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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 9 Months Ended
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Sep. 30, 2022
Equity [Abstract] |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows:
|  | September 30, 2022 |  | December 31, 2021 |  | Minimum Capital Requirement
Company (consolidated) |  |  |  |  |  |
Total capital to risk-weighted assets |  | 15.1 | % |  | 17.3 | % |  | 8.0 | %
Common equity tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 15.0 |  |  | 4.5 |
Tier 1 capital to risk-weighted assets |  | 13.0 |  |  | 15.3 |  |  | 6.0 |
Tier 1 capital to average assets |  | 10.1 |  |  | 10.5 |  |  | 4.0 |
|  | September 30, 2022 |  | December 31, 2021 |  | Regulatory Minimum to be Adequately Capitalized |  | Regulatory Minimum to be Well Capitalized
Bank |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | 13.6 | % |  | 15.9 | % |  | 8.0 | % |  | 10.0 | %
Common equity tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 14.8 |  |  | 4.5 |  |  | 6.5 |
Tier 1 capital to risk-weighted assets |  | 12.7 |  |  | 14.8 |  |  | 6.0 |  |  | 8.0 |
Tier 1 capital to average assets |  | 9.9 |  |  | 10.1 |  |  | 4.0 |  |  | 5.0 |
The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Failure to meet capital requirements can initiate regulatory action. At each date shown, the Company met the minimum capital requirements and 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. 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%, including a 2.5% capital conservation buffer. Capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the capital conservation buffer is not met. At September 30, 2022, 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 September 30, 2022 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%. Accumulated other comprehensive (loss) Components of accumulated other comprehensive (loss) is as follows:
(In thousands) |  | September 30, 2022 |  | December 31, 2021
Other accumulated comprehensive income, before tax: |  |  |  |
Net unrealized holding (loss) on AFS securities |  | $ | (246,739) |  |  | $ | (1,806) |
Net unrealized (loss) on cash flow hedging derivatives |  | (5,555) |  |  | — |
Net unrealized holding (loss) on pension plans |  | (2,518) |  |  | (2,518) |
Income taxes related to items of accumulated other comprehensive income: |  |  |  |
Net unrealized tax benefit on AFS securities |  | 64,150 |  |  | 407 |
Net unrealized tax benefit on cash flow hedging derivatives |  | 1,494 |  |  | — |
Net unrealized tax benefit on pension plans |  | 674 |  |  | 674 |
Accumulated other comprehensive loss |  | $ | (188,494) |  |  | $ | (3,243) |
The following table presents the components of other comprehensive (loss) for the three and nine months ended September 30, 2022 and 2021:
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Three Months Ended September 30, 2022 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  | x |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (83,073) |  |  | $ | 21,639 |  |  | $ | (61,434) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (83,073) |  |  | 21,639 |  |  | (61,434) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized (loss) on cash flow hedging derivatives |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Other comprehensive (loss) |  | $ | (88,628) |  |  | $ | 23,133 |  |  | $ | (65,495) |
Three Months Ended September 30, 2021 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (10,098) |  |  | $ | 2,575 |  |  | $ | (7,523) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (10,098) |  |  | 2,575 |  |  | (7,523) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | — |  |  | — |  |  | — |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on cash flow hedging derivatives |  | — |  |  | — |  |  | — |
Other comprehensive (loss) |  | $ | (10,098) |  |  | $ | 2,575 |  |  | $ | (7,523) |
(In thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Nine Months Ended September 30, 2022 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (244,927) |  |  | $ | 63,741 |  |  | $ | (181,186) |
Less: reclassification adjustment for gains realized in net income |  | 6 |  |  | (2) |  |  | 4 |
Net unrealized holding (loss) on AFS securities |  | (244,933) |  |  | 63,743 |  |  | (181,190) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on cash flow hedging derivatives |  | (5,555) |  |  | 1,494 |  |  | (4,061) |
Other comprehensive (loss) |  | $ | (250,488) |  |  | $ | 65,237 |  |  | $ | (185,251) |
Nine Months Ended September 30, 2021 |  |  |  |  |  |
Net unrealized holding loss on AFS securities: |  |  |  |  |  |
