OTHER COMPREHENSIVE INCOME

6 Months Ended

Jun. 30, 2017

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME

15. OTHER COMPREHENSIVE INCOME

OCI components and related tax effects were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2017		2016		2017		2016
Available for Sale Securities:
Change in unrealized gain (loss) on securities available for sale	$	423	$	416	$	1,129	$	2,708
Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		101		1		154		(148)
Net unrealized gains		524		417		1,283		2,560
Tax effect		(183)		(145)		(450)		(893)
Net of tax		341		272		833		1,667
Cash Flow Hedges:
Change in fair value of derivatives used for cash flow hedges		(104)		(219)		(76)		(790)
Reclassification amount for derivative losses realized in income		58		86		124		173
Net unrealized gains (losses)		(46)		(133)		48		(617)
Tax effect		16		48		(16)		216
Net of tax		(30)		(85)		32		(401)
Total other comprehensive income (loss) components, net of tax	$	311	$	187	$	865	$	1,266

Significant amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2017 and 2016:

		Amounts Reclassified From Accumulated
			Other Comprehensive Income
	Affected Line Items	Three Months Ended				Six Months Ended
	in the Consolidated	June 30,				June 30,
(in thousands)	Statements of Income	2017		2016		2017		2016
Cash Flow Hedges:
Interest rate swap on money market deposits	Interest expense on deposits		(29)		(43)	$	(63)	$	(86)
Interest rate swap on FHLB advance	Interest expense on FHLB advances		(29)		(43)		(61)		(87)
Total derivative losses on cash flow hedges	Total interest expense		(58)		(86)		(124)		(173)
Tax effect	Income tax expense		20		30		43		61
Net of tax	Net income	$	(38)		(56)	$	(81)	$	(112)

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

			2017
(in thousands)	December 31, 2016		Change		June 30, 2017
Unrealized gain on securities available for sale	$	237	$	733	$	970
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		706		100		806
Unrealized loss on cash flow hedge		(256)		32		(224)
Total unrealized gain	$	687	$	865	$	1,552

			2016
(in thousands)	December 31, 2015		Change		June 30, 2016
Unrealized gain on securities available for sale	$	1,727	$	1,763	$	3,490
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings		712		(96)		616
Unrealized loss on cash flow hedge		(390)		(401)		(791)
Total unrealized gain	$	2,049	$	1,266	$	3,315