Note 13 - Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

(13) Other Comprehensive Income (Loss)

The following table illustrates activity within the balances in AOCI by component, and is shown for the years ended December 31, 2019, 2018, and 2017.

	Net unrealized			Net unrealized			Minimum
	gains (losses)			gains (losses)			pension
	on securities			on cash			liability
(in thousands)	available for sale			flow hedges			adjustment			Total
Balance, January 1, 2017	$	(1,211	)	$	(16	)	$	(272	)	$	(1,499	)
Net current period other comprehensive income (loss)		(721	)		209			(70	)		(582	)
Amounts reclassifed from AOCI		151			—			—			151
Balance, December 31, 2017 (1)	$	(1,781	)	$	193		$	(342	)	$	(1,930	)
Balance, January 1, 2018	$	(1,781	)	$	193		$	(342	)	$	(1,930	)
Net current period other comprehensive income (loss)		(3,053	)		174			173			(2,706	)
Reclassification adjustment for adoption of ASU 2018-02		(496	)		41			(51	)		(506	)
Balance, December 31, 2018	$	(5,330	)	$	408		$	(220	)	$	(5,142	)
Balance, January 1, 2019	$	(5,330	)	$	408		$	(220	)	$	(5,142	)
Net current period other comprehensive income (loss)		6,415			(445	)		(151	)		5,819
Balance, December 31, 2019	$	1,085		$	(37	)	$	(371	)	$	677

(1) December 31, 2017 AOCI component balances reflect a correction of incorrectly reported year-end balances in the Footnote titled “Other Comprehensive Income (Loss)” of the 2017 Form 10-K, which were presented as $(2,278), $234, and $(392) for securities AFS, cash flow hedges, and minimum pension liability, respectively.

The above table includes $506,000 reclassification from AOCI to retained earnings related to the adoption of ASU 2018-02 in the first quarter of 2018. ASU 2018-02 provided for the reclassification of tax effects stranded in OCI as a result of the 2017 TCJA into retained earnings. The TCJA reduced the US Federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, Bancorp was required to re-measure its net DTAs 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 OCI, unadjusted for the new tax rate.

The following table illustrates activity within the reclassifications out of AOCI:

Details of accumulated								Affected line item in
other comprehensive	Amount reclassified from accumulated							the consolidated
income (loss) components	other comprehensive income (loss)							statements of income
(in thousands)
For the years ended December 31,	2019		2018		2017
Unrealized gains (losses) on securities available for sale:
Realized loss on sale of securities available for sale	$	—	$	—	$	(232	)	Loss on sale of securities
Effect of income taxes		—		—		81		Income tax expense
Reclassification, net of income taxes	$	—	$	—	$	(151	)