CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of Actual and Required Capital Ratios

The actual and required capital ratios were as follows:



	September 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	13.8	%	10.0	%	16.5	%	10.0	%
Common equity tier 1 capital to risk weighted assets	11.3		6.5		15.0		6.5
Tier 1 capital to risk weighted assets	12.7		8.0		15.0		8.0
Tier 1 capital to average assets	8.0		5.0		8.9		5.0

Bank
Total capital to risk weighted assets	13.8	%	10.0	%	16.7	%	10.0	%
Common equity tier 1 capital to risk weighted assets	13.0		6.5		15.2		6.5
Tier 1 capital to risk weighted assets	13.0		8.0		15.2		8.0
Tier 1 capital to average assets	8.5		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)	September 30, 2017			December 31, 2016
Other accumulated comprehensive income (loss), before tax:
Net unrealized holding gain/(loss) on AFS securities	$	1,849		$	(3,269	)
Net unrealized loss on effective cash flow hedging derivatives	(3,570		)	(2,766		)
Net unrealized holding loss on post-retirement plans	(577		)	(622		)

Income taxes related to items of accumulated other comprehensive loss:
Net unrealized holding (loss)/gain on AFS securities	(695		)	1,144
Net unrealized loss on effective cash flow hedging derivatives	1,341			968
Net unrealized holding loss on post-retirement plans	217			219
Accumulated other comprehensive loss	$	(1,435	)	$	(4,326	)

Schedule of Components of Other Comprehensive Income

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



(In thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended September 30, 2017
Net unrealized holding gain on AFS securities:	x
Net unrealized gain arising during the period	$	531		$	(199	)	$	332
Less: reclassification adjustment for gains (losses) realized in net income	19			(7		)	12
Net unrealized holding gain on AFS securities	512			(192		)	320

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period	(84		)	31			(53		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on cash flow hedging derivatives	(84		)	31			(53		)

Net unrealized holding loss on post-retirement plans:
Net unrealized gain/(loss) arising during the period	5			(2		)	3
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain/(loss) on post-retirement plans	5			(2		)	3
Other comprehensive income	$	433		$	(163	)	$	270

Three Months Ended September 30, 2016
Net unrealized holding gains on AFS securities:
Net unrealized gains arising during the period	$	(4,223	)	$	1,478		$	(2,745	)
Less: reclassification adjustment for gains realized in net income	1,354			(474		)	880
Net unrealized holding gains on AFS securities	(5,577		)	1,952			(3,625		)

Net unrealized (loss) on cash flow hedging derivatives:
Net unrealized (loss) arising during the period	(92		)	32			(60		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized (loss) on cash flow hedging derivatives	(92		)	32			(60		)

Net unrealized holding gain on post-retirement plans:
Net unrealized gain arising during the period	8			(3		)	5
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	8			(3		)	5
Other comprehensive income	$	(5,661	)	$	1,981		$	(3,680	)



(In thousands)	Before Tax			Tax Effect			Net of Tax
Nine Months Ended September 30, 2017
Net unrealized holding gain on AFS securities:	x
Net unrealized gain arising during the period	$	5,138		$	(1,846	)	$	3,292
Less: reclassification adjustment for gains (losses) realized in net income	19			(7		)	12
Net unrealized holding gain on AFS securities	5,119			(1,839		)	3,280

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period	(805		)	373			(432		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on cash flow hedging derivatives	(805		)	373			(432		)

Net unrealized holding loss on post-retirement plans:
Net unrealized gain arising during the period	45			(2		)	43
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	45			(2		)	43
Other comprehensive income	$	4,359		$	(1,468	)	$	2,891

Nine Months Ended September 30, 2016
Net unrealized holding gains on AFS securities:
Net unrealized gains arising during the period	$	7,530		$	(2,635	)	$	4,895
Less: reclassification adjustment for gains realized in net income	4,489			(1,571		)	2,918
Net unrealized holding gains on AFS securities	3,041			(1,064		)	1,977

Net unrealized (loss) on cash flow hedging derivatives:
Net unrealized (loss) arising during the period	(1,309		)	458			(851		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized (loss) on cash flow hedging derivatives	(1,309		)	458			(851		)

Net unrealized holding gain on post-retirement plans:
Net unrealized gain arising during the period	86			(30		)	56
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized holding gain on post-retirement plans	86			(30		)	56
Other comprehensive income	$	1,818		$	(636	)	$	1,182

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 nine months ended September 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 September 30, 2017
Balance at beginning of period	$	836		$	(2,177	)	$	(364	)	$	(1,705	)
Other comprehensive gain(loss) before reclassifications	332			(53		)	3			282
Less: amounts reclassified from accumulated other comprehensive income	12			—			—			12
Total other comprehensive income	320			(53		)	3			270
Balance at end of period	$	1,156		$	(2,230	)	$	(361	)	$	(1,435	)

Three Months Ended September 30, 2016
Balance at beginning of period	$	11,315		$	(2,412	)	$	(412	)	$	8,491
Other comprehensive gain before reclassifications	(2,745		)	(60		)	5			(2,800		)
Less: amounts reclassified from accumulated other comprehensive income	880			—			—			880
Total other comprehensive income	(3,625		)	(60		)	5			(3,680		)
Balance at end of period	$	7,690		$	(2,472	)	$	(407	)	$	4,811

Nine Months Ended September 30, 2017
Balance at beginning of period	$	(2,124	)	$	(1,798	)	$	(404	)	$	(4,326	)
Other comprehensive gain(loss) before reclassifications	3,292			(432		)	43			2,903
Less: amounts reclassified from accumulated other comprehensive income	12			—			—			12
Total other comprehensive income	3,280			(432		)	43			2,891
Balance at end of period	$	1,156		$	(2,230	)	$	(361	)	$	(1,435	)

Nine Months Ended September 30, 2016
Balance at beginning of period	$	5,713		$	(1,621	)	$	(463	)	$	3,629
Other comprehensive gain before reclassifications	4,895			(851		)	56			4,100
Less: amounts reclassified from accumulated other comprehensive income	2,918			—			—			2,918
Total other comprehensive income	1,977			(851		)	56			1,182
Balance at end of period	$	7,690		$	(2,472	)	$	(407	)	$	4,811

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 nine months ended September 30, 2017 and 2016:




	Three Months Ended September 30,						Affected Line Item in the Statement where Net Income is Presented
(in thousands)	2017			2016
Realized gains on AFS securities:
	$	19		$	1,354		Non-interest income
	(7		)	(474		)	Tax expense
Total reclassifications for the period	$	12		$	880		Net of tax




	Nine Months Ended September 30,						Affected Line Item in the Statement where Net Income is Presented
(in thousands)	2017			2016
Realized gains on AFS securities:
	$	19		$	4,489		Non-interest income
	(7		)	(1,571		)	Tax expense
Total reclassifications for the period	$	12		$	2,918		Net of tax