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 March 31,				Affected Line Item on
	2016		2015		Consolidated Statement of Income
Available-for-sale securities
Realized gains on sales of securities	$	509	$	0	Gain on sale of available-for-sale securities, net
Tax expense		173		0	Income tax expense
	$	336	$	0	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)
Three Months Ended March 31, 2016

Balance at beginning of period	$	(576	)	$	0		$	(2,586	)	$	(3,162	)
Net change for the period		515			0			0			515
Balance at end of period	$	(61	)	$	0		$	(2,586	)	$	(2,647	)


Three Months Ended March 31, 2015

Balance at beginning of period	$	(78	)	$	(3,386	)	$	(2,429	)	$	(5,893	)
Net change for the period		91			141			0			232
Balance at end of period	$	13		$	(3,245	)	$	(2,429	)	$	(5,661	)

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.

	Three Months Ended March 31, 2016
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		$	1,289			$	438			$	851
Reclassification adjustment for gains recognized in income			(509	)			(173	)			(336	)
Net unrealized gains on securities			780				265				515

Total change in accumulated other comprehensive loss		$	780			$	265			$	515

	Three Months Ended March 31, 2015
	Pretax			Tax			Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		$	138		$	47		$	91

Unrealized losses on securities transferred from available-for-sale to held-to-maturity:
Amortization			214			73			141

Net change		$	352		$	120		$	232

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 70 thousand and 78 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for the first three months of 2016 and 2015, respectively, because they were antidilutive.