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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015			Affected Line Item on Consolidated Statements of Income
	(in thousands)
Available-for-sale securities
Realized gains (losses) on sales of securities		$	$6		$	$0		$	$515		$	$0	Gain on sale of available-for-sale securities, net
Tax effect			2			0			175			0	Income tax expense
		$	$4		$	$0		$	$340		$	$0

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)
Six Months Ended June 30, 2016

Balance at beginning of period	$	(576	)	$	0		$	(2,586	)	$	(3,162	)
Net change for the period		2,176			0			0			2,176
Balance at end of period	$	1,600		$	0		$	(2,586	)	$	(986	)


Six Months Ended June 30, 2015

Balance at beginning of period	$	(78	)	$	(3,386	)	$	(2,429	)	$	(5,893	)
Net change for the period		(911	)		311			0			(600	)
Balance at end of period	$	(989	)	$	(3,075	)	$	(2,429	)	$	(6,493	)

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.

	Six Months Ended June 30, 2016
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		$	3,812			$	1,296			$	2,516
Reclassification adjustment for gains recognized in income			(515	)			(175	)			(340	)
Net unrealized gains on securities			3,297				1,121				2,176

Total change in accumulated other comprehensive loss		$	3,297			$	1,121			$	2,176

	Six Months Ended June 30, 2015
	Pretax				Tax				Net-of-Tax
	(in thousands)

Unrealized losses on available-for-sale securities:
Unrealized holding losses arising during the period		$	(1,381	)		$	(470	)		$	(911	)

Unrealized losses on securities transferred from available-for-sale to held-to-maturity:
Amortization			471				160				311

Net change		$	(910	)		$	(310	)		$	(600	)

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 69 thousand and 77 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for the first six months of 2016 and 2015, respectively, because they were antidilutive. Antidilutive shares were 69 thousand and 76 thousand for the second quarters of 2016 and 2015, respectively.