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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 9 Months Ended
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Sep. 30, 2018
Stockholders' Equity Note [Abstract] |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows:
|  | September 30, 2018 |  | Regulatory Minimum to be "Well Capitalized" |  | December 31, 2017 |  | Regulatory Minimum to be "Well Capitalized"
Company (consolidated) |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk weighted assets |  | 14.2 | % |  | N/A |  |  | 13.7 | % |  | N/A |
Common equity tier 1 capital to risk weighted assets |  | 11.7 |  |  | N/A |  |  | 11.3 |  |  | N/A |
Tier 1 capital to risk weighted assets |  | 12.6 |  |  | N/A |  |  | 12.2 |  |  | N/A |
Tier 1 capital to average assets |  | 8.4 |  |  | N/A |  |  | 8.1 |  |  | N/A |
Bank |  |  |  |  |  |  |  |
Total capital to risk weighted assets |  | 13.8 | % |  | 10.0 | % |  | 13.7 | % |  | 10.0 | %
Common equity tier 1 capital to risk weighted assets |  | 13.0 |  |  | 6.5 |  |  | 12.9 |  |  | 6.5 |
Tier 1 capital to risk weighted assets |  | 13.0 |  |  | 8.0 |  |  | 12.9 |  |  | 8.0 |
Tier 1 capital to average assets |  | 8.7 |  |  | 5.0 |  |  | 8.6 |  |  | 5.0 |
At each date shown, the Company 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. 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 and the Company and the Bank each exceed 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. Accordingly, banking organizations, on a fully phased in basis no later than January 1, 2019, 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 required minimum conservation buffer began to be phased in incrementally, starting at 0.625% on January 1, 2016 and increasing to 1.25% on January 1, 2017. The buffer increased to 1.875% on January 1, 2018 and will increase to 2.5% on January 1, 2019. 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 September 30, 2018, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and their 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, 2018 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 1.875%. Accumulated other comprehensive loss Components of accumulated other comprehensive (loss) income is as follows:
(in thousands) |  | September 30, 2018 |  | December 31, 2017
Other accumulated comprehensive loss, before tax: |  |  |  |  |  |
Net unrealized loss on AFS securities |  | $ | (22,380 | ) |  | $ | (2,741 | )
Net unrealized loss on effective cash flow hedging derivatives |  | (2,409 | ) |  | (3,588 | )
Net unrealized loss on post-retirement plans |  | (905 | ) |  | (946 | )
Income taxes related to items of accumulated other comprehensive loss: |  |  |  |
Net unrealized loss on AFS securities |  | 5,228 |  |  | 1,030 |
Net unrealized loss on effective cash flow hedging derivatives |  | 563 |  |  | 1,338 |
Net unrealized loss on post-retirement plans |  | 215 |  |  | 353 |
Accumulated other comprehensive loss |  | $ | (19,688 | ) |  | $ | (4,554 | )
The following table presents the components of other comprehensive income (loss) for the three months ended September 30, 2018 and 2017:
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Three Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |
Net unrealized loss on AFS securities: |  |  |  |  |  |  |
Net unrealized loss arising during the period |  | $ | (5,850 | ) |  | $ | 1,291 |  |  | $ | (4,559 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on AFS securities |  | (5,850 | ) |  | 1,291 |  |  | (4,559 | )
Net unrealized gain on derivative hedges: |  |  |  |  |  |
Net unrealized gain arising during the period |  | 299 |  |  | (81 | ) |  | 218 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on derivative hedges |  | 299 |  |  | (81 | ) |  | 218 |
Net unrealized gain on post-retirement plans: |  |  |  |  |  |
Net unrealized gain arising during the period |  | — |  |  | — |  |  | — |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on post-retirement plans |  | — |  |  | — |  |  | — |
Other comprehensive loss |  | $ | (5,551 | ) |  | $ | 1,210 |  |  | $ | (4,341 | )
