ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the years ended December 31, 2017 and 2016: Change in funded status of retirement obligations Accretion of loss on securities reclassified to held-to- maturity Unrealized (losses) gains on securities available- for-sale and gains included in net income Other-than- temporary impairment accretion on debt securities Unrealized gains on derivatives Total accumulated other comprehensive loss (Dollars in thousands) Balance — December 31, 2016 $ (4,895) (1,988) (12,271) (12,870) 7,424 (24,600) Net change 188 398 (2,113) (2,256) 3,673 (110) Reclassification due to the adoption of ASU No. 2018-02 (933) 70 (6,800) 644 2,390 (4,629) Balance — December 31, 2017 $ (5,640) (1,520) (21,184) (14,482) 13,487 (29,339) Balance — December 31, 2015 $(12,366) (3,080) 1,371 (13,750) — (27,825) Net change 7,471 1,092 (13,642) 880 7,424 3,225 Balance — December 31, 2016 $ (4,895) (1,988) (12,271) (12,870) 7,424 (24,600) The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented. Year Ended December 31, 2017 2016 (In thousands) Reclassification adjustment for gains included in net income Gain on securities transactions, net $(1,275) (2,264) Change in funded status of retirement obligations Adjustment of net obligation (20) 249 Amortization of net loss 479 1,610 Compensation and fringe benefits 459 1,859 Interest expense Reclassification adjustment for unrealized losses on derivatives 4,161 440 Total before tax 3,345 35 Income tax (expense) benefit (1,213) 1,179 Net of tax $ 2,132 (1,144) 19. Recent Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. This update was issued to address a narrow-scope financial reporting issue that arose as a consequence of the change 137