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SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE | 12 Months Ended
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Dec. 31, 2018
Stockholders' Equity Note [Abstract] |
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE | SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE The actual and required capital ratios at December 31, 2018 and December 31, 2017 were as follows:
|  | 2018
|  | Actual |  | Minimum Capital Requirement |  | Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions
(in thousands, except ratios) |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Company (consolidated) |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 331,628 |  |  | 14.23 | % |  | $ | 186,405 |  |  | 8.00 | % |  | $ | 244,656 |  |  | 10.00 | %
Common equity tier 1 capital to risk-weighted assets |  | 274,838 |  |  | 11.80 |  |  | 104,853 |  |  | 4.50 |  |  | 151,454 |  |  | 6.50 |
Tier 1 capital to risk-weighted assets |  | 295,458 |  |  | 12.68 |  |  | 139,803 |  |  | 6.00 |  |  | 186,404 |  |  | 8.00 |
Tier 1 capital to average assets |  | 295,458 |  |  | 8.53 |  |  | 138,482 |  |  | 4.00 |  |  | 173,102 |  |  | 5.00 |
Bank |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 321,390 |  |  | 13.82 | % |  | $ | 186,092 |  |  | 8.00 | % |  | $ | 244,246 |  |  | 10.00 | %
Common equity tier 1 capital to risk-weighted assets |  | 302,220 |  |  | 12.99 |  |  | 104,677 |  |  | 4.50 |  |  | 151,200 |  |  | 6.50 |
Tier 1 capital to risk-weighted assets |  | 302,220 |  |  | 12.99 |  |  | 139,569 |  |  | 6.00 |  |  | 186,092 |  |  | 8.00 |
Tier 1 capital to average assets |  | 302,220 |  |  | 8.74 |  |  | 138,392 |  |  | 4.00 |  |  | 172,990 |  |  | 5.00 |
|  | 2017
|  | Actual |  | Minimum Capital Requirement |  | Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions
(in thousands, except ratios) |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Company (consolidated) |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 307,305 |  |  | 13.73 | % |  | $ | 179,047 |  |  | 8.00 | % |  | $ | 234,999 |  |  | 10.50 | %
Common equity tier 1 capital to risk-weighted assets |  | 252,096 |  |  | 11.26 |  |  | 100,714 |  |  | 4.50 |  |  | 145,476 |  |  | 6.50 |
Tier 1 capital to risk-weighted assets |  | 272,716 |  |  | 12.19 |  |  | 134,286 |  |  | 6.00 |  |  | 179,047 |  |  | 8.00 |
Tier 1 capital to average assets |  | 272,716 |  |  | 8.10 |  |  | 134,758 |  |  | 4.00 |  |  | 168,447 |  |  | 5.00 |
Bank |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 306,495 |  |  | 13.71 | % |  | $ | 178,868 |  |  | 8.00 | % |  | $ | 234,764 |  |  | 10.50 | %
Common equity tier 1 capital to risk-weighted assets |  | 288,906 |  |  | 12.92 |  |  | 100,613 |  |  | 4.50 |  |  | 145,331 |  |  | 6.50 |
Tier 1 capital to risk-weighted assets |  | 288,906 |  |  | 12.92 |  |  | 134,151 |  |  | 6.00 |  |  | 178,868 |  |  | 8.00 |
Tier 1 capital to average assets |  | 288,906 |  |  | 8.58 |  |  | 134,702 |  |  | 4.00 |  |  | 168,378 |  |  | 5.00 |
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 December 31, 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 December 31, 2018 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 0.625%. Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss at December 31, 2018 and December 31, 2017 are as follows:
(in thousands) |  | 2018 |  | 2017
Other accumulated comprehensive loss, before tax: |  |  |  |
Net unrealized loss on AFS securities |  | $ | (11,304 | ) |  | $ | (2,741 | )
Net unrealized loss on derivative hedges |  | (2,934 | ) |  | (3,604 | )
Net unrealized loss on post-retirement plans |  | (1,162 | ) |  | (950 | )
Income taxes related to items of accumulated other comprehensive loss: |  |  |  |
Net unrealized loss on AFS securities |  | 2,641 |  |  | 1,030 |
Net unrealized loss on derivative hedges |  | 685 |  |  | 1,354 |
Net unrealized loss on post-retirement plans |  | 272 |  |  | 357 |
