CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of Actual and Required Capital Ratios

The actual and required capital ratios were as follows:



	June 30, 2017		Regulatory Minimum to be Well Capitalized		December 31, 2016		Regulatory Minimum to be Well Capitalized
Company (consolidated)
Total capital to risk weighted assets	13.6	%	10.0	%	16.5	%	10.0	%
Common equity tier 1 capital to risk weighted assets	11.1		6.5		15.0		6.5
Tier 1 capital to risk weighted assets	12.1		8.0		15.0		8.0
Tier 1 capital to average assets	7.6		5.0		8.9		5.0

Bank
Total capital to risk weighted assets	13.6	%	10.0	%	16.7	%	10.0	%
Common equity tier 1 capital to risk weighted assets	12.8		6.5		15.2		6.5
Tier 1 capital to risk weighted assets	12.8		8.0		15.2		8.0
Tier 1 capital to average assets	8.3		5.0		9.1		5.0

Schedule of Components of Accumulated Other Comprehensive Income

Components of accumulated other comprehensive income is as follows:



(In thousands)	June 30, 2017			December 31, 2016
Other accumulated comprehensive loss, before tax:
Net unrealized holding gain/(loss) on AFS securities	$	1,332		$	(3,269	)
Net unrealized loss on effective cash flow hedging derivatives	(3,470		)	(2,766		)
Net unrealized holding loss on post-retirement plans	(580		)	(622		)

Income taxes related to items of accumulated other comprehensive loss:
Net unrealized holding gain/(loss) on AFS securities	(496		)	1,144
Net unrealized loss on effective cash flow hedging derivatives	1,293			968
Net unrealized holding loss on post-retirement plans	216			219
Accumulated other comprehensive loss	$	(1,705	)	$	(4,326	)

Schedule of Components of Other Comprehensive Income

The following tables presents the components of other comprehensive income for the three and six months ended June 30, 2017 and 2016:



(In thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended June 30, 2017
Net unrealized holding gain on AFS securities:	x
Net unrealized gain arising during the period	$	3,485		$	(1,292	)	$	2,193
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on AFS securities	3,485			(1,292		)	2,193

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period	(481		)	242			(239		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on cash flow hedging derivatives	(481		)	242			(239		)

Net unrealized holding loss on post-retirement plans:
Net unrealized gain/(loss) arising during the period	(15		)	18			3
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain/(loss) on post-retirement plans	(15		)	18			3
Other comprehensive income	$	2,989		$	(1,032	)	$	1,957

Three Months Ended June 30, 2016
Net unrealized holding gains on AFS securities:
Net unrealized gains arising during the period	$	2,690		$	(941	)	$	1,749
Less: reclassification adjustment for gains realized in net income	—			—			—
Net unrealized holding gains on AFS securities	2,690			(941		)	1,749

Net unrealized (loss) on cash flow hedging derivatives:
Net unrealized (loss) arising during the period	(503		)	176			(327		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized (loss) on cash flow hedging derivatives	(503		)	176			(327		)

Net unrealized holding gain on post-retirement plans:
Net unrealized gain arising during the period	7			(3		)	4
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	7			(3		)	4
Other comprehensive income	$	2,194		$	(768	)	$	1,426



(In thousands)	Before Tax			Tax Effect			Net of Tax
Six Months Ended June 30, 2017
Net unrealized holding gain on AFS securities:	x
Net unrealized gain arising during the period	$	4,601		$	(1,640	)	$	2,961
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on AFS securities	4,601			(1,640		)	2,961

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period	(704		)	325			(379		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on cash flow hedging derivatives	(704		)	325			(379		)

Net unrealized holding loss on post-retirement plans:
Net unrealized gain arising during the period	42			(3		)	39
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	42			(3		)	39
Other comprehensive income	$	3,939		$	(1,318	)	$	2,621

Six Months Ended June 30, 2016
Net unrealized holding gains on AFS securities:
Net unrealized gains arising during the period	$	8,618		$	(3,016	)	$	5,602
Less: reclassification adjustment for gains realized in net income	—			—			—
Net unrealized holding gains on AFS securities	8,618			(3,016		)	5,602

Net unrealized (loss) on cash flow hedging derivatives:
Net unrealized (loss) arising during the period	(1,217		)	426			(791		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized (loss) on cash flow hedging derivatives	(1,217		)	426			(791		)

Net unrealized holding gain on post-retirement plans:
Net unrealized gain arising during the period	78			(27		)	51
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	78			(27		)	51
Other comprehensive income	$	7,479		$	(2,617	)	$	4,862

Schedule of Gross Changes in Each Component of Accumulated Other Comprehensive Income

The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three and six months ended June 30, 2017 and 2016:



(in thousands)	Net unrealized holding gain on AFS Securities			Net loss on effective cash flow hedging derivatives			Net unrealized holding loss on pension plans			Total
Three Months Ended June 30, 2017
Balance at beginning of period	$	(1,357	)	$	(1,938	)	$	(367	)	$	(3,662	)
Other comprehensive gain(loss) before reclassifications	2,193			(239		)	3			1,957
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive income	2,193			(239		)	3			1,957
Balance at end of period	$	836		$	(2,177	)	$	(364	)	$	(1,705	)

Three Months Ended June 30, 2016
Balance at beginning of period	$	9,566		$	(2,085	)	$	(416	)	$	7,065
Other comprehensive gain before reclassifications	1,749			(327		)	4			1,426
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive income	1,749			(327		)	4			1,426
Balance at end of period	$	11,315		$	(2,412	)	$	(412	)	$	8,491

Six Months Ended June 30, 2017
Balance at beginning of period	$	(2,125	)	$	(1,798	)	$	(403	)	$	(4,326	)
Other comprehensive gain(loss) before reclassifications	2,961			(379		)	39			2,621
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive income	2,961			(379		)	39			2,621
Balance at end of period	$	836		$	(2,177	)	$	(364	)	$	(1,705	)

Six Months Ended June 30, 2016
Balance at beginning of period	$	5,713		$	(1,621	)	$	(463	)	$	3,629
Other comprehensive gain before reclassifications	5,602			(791		)	51			4,862
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive income	5,602			(791		)	51			4,862
Balance at end of period	$	11,315		$	(2,412	)	$	(412	)	$	8,491

Schedule of Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income

The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016:




	Three Months Ended June 30,					Affected Line Item in the Statement where Net Income is Presented
(in thousands)	2017		2016
Realized gains on AFS securities:
	$	—	$	1,699		Non-interest income
	—		(595		)	Tax expense
Total reclassifications for the period	$	—	$	1,104		Net of tax




	Six Months Ended June 30,					Affected Line Item in the Statement where Net Income is Presented
(in thousands)	2017		2016
Realized gains on AFS securities:
	$	—	$	3,135		Non-interest income
	—		(1,097		)	Tax expense
Total reclassifications for the period	$	—	$	2,038		Net of tax