(8.) ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of other comprehensive income (loss) for the three and six month periods ended June 30, 2016 and 2015 (in thousands):


		Pre-tax						Net-of-tax
		Amount			Tax Effect			Amount
Three months ended June 30, 2016
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	6,810		$	2,629		$	4,181
Reclassification adjustment for net gains included in net income ⁽¹⁾		(1,417	)		(547	)		(870	)
Total securities available for sale and transferred securities		5,393			2,082			3,311
Amortization of pension and post-retirement items:
Prior service credit		(12	)		(4	)		(8	)
Net actuarial losses		239			91			148
Total pension and post-retirement obligations		227			87			140
Other comprehensive income	$	5,620		$	2,169		$	3,451

Three months ended June 30, 2015
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	(9,986	)	$	(3,822	)	$	(6,164	)
Reclassification adjustment for net gains included in net income ⁽¹⁾		(69	)		(26	)		(43	)
Total securities available for sale and transferred securities		(10,055	)		(3,848	)		(6,207	)
Amortization of pension and post-retirement items:
Prior service credit		(12	)		(4	)		(8	)
Net actuarial losses		235			87			148
Total pension and post-retirement obligations		223			83			140
Other comprehensive loss	$	(9,832	)	$	(3,765	)	$	(6,067	)

(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.


		Pre-tax						Net-of-tax
		Amount			Tax Effect			Amount
Six months ended June 30, 2016
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	19,006		$	7,335		$	11,671
Reclassification adjustment for net gains included in net income ⁽¹⁾		(2,079	)		(802	)		(1,277	)
Total securities available for sale and transferred securities		16,927			6,533			10,394
Amortization of pension and post-retirement items:
Prior service credit		(24	)		(9	)		(15	)
Net actuarial losses		478			184			294
Total pension and post-retirement obligations		454			175			279
Other comprehensive income	$	17,381		$	6,708		$	10,673

Six months ended June 30, 2015
Securities available for sale and transferred securities:
Change in unrealized gain/loss during the period	$	(3,590	)	$	(1,386	)	$	(2,204	)
Reclassification adjustment for net gains included in net income ⁽¹⁾		(1,208	)		(466	)		(742	)
Total securities available for sale and transferred securities		(4,798	)		(1,852	)		(2,946	)
Amortization of pension and post-retirement items:
Prior service credit		(24	)		(9	)		(15	)
Net actuarial losses		471			181			290
Total pension and post-retirement obligations		447			172			275
Other comprehensive loss	$	(4,351	)	$	(1,680	)	$	(2,671	)

Activity in accumulated other comprehensive loss, net of tax, for the three and six month periods ended June 30, 2016 and 2015 was as follows (in thousands):


		Securities
		Available for			Pension and			Accumulated
		Sale and			Post-			Other
		Transferred			retirement			Comprehensive
		Securities			Obligations			Loss
Three months ended June 30, 2016
Balance at beginning of period	$	6,387		$	(10,492	)	$	(4,105	)
Other comprehensive income before reclassifications		4,181			-			4,181
Amounts reclassified from accumulated other comprehensive loss		(870	)		140			(730	)
Net current period other comprehensive income		3,311			140			3,451
Balance at end of period	$	9,698		$	(10,352	)	$	(654	)

Three months ended June 30, 2015
Balance at beginning of period	$	4,886		$	(10,501	)	$	(5,615	)
Other comprehensive loss before reclassifications		(6,164	)		-			(6,164	)
Amounts reclassified from accumulated other comprehensive loss		(43	)		140			97
Net current period other comprehensive income (loss)		(6,207	)		140			(6,067	)
Balance at end of period	$	(1,321	)	$	(10,361	)	$	(11,682	)


		Securities
		Available for			Pension and			Accumulated
		Sale and			Post-			Other
		Transferred			retirement			Comprehensive
		Securities			Obligations			Loss
Six months ended June 30, 2016
Balance at beginning of period	$	(696	)	$	(10,631	)	$	(11,327	)
Other comprehensive income before reclassifications		11,671			-			11,671
Amounts reclassified from accumulated other comprehensive loss		(1,277	)		279			(998	)
Net current period other comprehensive income		10,394			279			10,673
Balance at end of period	$	9,698		$	(10,352	)	$	(654	)

Six months ended June 30, 2015
Balance at beginning of period	$	1,625		$	(10,636	)	$	(9,011	)
Other comprehensive loss before reclassifications		(2,204	)		-			(2,204	)
Amounts reclassified from accumulated other comprehensive loss		(742	)		275			(467	)
Net current period other comprehensive income (loss)		(2,946	)		275			(2,671	)
Balance at end of period	$	(1,321	)	$	(10,361	)	$	(11,682	)

The following tables present the amounts reclassified out of each component of accumulated other comprehensive loss for the three and six month periods ended June 30, 2016 and 2015 (in thousands):


		Amount Reclassified from
Details About Accumulated Other		Accumulated Other					Affected Line Item in the
Comprehensive Loss Components		Comprehensive Loss					Consolidated Statement of Income
		Three months ended
		June 30,
		2016			2015
Realized gain on sale of investment securities	$	1,387		$	-		Net gain on disposal of investment securities
Amortization of unrealized holding gains (losses)
on investment securities transferred from
available for sale to held to maturity		30			69		Interest income
		1,417			69		Total before tax
		(547	)		(26	)	Income tax expense
		870			43		Net of tax
Amortization of pension and post-retirement items:
Prior service credit ⁽¹⁾		12			12		Salaries and employee benefits
Net actuarial losses ⁽¹⁾		(239	)		(235	)	Salaries and employee benefits
		(227	)		(223	)	Total before tax
		87			83		Income tax benefit
		(140	)		(140	)	Net of tax
Total reclassified for the period	$	730		$	(97	)

(1) These items are included in the computation of net periodic pension expense. See Note 10 – Employee Benefit Plans for additional information.


		Amount Reclassified from
Details About Accumulated Other		Accumulated Other					Affected Line Item in the
Comprehensive Loss Components		Comprehensive Loss					Consolidated Statement of Income
		Six months ended
		June 30,
		2016			2015
Realized gain on sale of investment securities	$	2,000		$	1,062		Net gain on disposal of investment securities
Amortization of unrealized holding gains (losses)
on investment securities transferred from
available for sale to held to maturity		79			146		Interest income
		2,079			1,208		Total before tax
		(802	)		(466	)	Income tax expense
		1,277			742		Net of tax
Amortization of pension and post-retirement items:
Prior service credit ⁽¹⁾		24			24		Salaries and employee benefits
Net actuarial losses ⁽¹⁾		(478	)		(471	)	Salaries and employee benefits
		(454	)		(447	)	Total before tax
		175			172		Income tax benefit
		(279	)		(275	)	Net of tax
Total reclassified for the period	$	998		$	467

(1) These items are included in the computation of net periodic pension expense. See Note 10 – Employee Benefit Plans for additional information.