Note 7. Stockholders' Equity and Earnings per Share

STOCKHOLDERS' EQUITY – ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014				Affected Line Item on Consolidated Statements of Income
	(in thousands)
Available-for-sale securities
Realized losses on sales of securities		$	0		$	0		$	0		$	(7	)	Gain (loss) on sale of available-for-sale securities, net
Tax benefit			0			0			0			(2	)	Income tax expense
		$	0		$	0		$	0		$	(5	)	Net of tax

The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:

	Unrealized Gains (Losses) on Securities			Unrealized Losses on Securities Transferred to Held-to-Maturity			Defined Benefit Pension Plans			Accumulated Other Comprehensive Loss
	(in thousands)
Nine Months Ended September 30, 2015

Balance at beginning of period	$	(78	)	$	(3,386	)	$	(2,429	)	$	(5,893	)
Net change for the period		(209	)		471			0			262
Balance at end of period	$	(287	)	$	(2,915	)	$	(2,429	)	$	(5,631	)


Nine Months Ended September 30, 2014

Balance at beginning of period	$	(5,317	)	$	(3,937	)	$	(1,548	)	$	(10,802	)
Net change for the period		3,928			411			0			4,339
Balance at end of period	$	(1,389	)	$	(3,526	)	$	(1,548	)	$	(6,463	)

The following table presents the change in each component of accumulated other comprehensive loss on a pre-tax and after-tax basis for the periods indicated.

	Nine Months Ended September 30, 2015
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized losses on available-for-sale securities		$	(316	)		$	(107	)		$	(209	)

Amortization of unrealized loss on securities transferred to held-to-maturity			714				243				471

Total change in accumulated other comprehensive loss		$	398			$	136			$	262

	Nine Months Ended September 30, 2014
	Pretax			Tax			Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities
Unrealized holding gains arising during the period	$	5,944		$	2,021		$	3,923
Less reclassification adjustment for losses recognized in income		(7	)		(2	)		(5	)
Net unrealized gains on securities		5,951			2,023			3,928

Market adjustment on securities transferred to held-to-maturity
Amortization		622			211			411

Total change in accumulated other comprehensive loss	$	6,573		$	2,234		$	4,339

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options. The Company did not include an average of 77 thousand and 134 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for the first nine months of 2015 and 2014, respectively, because they were antidilutive. Antidilutive shares were 76 and 84 for the third quarters of 2015 and 2014, respectively.