STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2012

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 9.               STOCKHOLDERS’ EQUITY

The Bank’s actual and required capital ratios were as follows:

					FDIC Minimum
	Septemeber 30, 2012		December 31, 2011		to be Well Capitalized
Total capital to risk weighted assets	11.2	%	11.3	%	10.0	%
Tier 1 capital to risk weighted assets	10.1		10.2		6.0
Tier 1 capital to average assets	7.7		8.4		5.0

At each date shown, Berkshire Bank met the conditions to be classified as “well capitalized” under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above.

Accumulated other comprehensive income

Components of accumulated other comprehensive loss are as follows:

(In thousands)	September 30, 2012			December 31, 2011
Net unrealized holding gain (loss) on AFS securities	$	11,089		$	6,298
Net loss on effective cash flow hedging derivatives	(12,102		)	(8,882		)
Net loss on terminated swap	(4,415		)	(5,121		)
Net unrealized holding gain (loss) on pension plans	(932		)	(676		)
Tax effects	2,898			3,496
Accumulated other comprehensive loss	$	(3,462	)	$	(4,885	)

The Company’s accumulated other comprehensive loss totaled $3.5 million at September 30, 2012.  Of this loss, $16.5 million was attributable to accumulated losses on cash flow hedges and terminated swaps, net of deferred tax benefits of $7.0 million; $11.1 million was attributable to accumulated gains on available-for-sale securities, net of deferred tax expenses of $4.1 million; and $0.9 million was attributable to accumulated losses on pensions.

The Company’s accumulated other comprehensive loss totaled $4.9 million at December 31, 2011.  Of this loss, $14.0 million was attributable to accumulated losses on cash flow hedges and terminated swaps, net of deferred tax benefits of $5.8 million; $6.3 million was attributable to accumulated gains on available-for-sale securities, net of deferred tax expenses of $2.3 million; and $0.7 million was attributable to accumulated losses on pensions.