(9.)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 (in thousands):

	Pre-tax Amount			Tax Effect			Net-of-tax Amount
Three months ended June 30, 2018
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	(3,414	)	$	(860	)	$	(2,554	)
Reclassification adjustment for net gains included in net income ⁽¹⁾		90			23			67
Total securities available for sale and transferred securities		(3,324	)		(837	)		(2,487	)
Hedging derivative instruments:
Change in unrealized gain/loss during the period		303			76			227
Pension and post-retirement obligations:
Amortization of prior service credit included in income		(18	)		(5	)		(13	)
Amortization of net actuarial loss included in income		188			48			140
Total pension and post-retirement obligations		170			43			127
Other comprehensive loss	$	(2,851	)	$	(718	)	$	(2,133	)
Six months ended June 30, 2018
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	(11,879	)	$	(2,994	)	$	(8,885	)
Reclassification adjustment for net gains included in net income ⁽¹⁾		172			44			128
Total securities available for sale and transferred securities		(11,707	)		(2,950	)		(8,757	)
Hedging derivative instruments:
Change in unrealized gain/loss during the period		164			41			123
Pension and post-retirement obligations:
Amortization of prior service credit included in income		(36	)		(10	)		(26	)
Amortization of net actuarial loss included in income		375			95			280
Total pension and post-retirement obligations		339			85			254
Other comprehensive loss	$	(11,204	)	$	(2,824	)	$	(8,380	)

(1)

Includes amounts related to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available for sale investment securities to the held to maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

(9.)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Continued)

	Pre-tax Amount			Tax Effect			Net-of-tax Amount
Three months ended June 30, 2017
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	2,988		$	1,154		$	1,834
Reclassification adjustment for net gains included in net income ⁽¹⁾		(184	)		(72	)		(112	)
Total securities available for sale and transferred securities		2,804			1,082			1,722
Hedging derivative instruments:
Change in unrealized gain/loss during the period		—			—			—
Pension and post-retirement obligations:
Amortization of prior service credit included in income		(13	)		(6	)		(7	)
Amortization of net actuarial loss included in income		291			113			178
Total pension and post-retirement obligations		278			107			171
Other comprehensive income	$	3,082		$	1,189		$	1,893
Six months ended June 30, 2017
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	4,158		$	1,605		$	2,553
Reclassification adjustment for net gains included in net income ⁽¹⁾		(387	)		(150	)		(237	)
Total securities available for sale and transferred securities		3,771			1,455			2,316
Hedging derivative instruments:
Change in unrealized gain/loss during the period		—			—			—
Pension and post-retirement obligations:
Amortization of prior service credit included in income		(26	)		(10	)		(16	)
Amortization of net actuarial loss included in income		583			225			358
Total pension and post-retirement obligations		557			215			342
Other comprehensive income	$	4,328		$	1,670		$	2,658

(1)

(9.)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Continued)

Activity in accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2018 and 2017 was as follows (in thousands):

	Hedging Derivative Instruments			Securities Available for Sale and Transferred Securities			Pension and Post- retirement Obligations			Accumulated Other Comprehensive Income (Loss)
Three months ended June 30, 2018
Balance at beginning of period	$	(104	)	$	(9,545	)	$	(8,514	)	$	(18,163	)
Other comprehensive income (loss) before reclassifications		227			(2,554	)		—			(2,327	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			67			127			194
Net current period other comprehensive income (loss)		227			(2,487	)		127			(2,133	)
Balance at end of period	$	123		$	(12,032	)	$	(8,387	)	$	(20,296	)
Six months ended June 30, 2018
Balance at beginning of period	$	—		$	(3,275	)	$	(8,641	)	$	(11,916	)
Other comprehensive income (loss) before reclassifications		123			(8,885	)		—			(8,762	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			128			254			382
Net current period other comprehensive income (loss)		123			(8,757	)		254			(8,380	)
Balance at end of period	$	123		$	(12,032	)	$	(8,387	)	$	(20,296	)
Three months ended June 30, 2017
Balance at beginning of period	$	—		$	(3,135	)	$	(10,051	)	$	(13,186	)
Other comprehensive income (loss) before reclassifications		—			1,834			—			1,834
Amounts reclassified from accumulated other comprehensive income (loss)		—			(112	)		171			59
Net current period other comprehensive income (loss)		—			1,722			171			1,893
Balance at end of period	$	—		$	(1,413	)	$	(9,880	)	$	(11,293	)
Six months ended June 30, 2017
Balance at beginning of period	$	—		$	(3,729	)	$	(10,222	)	$	(13,951	)
Other comprehensive income (loss) before reclassifications		—			2,553			—			2,553
Amounts reclassified from accumulated other comprehensive income (loss)		—			(237	)		342			105
Net current period other comprehensive income (loss)		—			2,316			342			2,658
Balance at end of period	$	—		$	(1,413	)	$	(9,880	)	$	(11,293	)

(9.)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Continued)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 (in thousands):

Details About Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Consolidated Statement of Income
	Three months ended
	June 30,
	2018			2017
Realized gain on sale of investment securities	$	7		$	210		Net gain on investment securities
Amortization of unrealized holding gains (losses) on investment securities transferred from available for sale to held to maturity		(97	)		(26	)	Interest income
		(90	)		184		Total before tax
		23			(72	)	Income tax benefit (expense)
		(67	)		112		Net of tax
Amortization of pension and post-retirement items:
Prior service credit ⁽¹⁾		18			13		Salaries and employee benefits
Net actuarial losses ⁽¹⁾		(188	)		(291	)	Salaries and employee benefits
		(170	)		(278	)	Total before tax
		43			107		Income tax benefit
		(127	)		(171	)	Net of tax
Total reclassified for the period	$	(194	)	$	(59	)

	Six months ended
	June 30,
	2018			2017
Realized gain on sale of investment securities	$	7		$	416		Net gain on investment securities
Amortization of unrealized holding gains (losses) on investment securities transferred from available for sale to held to maturity		(179	)		(29	)	Interest income
		(172	)		387		Total before tax
		44			(150	)	Income tax benefit (expense)
		(128	)		237		Net of tax
Amortization of pension and post-retirement items:
Prior service credit ⁽¹⁾		36			26		Salaries and employee benefits
Net actuarial losses ⁽¹⁾		(375	)		(583	)	Salaries and employee benefits
		(339	)		(557	)	Total before tax
		85			215		Income tax benefit
		(254	)		(342	)	Net of tax
Total reclassified for the period	$	(382	)	$	(105	)

(1)	These items are included in the computation of net periodic pension expense. See Note 11 – Employee Benefit Plans for additional information.