Accumulated Other Comprehensive Loss ("AOCL")

6 Months Ended

Jun. 30, 2017

Accumulated Other Comprehensive Loss ("AOCL") [Abstract]

Accumulated Other Comprehensive Loss ("AOCL")

14.  Accumulated Other Comprehensive Loss (“AOCL”)

A summary of changes in AOCL follows:

	Unrealized Gains (Losses) on Securities Available for Sale			Dispropor- tionate Tax Effects from Securities Available for Sale			Total
	(In thousands)
For the three months ended June 30,
2017
Balances at beginning of period	$	(738	)	$	(5,798	)	$	(6,536	)
Other comprehensive income before reclassifications		2,731			-			2,731
Amounts reclassified from AOCL		(7	)		-			(7	)
Net current period other comprehensive income		2,724			-			2,724
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)
2016
Balances at beginning of period	$	999		$	(5,798	)	$	(4,799	)
Other comprehensive income before reclassifications		1,588			-			1,588
Amounts reclassified from AOCL		(72	)		-			(72	)
Net current period other comprehensive income		1,516			-			1,516
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)
For the six months ended June 30,
2017
Balances at beginning of period	$	(3,310	)	$	(5,798	)	$	(9,108	)
Cumulative effect of change in accounting		300			-			300
Balances at beginning of period, as adjusted		(3,010	)		(5,798	)		(8,808	)
Other comprehensive income before reclassifications		5,072			-			5,072
Amounts reclassified from AOCL		(76	)		-			(76	)
Net current period other comprehensive income		4,996			-			4,996
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)
2016
Balances at beginning of period	$	(238	)	$	(5,798	)	$	(6,036	)
Other comprehensive income before reclassifications		2,937			-			2,937
Amounts reclassified from AOCL		(184	)		-			(184	)
Net current period other comprehensive income		2,753			-			2,753
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)

We adopted ASU 2017-08 during the first quarter of 2017 using a modified retrospective approach.  As a result, accumulated other comprehensive loss as of January 1, 2017 was adjusted by $0.30 million (see note #2).

The disproportionate tax effects from securities available for sale arose 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.

A summary of reclassifications out of each component of AOCL for the three months ended June 30 follows:

	Amount Reclassified From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	11	Net gains on securities
		-	Net impairment loss recognized in earnings
		11	Total reclassifications before tax
		4	Income tax expense
	$	7	Reclassifications, net of tax
2016
Unrealized gains on securities available for sale
	$	109	Net gains on securities
		-	Net impairment loss recognized in earnings
		109	Total reclassifications before tax
		37	Income tax expense
	$	72	Reclassifications, net of tax

A summary of reclassifications out of each component of AOCL for the six months ended June 30 follows:

	Amount Reclassified  From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	117	Net gains on securities
		-	Net impairment loss recognized in earnings
		117	Total reclassifications before tax
		41	Income tax expense
	$	76	Reclassifications, net of tax
2016
Unrealized gains on securities available for sale
	$	283	Net gains on securities
		-	Net impairment loss recognized in earnings
		283	Total reclassifications before tax
		99	Income tax expense
	$	184	Reclassifications, net of tax