Note 10 – Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2014 and the three-month periods ended March 31, 2015 and June 30, 2015:



(in thousands)	Investment securities- with OTTI AFS		Investment securities- all other AFS			Investment securities- HTM	Cash Flow Hedge		Pension Plan		SERP		Total
Accumulated OCL, net:
Balance - January 1, 2014	$	(7,623)	$	(11,292)	$	0	$	(274)	$	(5,088)	$	64	$	(24,213)
Other comprehensive income/(loss) before reclassifications		4,349		8,712		(2,395)		155		(6,513)		(319)		3,989
Amounts reclassified from accumulated other comprehensive income		(405)		25		140		0		209		22		(9)
Balance - December 31, 2014	$	(3,679)	$	(2,555)	$	(2,255)	$	(119)	$	(11,392)	$	(233)	$	(20,233)
Other comprehensive income/(loss) before reclassifications		1,670		621		0		21		(202)		0		2,110
Amounts reclassified from accumulated other comprehensive income		(100)		58		70		0		112		10		150
Balance – March 31, 2015	$	(2,109)	$	(1,876)	$	(2,185)	$	(98)	$	(11,482)	$	(223)	$	(17,973)
Other comprehensive income/(loss) before reclassifications		1,350		36		0		14		(856)		0		544
Amounts reclassified from accumulated other comprehensive income		(104)		(48)		91		0		110		11		60
Balance – June 30, 2015	$	(863)	$	(1,888)	$	(2,094)	$	(84)	$	(12,228)	$	(212)	$	(17,369)

The following tables present the components of comprehensive income for the six- and three-month periods ended June 30, 2015 and 2014:


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the six months ended June 30, 2015
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	5,024	$	(2,004)	$	3,020
Less: accretable yield recognized in income		340		(136)		204
Net unrealized gains on investments with OTTI		4,684		(1,868)		2,816

Available for sale securities – all other:
Unrealized holding gains		1,092		(435)		657
Less: losses recognized in income		(17)		7		(10)
Net unrealized gains on all other AFS securities		1,109		(442)		667

Held to maturity securities:
Unrealized holding gains		0		0		0
Less: amortization recognized in income		(268)		107		(161)
Net unrealized gains on HTM securities		268		(107)		161

Cash flow hedges:
Unrealized holding gains		59		(24)		35

Pension Plan:
Unrealized net actuarial loss		(1,759)		701		(1,058)
Less: amortization of unrecognized loss		(372)		148		(224)
Less: amortization of transition asset		10		(4)		6
Less: amortization of prior service costs		(6)		2		(4)
Net pension plan liability adjustment		(1,391)		555		(836)

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized loss		(24)		10		(14)
Less: amortization of prior service costs		(10)		3		(7)
Net SERP liability adjustment		34		(13)		21
Other comprehensive income	$	4,763	$	(1,899)	$	2,864


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the six months ended June 30, 2014
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	5,401	$	(2,160)	$	3,241
Less: accretable yield recognized in income		331		(132)		199
Net unrealized gains on investments with OTTI		5,070		(2,028)		3,042

Available for sale securities – all other:
Unrealized holding gains		13,743		(5,494)		8,249
Less: losses recognized in income		(154)		61		(93)
Net unrealized gains on all other AFS securities		13,897		(5,555)		8,342

Held to maturity securities:
Unrealized holding losses		(3,984)		1,593		(2,391)
Less: amortization recognized in income		(32)		13		(19)
Net unrealized losses on HTM securities		(3,952)		1,580		(2,372)

Cash flow hedges:
Unrealized holding gains		185		(74)		111

Pension Plan:
Unrealized net actuarial loss		(112)		45		(67)
Less: amortization of unrecognized loss		(187)		75		(112)
Less: amortization of transition asset		20		(8)		12
Less: amortization of prior service costs		(6)		2		(4)
Net pension plan liability adjustment		61		(24)		37

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized gain		9		(4)		5
Less: amortization of prior service costs		(10)		4		(6)
Net SERP liability adjustment		1		0		1
Other comprehensive income	$	15,262	$	(6,101)	$	9,161


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended June 30, 2015
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	2,246	$	(896)	$	1,350
Less: accretable yield recognized in income		173		(69)		104
Net unrealized gains on investments with OTTI		2,073		(827)		1,246

Available for sale securities – all other:
Unrealized holding gains		60		(24)		36
Less: gains recognized in income		80		(32)		48
Net unrealized losses on all other AFS securities		(20)		8		(12)

Held to maturity securities:
Unrealized holding losses		0		0		0
Less: amortization recognized in income		(152)		61		(91)
Net unrealized gains on HTM securities		152		(61)		91

