OTHER COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2016

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME

15. OTHER COMPREHENSIVE INCOME

OCI components and related tax effects were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2016		2015		2016		2015
Available for Sale Securities:
Change in unrealized gain (loss) on securities available for sale	$	(788)	$	488	$	1,920	$	670
Reclassification adjustment for gain on security available for sale recognized in earnings		—		—		—		(88)
Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		57		(58)		(91)		(84)
Net unrealized gains (losses)		(731)		430		1,829		498
Tax effect		255		(151)		(640)		(175)
Net of tax		(476)		279		1,189		323
Cash Flow Hedges:
Change in fair value of derivatives used for cash flow hedges		127		(503)		(663)		(724)
Reclassification amount for derivative losses realized in income		83		100		256		304
Net unrealized gains (losses)		210		(403)		(407)		(420)
Tax effect		(75)		140		143		146
Net of tax		135		(263)		(264)		(274)
Total other comprehensive income components, net of tax	$	(341)	$	16	$	925	$	49

Significant amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2016 and 2015:

			Amounts Reclassified From Accumulated
			Other Comprehensive Income
		Three Months Ended				Nine Months Ended
	Affected Line Items in the Consolidated	September 30,				September 30,
(in thousands)	Statements of Income	2016		2015		2016		2015
Available for Sale Securities:
Gain on call of security available for sale	Noninterest income	$	—	$	—	$	—	$	88
Tax effect	Income tax expense		—		—		—		(31)
Net of tax	Net income		—		—		—		57
Cash Flow Hedges:
Interest rate swap on money market deposits	Interest expense on deposits		(42)		(49)		(128)		(148)
Interest rate swap on FHLB advance	Interest expense on FHLB advances		(41)		(51)		(128)		(156)
Total derivative losses on cash flow hedges	Total interest expense		(83)		(100)		(256)		(304)
Tax effect	Income tax expense		29		35		90		106
Net of tax	Net income		(54)		(65)	$	(166)	$	(198)
Net of tax, total all reclassification amounts	Net income	$	(54)	$	(65)	$	(166)	$	(141)

The following is a summary of the AOCI balances, net of tax:

			2016
(in thousands)	December 31, 2015		Change		September 30, 2016
Unrealized gain on securities available for sale	$	1,727	$	1,247	$	2,974
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		712		(58)		654
Unrealized loss on cash flow hedge		(390)		(264)		(654)
Total unrealized gain	$	2,049	$	925	$	2,974

			2015
(in thousands)	December 31, 2014		Change		September 30, 2015
Unrealized gain on securities available for sale	$	3,839	$	378	$	4,217
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		792		(55)		737
Unrealized loss on cash flow hedge		(316)		(274)		(590)
Total unrealized gain	$	4,315	$	49	$	4,364