Note 2 - Comprehensive Income

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) Note [Text Block]

2 - COMPREHENSIVE INCOME

Comprehensive income includes net income and other comprehensive income. Other comprehensive income includes revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but excluded from net income. Other comprehensive income for the Corporation consists of unrealized holding gains or losses on available-for-sale securities and changes in the funded status of the Bank’s defined benefit pension plan, both net of related income taxes. Accumulated other comprehensive income is recognized as a separate component of stockholders’ equity.

The components of other comprehensive income and the related tax effects are as follows:

	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2015			2014			2015		2014
	(in thousands)
Change in net unrealized holding gains on available-for-sale securities:
Change arising during the period	$	(592	)	$	17,881		$	5,144	$	99
Reclassification adjustment for gains included in net income (1)		(1,125	)		(22	)		-		(1	)
Change in net unrealized holding gains on available-for-sale securities		(1,717	)		17,859			5,144		98
Tax effect		(706	)		7,295			2,119		40
		(1,011	)		10,564			3,025		58
Change in funded status of pension plan:
Amortization of prior service cost included in pension expense (2)		-			11			-		4
Tax effect		(37	)		(13	)		-		2
		37			24			-		2
Other comprehensive income (loss)	$	(974	)	$	10,588		$	3,025	$	60

(1) Reclassification adjustment represents net realized gains arising from the sale of available-for-sale securities. The net realized gains are included in the consolidated statements of income in the line item, “Net gains on sales of securities.” See “Note 3 – Investment Securities” for the income tax expense related to the net realized gains.

(2) Represents the amortization into expense of prior service cost relating to the Bank’s defined benefit pension plan. This item is included in net periodic pension cost (see Note 6) and in the consolidated statements of income in the line item, “Employee benefits.” The related income tax expense is included in the consolidated statements of income in the line item, “Income tax expense.”

The following sets forth the components of accumulated other comprehensive income, net of tax:

				Current
	Balance			Period			Balance
	12/31/14			Change			9/30/15
	(in thousands)
Unrealized holding gains on available-for-sale securities	$	13,460		$	(1,011	)	$	12,449
Unrealized actuarial losses and prior service costs on pension plan		(2,675	)		37			(2,638	)
Accumulated other comprehensive income, net of tax	$	10,785		$	(974	)	$	9,811