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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 6 Months Ended
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Jun. 30, 2019
Stockholders' Equity Note [Abstract] |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows:
|  | June 30, 2019 |  | Regulatory Minimum to be Well Capitalized |  | December 31, 2018 |  | Regulatory Minimum to be Well Capitalized
Company (consolidated) |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk weighted assets |  | 12.9 | % |  | N/A |  |  | 13.0 | % |  | N/A |
Common equity tier 1 capital to risk weighted assets |  | 11.4 |  |  | N/A |  |  | 11.4 |  |  | N/A |
Tier 1 capital to risk weighted assets |  | 11.6 |  |  | N/A |  |  | 11.6 |  |  | N/A |
Tier 1 capital to average assets |  | 9.7 |  |  | N/A |  |  | 9.0 |  |  | N/A |
Bank |  |  |  |  |  |  |  |  |  |  |
Total capital to risk weighted assets |  | 12.1 | % |  | 8.0 | % |  | 12.2 | % |  | 8.0 | %
Common equity tier 1 capital to risk weighted assets |  | 11.5 |  |  | 4.5 |  |  | 11.6 |  |  | 4.5 |
Tier 1 capital to risk weighted assets |  | 11.5 |  |  | 6.0 |  |  | 11.6 |  |  | 6.0 |
Tier 1 capital to average assets |  | 9.7 |  |  | 4.0 |  |  | 9.0 |  |  | 4.0 |
At each date shown, the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity Tier 1 capital to risk weighted assets. The Bank's Common equity Tier 1 capital to risk weighted assets exceeds the minimum to be well capitalized. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of Common equity Tier 1 capital, of 2.5% of risk-weighted assets, to be phased in over three years and applied to the Common equity Tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio, and the Total risk-based capital ratio. As of January 1, 2019, banking organizations must maintain a minimum Common equity Tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5%, and a minimum Total risk-based capital ratio of 10.5%. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met. At June 30, 2019, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at June 30, 2019 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%. Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is as follows:
(In thousands) |  | June 30, 2019 |  | December 31, 2018
Other accumulated comprehensive income, before tax: |  |  |  |  |  |
Net unrealized holding gain/(loss) on AFS securities |  | $ | 18,056 |  |  | $ | (15,267 | )
Net unrealized holding (loss) on pension plans |  | (2,753 | ) |  | (2,753 | )
Income taxes related to items of accumulated other comprehensive income: |  |  |  |  |  |
Net unrealized tax (expense)/benefit on AFS securities |  | (4,738 | ) |  | 3,814 |
Net unrealized tax benefit on pension plans |  | 736 |  |  | 736 |
Accumulated other comprehensive income/(loss) |  | $ | 11,301 |  |  | $ | (13,470 | )
The following table presents the components of other comprehensive income for the three months ended June 30, 2019 and 2018:
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |
Net unrealized holding gain on AFS securities: |  | x |  |  |  |  |  |
Net unrealized gains arising during the period |  | $ | 19,106 |  |  | $ | (4,900 | ) |  | $ | 14,206 |
Less: reclassification adjustment for (losses) realized in net income |  | (2 | ) |  | 1 |  |  | (1 | )
Net unrealized holding gain on AFS securities |  | 19,108 |  |  | (4,901 | ) |  | 14,207 |
Other comprehensive income |  | $ | 19,108 |  |  | $ | (4,901 | ) |  | $ | 14,207 |
Three Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |
Net unrealized holding (loss) on AFS securities: |  |  |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (7,839 | ) |  | $ | 2,001 |  |  | $ | (5,838 | )
Less: reclassification adjustment for losses realized in net income |  | 1 |  |  | — |  |  | 1 |
Net unrealized holding (loss) on AFS securities |  | (7,840 | ) |  | 2,001 |  |  | (5,839 | )
Other comprehensive (loss) |  | $ | (7,840 | ) |  | $ | 2,001 |  |  | $ | (5,839 | )
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |
Net unrealized holding gain on AFS securities: |  | x |  |  |  |  |  |
Net unrealized gains arising during the period |  | $ | 33,327 |  |  | $ | (8,553 | ) |  | $ | 24,774 |
Less: reclassification adjustment for gains realized in net income |  | 4 |  |  | (1 | ) |  | 3 |
Net unrealized holding gain on AFS securities |  | 33,323 |  |  | (8,552 | ) |  | 24,771 |
