Note 9 - Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

( 9 ) Other Comprehensive Income

The following tables illustrate activity within the balances in accumulated other comprehensive income (loss) (AOCI) by component, and is shown for the

three

and

nine

month periods ended

September 30, 2018

and

2017.

The tables also include

$506

thousand reclassified from AOCI to retained earnings related to the adoption of ASU

2018

-

02

in the

first

quarter of

2018.

ASU

2018

-

02

provides for the reclassification of tax effects stranded in other comprehensive income as a result of the

2017

Tax Cuts and Jobs Act into retained earnings. The Tax Reform reduced the US Federal corporate tax rate from

35%

to

21%

effective

January 1, 2018.

As a result, Bancorp was required to remeasure its net deferred tax assets at the lower rate and recognize the adjustment through income tax expense in

2017.

The adjustment through income tax expense left items presented in AOCI, for which the related income tax effects were originally recognized in other comprehensive income, unadjusted for the new tax rate. The reclassification upon adoption of ASU

2018

-

02

results in AOCI reflecting the new tax rate.

(In thousands)	Net unrealized losses on securities available-for sale			Net unrealized gains on cash flow hedges		Minimum pension liability adjustment			Total
Balance at June 30, 2018	$	(7,274	)	$	623	$	(393	)	$	(7,044	)
Net current period other comprehensive gain (loss)		(1,632	)		40		-			(1,592	)
Amounts reclassified from other comprehensive income		-			-		-			-
Net current period other comprehensive income (loss)		(1,632	)		40		-			(1,592	)
Balance at September 30, 2018	$	(8,906	)	$	663	$	(393	)	$	(8,636	)

(In thousands)	Net unrealized gains (losses) on securities available-for sale			Net unrealized gains (losses) on cash flow hedges			Minimum pension liability adjustment			Total
Balance at June 30, 2017	$	(317	)	$	(21	)	$	(272	)	$	(610	)
Net current period other comprehensive gain		56			43			-			99
Amounts reclassified from other comprehensive income		(20	)		-			-			(20	)
Net current period other comprehensive income		36			43			-			79
Balance at September 30, 2017	$	(281	)	$	22		$	(272	)	$	(531	)

(In thousands)	Net unrealized losses on securities available-for sale			Net unrealized gains on cash flow hedges		Minimum pension liability adjustment			Total
Balance at December 31, 2017 (1)	$	(1,781	)	$	193	$	(342	)	$	(1,930	)
Net current period other comprehensive gain (loss)		(6,629	)		429		-			(6,200	)
Reclassification adjustment under ASU 2018-02		(496	)		41		(51	)		(506	)
Balance at September 30, 2018	$	(8,906	)	$	663	$	(393	)	$	(8,636	)

( 1 ) December 31, 2017 AOCI component balances reflect a correction of incorrectly reported year-end balances in Note 12 of the 2017 Form 10 -K, which were presented as $( 2,278 ), $234, and $( 392 ) for securities available-for-sale, cash flow hedges, and minimum pension liability, respectively.

(In thousands)	Net unrealized gains (losses) on securities available-for sale			Net unrealized gains (losses) on cash flow hedges			Minimum pension liability adjustment			Total
Balance at December 31, 2016	$	(1,211	)	$	(16	)	$	(272	)	$	(1,499	)
Net current period other comprehensive gain		950			38			-			988
Amounts reclassified from other comprehensive income		(20	)		-			-			(20	)
Net current period other comprehensive income		930			38			-			968
Balance at September 30, 2017	$	(281	)	$	22		$	(272	)	$	(531	)