Note 11 – Other Comprehensive (Loss) Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive (loss) income.

The components of other comprehensive (loss) income both before tax and net of tax are as follows:



	Three Months Ended June 30,
	2018						2017

	(In Thousands)

	Before		Tax		Net of		Before		Tax		Net of
	Tax		Effect		Tax		Tax		Effect		Tax
Change in accumulated other comprehensive (loss) income:
Unrealized holding (losses) gains on securities available for sale	$	(367)	$	77	$	(290)	$	862	$	(294)	$	568
Reclassification adjustments for gains on securities transactions included in net income (A),(B)		-		-		-		-		-		-
Total other comprehensive (loss) income	$	(367)	$	77	$	(290)	$	862	$	(294)	$	568



	Six Months Ended June 30,
	2018						2017

	(In Thousands)
	Before		Tax		Net of		Before		Tax		Net of
	Tax		Effect		Tax		Tax		Effect		Tax
Change in accumulated other comprehensive (loss) income:
Unrealized holding (losses) gains on securities available for sale	$	(1,999)	$	420	$	(1,579)	$	1,350	$	(460)	$	890
Reclassification adjustments for gains on securities transactions included in net income (A),(B)		-		-		-		-		-		-
Total other comprehensive (loss) income	$	(1,999)	$	420	$	(1,579)	$	1,350	$	(460)	$	890

Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.

Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.

There were no realized gains on securities available for sale for the three and six months ended June 30, 2018 and 2017.

A summary of the accumulated other comprehensive (loss) income net of tax, is as follows:



	Securities
	Available
	for Sale
Three Months Ended June 30, 2018 and 2017	(In Thousands)
Balance March 31, 2018	$	(1,270)
Other comprehensive loss before reclassifications		(290)
Amounts reclassified from accumulated other comprehensive income		-
Net other comprehensive loss during the period		(290)
Balance June 30, 2018	$	(1,560)

Balance March 31, 2017	$	298
Other comprehensive income before reclassifications		568
Amounts reclassified from accumulated other comprehensive income		-
Net other comprehensive income during the period		568
Balance June 30, 2017	$	866



Six Months Ended June 30, 2018 and 2017
Balance January 1, 2018	$	19
Other comprehensive loss before reclassifications		(1,579)
Amounts reclassified from accumulated other comprehensive income		-
Net other comprehensive loss during the period		(1,579)
Balance June 30, 2018	$	(1,560)

Balance January 1, 2017	$	(24)
Other comprehensive income before reclassifications		890
Amounts reclassified from accumulated other comprehensive income		-
Net other comprehensive income during the period		890
Balance June 30, 2017	$	866