Net unrealized (losses) arising during the period |  | $ | (31,718) |  |  | $ | 8,096 |  |  | $ | (23,622) |
Less: reclassification adjustment for gains realized in net income |  | — |  |  | — |  |  | — |
Net unrealized holding (loss) on AFS securities |  | (31,718) |  |  | 8,096 |  |  | (23,622) |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized (loss) arising during the period |  | — |  |  | — |  |  | — |
Less: reclassification adjustment for (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on cash flow hedging derivatives |  | — |  |  | — |  |  | — |
Other comprehensive (loss) |  | $ | (31,718) |  |  | $ | 8,096 |  |  | $ | (23,622) |
The following table presents the changes in each component of accumulated other comprehensive (loss), for the three and nine months ended September 30, 2022 and 2021:
(In thousands) |  | Net unrealized holding loss on AFS Securities |  | Net loss on effective cash flow hedging derivatives |  |  |  | Net unrealized holding loss on pension plans |  | Total
Three Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (121,154) |  |  | $ | — |  |  |  |  | $ | (1,845) |  |  | $ | (122,999) |
Other comprehensive (loss) before reclassifications |  | (61,434) |  |  | (4,061) |  |  |  |  | — |  |  | (65,495) |
Less: amounts reclassified from accumulated other comprehensive (loss) |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive (loss) |  | (61,434) |  |  | (4,061) |  |  |  |  | — |  |  | (65,495) |
Balance at End of Period |  | $ | (182,588) |  |  | $ | (4,061) |  |  |  |  | $ | (1,845) |  |  | $ | (188,494) |
Three Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 17,359 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 14,772 |
Other comprehensive (loss) before reclassifications |  | (7,523) |  |  | — |  |  |  |  | — |  |  | (7,523) |
Less: amounts reclassified from accumulated other comprehensive (loss) |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive income |  | (7,523) |  |  | — |  |  |  |  | — |  |  | (7,523) |
Balance at End of Period |  | $ | 9,836 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 7,249 |
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (1,398) |  |  | $ | — |  |  |  |  | $ | (1,845) |  |  | $ | (3,243) |
Other comprehensive (loss) before reclassifications |  | (181,186) |  |  | (4,061) |  |  |  |  | — |  |  | (185,247) |
Less: amounts reclassified from accumulated other comprehensive income |  | 4 |  |  | — |  |  |  |  | — |  |  | 4 |
Total other comprehensive (loss) |  | (181,190) |  |  | (4,061) |  |  |  |  | — |  |  | (185,251) |
Balance at End of Period |  | $ | (182,588) |  |  | $ | (4,061) |  |  |  |  | $ | (1,845) |  |  | $ | (188,494) |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | 33,458 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 30,871 |
Other comprehensive (loss) before reclassifications |  | (23,622) |  |  | — |  |  |  |  |  |  | (23,622) |
Less: amounts reclassified from accumulated other comprehensive income |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total other comprehensive (loss) |  | (23,622) |  |  | — |  |  |  |  | — |  |  | (23,622) |
Balance at End of Period |  | $ | 9,836 |  |  | $ | — |  |  |  |  | $ | (2,587) |  |  | $ | 7,249 |
The following table presents the amounts reclassified out of each component of accumulated other comprehensive income for the three and nine months ended September 30, 2022 and 2021:
|  |  |  |  |  | Affected Line Item in the
|  | Three Months Ended September 30, |  | Statement where Net Income
(In thousands) |  | 2022 |  | 2021 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |
|  | $ | — |  |  | $ | — |  |  | Non-interest income
|  | — |  |  | — |  |  | Retained earnings
|  | — |  |  | — |  |  | Tax expense
|  | — |  |  | — |  |  | Net of tax
Total reclassifications for the period |  | $ | — |  |  | $ | — |  |  | Net of tax
|  |  |  |  |  | Affected Line Item in the
|  | Nine Months Ended September 30, |  | Statement where Net Income
(In thousands) |  | 2022 |  | 2021 |  | is Presented
Realized gains on AFS securities: |  |  |  |  |  |
|  | $ | 6 |  |  |  |  | Non-interest income
|  | (2) |  |  | — |  |  | Tax expense
|  | 4 |  |  | — |  |  | Net of tax
Total reclassifications for the period |  | $ | 4 |  |  | $ | — |  |  | Net of tax

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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 https://asc.fasb.org/topic&trid=2208762 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 6 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008 + Details
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