Cash flow hedges:
Unrealized holding gains		24		(10)		14

Pension Plan:
Unrealized net actuarial loss		(1,425)		569		(856)
Less: amortization of unrecognized loss		(186)		74		(112)
Less: amortization of transition asset		5		(2)		3
Less: amortization of prior service costs		(3)		2		(1)
Net pension plan liability adjustment		(1,241)		495		(746)

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized gain		(12)		5		(7)
Less: amortization of prior service costs		(5)		1		(4)
Net SERP liability adjustment		17		(6)		11
Other comprehensive income	$	1,005	$	(401)	$	604


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended June 30, 2014
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	852	$	(341)	$	511
Less: accretable yield recognized in income		171		(68)		103
Net unrealized gains on investments with OTTI		681		(273)		408

Available for sale securities – all other:
Unrealized holding gains		8,753		(3,499)		5,254
Less: losses recognized in income		(86)		34		(52)
Net unrealized gains on all other AFS securities		8,839		(3,533)		5,306

Held to maturity securities:
Unrealized holding losses		(3,984)		1,593		(2,391)
Less: amortization recognized in income		(32)		13		(19)
Net unrealized losses on HTM securities		(3,952)		1,580		(2,372)

Cash flow hedges:
Unrealized holding gains		93		(37)		56

Pension Plan:
Unrealized net actuarial gain		186		(74)		112
Less: amortization of unrecognized loss		(94)		38		(56)
Less: amortization of transition asset		10		(4)		6
Less: amortization of prior service costs		(3)		1		(2)
Net pension plan liability adjustment		273		(109)		164

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized gain		5		(1)		4
Less: amortization of prior service costs		(5)		1		(4)
Net SERP liability adjustment		0		0		0
Other comprehensive income	$	5,934	$	(2,372)	$	3,562

The following table presents the details of amount reclassified from accumulated other comprehensive loss for the six- and three-month periods ended June 30, 2015 and 2014:



Amounts Reclassified From Accumulated Other Comprehensive Loss (in thousands)	For the six months ended June 30, 2015		For the six months ended June 30, 2014		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on investment securities with OTTI:
Accretable yield	$	340	$	331	Interest income on taxable investment securities
Taxes		(136)		(132)	Tax expense
	$	204	$	199	Net of tax
Unrealized gains and losses on available for sale investment securities - all others:
Losses on sales	$	(17)	$	(154)	Net gains/(losses) - other
Taxes		7		61	Tax benefit
	$	(10)	$	(93)	Net of tax
Unrealized gains and losses on held to maturity securities:
Amortization	$	(268)	$	(32)	Interest income on taxable investment securities
Taxes		107		13	Tax benefit
	$	(161)	$	(19)	Net of tax
Net pension plan liability adjustment:
Amortization of unrecognized loss		(372)		(187)	Salaries and employee benefits
Amortization of transition asset		10		20	Salaries and employee benefits
Amortization of prior service costs		(7)		(6)	Salaries and employee benefits
Taxes		147		69	Tax benefit
	$	(222)	$	(104)	Net of tax
Net SERP liability adjustment:
Amortization of unrecognized loss		(24)		9	Salaries and employee benefits
Amortization of prior service costs		(10)		(10)	Salaries and employee benefits
Taxes		13		0	Tax benefit
	$	(21)	$	(1)	Net of tax

Total reclassifications for the period	$	(210)	$	(18)	Net of tax



Amounts Reclassified From Accumulated Other Comprehensive Loss (in thousands)	For the Three months ended June 30, 2015		For the Three months ended June 30, 2014		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on investment securities with OTTI:
Accretable Yield	$	173	$	171	Interest income on taxable investment securities
Taxes		(69)		(68)	Tax expense
	$	104	$	103	Net of tax
Unrealized gains and losses on available for sale investment securities - all others:
Gains/(losses) on sales	$	80	$	(86)	Net gains/(losses) - other
Taxes		(32)		34	Tax expense/benefit
	$	48	$	(52)	Net of tax
Unrealized gains and losses on held to maturity securities:
Amortization	$	(152)	$	(32)	Interest income on taxable investment securities
Taxes		61		13	Tax benefit
	$	(91)	$	(19)	Net of tax
Net pension plan liability adjustment:
Amortization of unrecognized loss		(186)		(94)	Salaries and employee benefits
Amortization of transition asset		5		10	Salaries and employee benefits
Amortization of prior service costs		(4)		(3)	Salaries and employee benefits
Taxes		75		35	Tax benefit
	$	(110)	$	(52)	Net of tax
Net SERP liability adjustment:
Amortization of unrecognized gain		(12)		5	Salaries and employee benefits
Amortization of prior service costs		(5)		(5)	Salaries and employee benefits
Taxes		6		0	Tax benefit
	$	(11)	$	0	Net of tax

Total reclassifications for the period	$	(60)	$	(20)	Net of tax