,739		—		43		1,560		51,342
Less: Amounts reclassified from accumulated other comprehensive income	(1,977)		(122)		147		(111)		(2,063)
Net current-period other comprehensive income (loss)	47,762		(122)		190		1,449		49,279
Balance, June 30, 2020	$	74,689	$	346	$	(3,127)	$	872	$	72,780

Balance, December 31, 2018	$	(14,553)	$	779	$	834	$	(2,454)	$	(15,394)
Other comprehensive income (loss) before reclassifications	36,856		(2)		(89)		1,637		38,402
Less: Amounts reclassified from accumulated other comprehensive income (loss)	(59)		(175)		(86)		—		(320)
Net current-period other comprehensive income (loss)	36,797		(177)		(175)		1,637		38,082
Balance, June 30, 2019	$	22,244	$	602	$	659	$	(817)	$	22,688

The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income as shown in the tables below:


	Three Months Ended June 30,					Affected line item in unaudited Consolidated Statements of Income
(Dollars in thousands)	2020		2019
Securities available for sale:
Realized gains on securities transactions	$	(1,908)	$	(63)	Securities gains, net
Income taxes	458		15		Income tax provision
Net of tax	$	(1,450)	$	(48)
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	$	(75)	$	(111)	Interest and dividends on investment securities
Income taxes	18		27		Income tax provision
Net of tax	$	(57)	$	(84)
Amortization of defined benefit pension plan-related items:
Prior service credits	$	(19)	$	(19)

Actuarial gains	(24)		(16)
Total before tax	$	(43)	$	(35)	Salaries, benefits and other compensation
Income taxes	10		(9)		Income tax provision
Net of tax	$	(33)	$	(44)
Defined benefit pension plan settlement:
Realized losses on plan settlement	$	279	$	—	Other operating expense
Income taxes	(67)		—		Income tax provision
Net of tax	$	212	$	—
Net unrealized gains on terminated cash flow hedges:
Amortization of net unrealized gains to income during the period	$	(146)	$	—	Interest and fees on loans and leases
Income taxes	35		—		Income tax provision
Net of tax	$	(111)	$	—
Total reclassifications	$	(1,439)	$	(176)


	Six Months Ended					Affected line item in unaudited Consolidated Statements of Operations
	June 30,
	2020		2019
Securities available-for-sale:
Realized gains on securities transactions	$	(2,601)	$	(78)	Securities gains, net
Income taxes	624		19		Income tax provision
Net of tax	$	(1,977)	$	(59)
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	$	(160)	$	(231)	Interest and dividends on investment securities
Income taxes	38		56		Income tax provision
Net of tax	$	(122)	$	(175)
Amortization of defined benefit pension plan-related items:
Prior service credits	$	(38)	$	(38)

Actuarial gains	(48)		(31)
Total before tax	$	(86)	$	(69)	Salaries, benefits and other compensation
Income taxes	21		(17)		Income tax provision
Net of tax	$	(65)	$	(86)
Defined benefit pension plan settlement:
Realized losses on plan settlement	$	279	$	—	Other operating expense
Income taxes	(67)		—		Income tax provision
Net of tax	$	212	$	—
Net unrealized gains on terminated cash flow hedges:
Amortization of net unrealized gains to income during the period	$	(146)	$	—	Interest and fees on loans and leases
Income taxes	35		—		Income tax provision
Net of tax	$	(111)	$	—
Total reclassifications	$	(2,063)	$	(320)