Three Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |
Net unrealized gain on AFS securities: |  |  |  |  |  |  |  |
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 gain on AFS securities |  | 512 |  |  | (192 | ) |  | 320 |
Net unrealized loss on derivative hedges: |  |  |  |  |  |  |  |
Net unrealized loss arising during the period |  | (84 | ) |  | 31 |  |  | (53 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on derivative hedges |  | (84 | ) |  | 31 |  |  | (53 | )
Net unrealized (loss) gain on post-retirement plans: |  |  |  |  |  |  |  |  |
Net unrealized (loss) gain arising during the period |  | 5 |  |  | (2 | ) |  | 3 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized (loss) gain on post-retirement plans |  | 5 |  |  | (2 | ) |  | 3 |
Other comprehensive income |  | $ | 433 |  |  | $ | (163 | ) |  | $ | 270 |
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |
Net unrealized loss on AFS securities: |  |  |  |  |  |  |
Net unrealized loss arising during the period |  | $ | (19,639 | ) |  | $ | 4,565 |  |  | $ | (15,074 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on AFS securities |  | (19,639 | ) |  | 4,565 |  |  | (15,074 | )
Net unrealized gain on derivative hedges: |  |  |  |  |  |  |  |  |
Net unrealized gain arising during the period |  | 1,179 |  |  | (290 | ) |  | 889 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on derivative hedges |  | 1,179 |  |  | (290 | ) |  | 889 |
Net unrealized gain on post-retirement plans: |  |  |  |  |  |  |  |  |
Net unrealized gain arising during the period |  | 41 |  |  | (10 | ) |  | 31 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on post-retirement plans |  | 41 |  |  | (10 | ) |  | 31 |
Other comprehensive loss |  | $ | (18,419 | ) |  | $ | 4,265 |  |  | $ | (14,154 | )
Nine Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |
Net unrealized holding gain on AFS securities: |  |  |  |  |  |  |  |
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 loss on cash flow hedging derivatives |  | (805 | ) |  | 373 |  |  | (432 | )
Net unrealized holding gain 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 |
The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three months ended September 30, 2018 and 2017:
(in thousands) |  | Net unrealized holding (loss) 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, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (12,595 | ) |  | $ | (2,064 | ) |  | $ | (688 | ) |  | $ | (15,347 | )
Other comprehensive (loss) gain before reclassifications |  | (4,559 | ) |  | 218 |  |  | — |  |  | (4,341 | )
Less: amounts reclassified from accumulated other comprehensive income |  | — |  |  | — |  |  | — |  |  | — |
Total other comprehensive income (loss) |  | (4,559 | ) |  | 218 |  |  | — |  |  | (4,341 | )
Balance at end of period |  | $ | (17,154 | ) |  | $ | (1,846 | ) |  | $ | (688 | ) |  | $ | (19,688 | )
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 (loss) |  | 320 |  |  | (53 | ) |  | 3 |  |  | 270 |
Balance at end of period |  | $ | 1,156 |  |  | $ | (2,230 | ) |  | $ | (361 | ) |  | $ | (1,435 | )
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (1,713 | ) |  | $ | (2,250 | ) |  | $ | (591 | ) |  | $ | (4,554 | )
Other comprehensive (loss) gain before reclassifications |  | (15,074 | ) |  | 889 |  |  | 31 |  |  | (14,154 | )
Less: amounts reclassified from accumulated other comprehensive income |  | — |  |  | — |  |  | — |  |  | — |
Total other comprehensive loss |  | (15,074 | ) |  | 889 |  |  | 31 |  |  | (14,154 | )
Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 |  | (367 | ) |  | (485 | ) |  | (128 | ) |  | (980 | )
Balance at end of period |  | $ | (17,154 | ) |  | $ | (1,846 | ) |  | $ | (688 | ) |  | $ | (19,688 | )
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 | )
The Company did not have any reclassifications from any component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017.

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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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