Other comprehensive income |  | $ | 33,323 |  |  | $ | (8,552 | ) |  | $ | 24,771 |
Six Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |
Net unrealized holding (loss) on AFS securities: |  |  |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (27,001 | ) |  | $ | 6,932 |  |  | $ | (20,069 | )
Less: reclassification adjustment for losses realized in net income |  | 1 |  |  | — |  |  | 1 |
Net unrealized holding (loss) on AFS securities |  | (27,002 | ) |  | 6,932 |  |  | (20,070 | )
Other comprehensive (loss) |  | $ | (27,002 | ) |  | $ | 6,932 |  |  | $ | (20,070 | )
Less: reclassification related to adoption of ASU 2016-01 |  | 8,379 |  |  | (2,126 | ) |  | 6,253 |
Less: reclassification related to adoption of ASU 2018-01 |  | — |  |  | (896 | ) |  | (896 | )
Total change to accumulated other comprehensive (loss) |  | (35,381 | ) |  | 9,954 |  |  | (25,427 | )
The following table presents the changes in each component of accumulated other comprehensive (loss) income, for the three and six months ended June 30, 2019 and 2018:
(In thousands) |  | Net unrealized holding loss on AFS Securities |  | Net unrealized holding loss on pension plans |  | Total
Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (889 | ) |  | $ | (2,017 | ) |  | $ | (2,906 | )
Other comprehensive income before reclassifications |  | 14,206 |  |  | — |  |  | 14,206 |
Less: amounts reclassified from accumulated other comprehensive income (loss) |  | (1 | ) |  | — |  |  | (1 | )
Total other comprehensive income |  | 14,207 |  |  | — |  |  | 14,207 |
Balance at End of Period |  | $ | 13,318 |  |  | $ | (2,017 | ) |  | $ | 11,301 |
Three Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (13,182 | ) |  | $ | (2,245 | ) |  | $ | (15,427 | )
Other comprehensive (loss) before reclassifications |  | (5,838 | ) |  | — |  |  | (5,838 | )
Less: amounts reclassified from accumulated other comprehensive income (loss) |  | 1 |  |  | — |  |  | 1 |
Total other comprehensive (loss) |  | (5,839 | ) |  | — |  |  | (5,839 | )
Balance at End of Period |  | $ | (19,021 | ) |  | $ | (2,245 | ) |  | $ | (21,266 | )
Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (11,453 | ) |  | $ | (2,017 | ) |  | $ | (13,470 | )
Other comprehensive income before reclassifications |  | 24,774 |  |  | — |  |  | 24,774 |
Less: amounts reclassified from accumulated other comprehensive income |  | 3 |  |  | — |  |  | 3 |
Total other comprehensive (loss) |  | 24,771 |  |  | — |  |  | 24,771 |
Balance at End of Period |  | $ | 13,318 |  |  | $ | (2,017 | ) |  | $ | 11,301 |
Six Months Ended June 30, 2018 |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 6,008 |  |  | $ | (1,847 | ) |  | $ | 4,161 |
Other comprehensive gain (loss) before reclassifications |  | (20,069 | ) |  | — |  |  | (20,069 | )
Less: amounts reclassified from accumulated other comprehensive income |  | 1 |  |  | — |  |  | 1 |
Total other comprehensive (loss) income |  | (20,070 | ) |  | — |  |  | (20,070 | )
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 |  | 4,959 |  |  | 398 |  |  | 5,357 |
Balance at End of Period |  | $ | (19,021 | ) |  | $ | (2,245 | ) |  | $ | (21,266 | )
The following table presents the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2019 and 2018:
|  |  |  |  |  | Affected Line Item in the
|  | Three Months Ended June 30, |  | Statement where Net Income
(In thousands) |  | 2019 |  | 2018 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |  |  |
|  | $ | (2 | ) |  | $ | 1 |  |  | Non-interest income
|  | 1 |  |  | — |  |  | Tax expense
|  | (1 | ) |  | 1 |  |  | Net of tax
Total reclassifications for the period |  | $ | (1 | ) |  | $ | 1 |  |  | Net of tax
|  |  |  |  |  | Affected Line Item in the
|  | Six Months Ended June 30, |  | Statement where Net Income
(In thousands) |  | 2019 |  | 2018 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |  |  |
|  | $ | 4 |  |  | $ | 1 |  |  | Non-interest income
|  | (1 | ) |  | — |  |  | Tax expense
|  | 3 |  |  | 1 |  |  | Net of tax
Total reclassifications for the period |  | $ | 3 |  |  | $ | 1 |  |  | Net of tax

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- References No definition available. + Details
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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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