Accumulated other comprehensive loss |  | $ | (11,802 | ) |  | $ | (4,554 | )
The following table presents the components of other comprehensive income in 2018, 2017 and 2016:
|  | 2018
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Net unrealized gain on AFS securities: |  |  |  |  |  |
Net unrealized gain arising during the period |  | $ | (9,487 | ) |  | $ | 2,194 |  |  | $ | (7,293 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | (924 | ) |  | 216 |  |  | (708 | )
Net unrealized gain on AFS securities |  | (8,563 | ) |  | 1,978 |  |  | (6,585 | )
Net unrealized loss on derivative hedges: |  |  |  |  |  |
Net unrealized loss arising during the period |  | 654 |  |  | (168 | ) |  | 486 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on derivative hedges |  | 654 |  |  | (168 | ) |  | 486 |
Net unrealized loss on post-retirement plans: |  |  |  |  |  |
Net unrealized loss arising during the period |  | (245 | ) |  | 54 |  |  | (191 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | (29 | ) |  | 7 |  |  | (22 | )
Net unrealized loss on post-retirement plans |  | (216 | ) |  | 47 |  |  | (169 | )
Other comprehensive loss |  | $ | (8,125 | ) |  | $ | 1,857 |  |  | $ | (6,268 | )
|  | 2017
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Net unrealized loss on AFS securities: |  |  |  |  |  |
Net unrealized loss arising during the period |  | $ | 545 |  |  | $ | (121 | ) |  | $ | 424 |
Less: reclassification adjustment for gains (losses) realized in net income |  | 19 |  |  | (7 | ) |  | 12 |
Net unrealized loss on AFS securities |  | 526 |  |  | (114 | ) |  | 412 |
Net unrealized loss on derivative hedges: |  |  |  |  |  |
Net unrealized loss arising during the period |  | (838 | ) |  | 386 |  |  | (452 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on derivative hedges |  | (838 | ) |  | 386 |  |  | (452 | )
Net unrealized loss on post-retirement plans: |  |  |  |  |  |
Net unrealized gain arising during the period |  | (347 | ) |  | 146 |  |  | (201 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | (21 | ) |  | 8 |  |  | (13 | )
Net unrealized gain on post-retirement plans |  | (326 | ) |  | 138 |  |  | (188 | )
Other comprehensive loss |  | $ | (638 | ) |  | $ | 410 |  |  | $ | (228 | )
|  | 2016
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Net unrealized loss on AFS securities: |  |  |  |  |  |
Net unrealized loss arising during the period |  | $ | (7,561 | ) |  | $ | 2,647 |  |  | $ | (4,914 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | 4,498 |  |  | (1,574 | ) |  | 2,924 |
Net unrealized loss on AFS securities |  | (12,059 | ) |  | 4,221 |  |  | (7,838 | )
Net unrealized loss on derivative hedges: |  |  |  |  |  |
Net unrealized loss arising during the period |  | (272 | ) |  | 95 |  |  | (177 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on derivative hedges |  | (272 | ) |  | 95 |  |  | (177 | )
Net unrealized loss on post-retirement plans: |  |  |  |  |  |
Net unrealized gain arising during the period |  | 62 |  |  | (20 | ) |  | 42 |
Less: reclassification adjustment for gains (losses) realized in net income |  | (28 | ) |  | 10 |  |  | (18 | )
Net unrealized gain on post-retirement plans |  | 90 |  |  | (30 | ) |  | 60 |
Other comprehensive loss |  | $ | (12,241 | ) |  | $ | 4,286 |  |  | $ | (7,955 | )
The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2018, 2017 and 2016:
|  | 2018
(in thousands) |  | Net unrealized gain on AFS Securities |  | Net loss on effective derivative hedges |  | Net unrealized loss on post-retirement plans |  | Total
Balance at beginning of period |  | $ | (1,713 | ) |  | $ | (2,250 | ) |  | $ | (591 | ) |  | $ | (4,554 | )
Other comprehensive gain/(loss) before reclassifications |  | (7,293 | ) |  | 486 |  |  | (191 | ) |  | (6,998 | )
Less: amounts reclassified from accumulated other comprehensive income |  | (708 | ) |  | — |  |  | (22 | ) |  | (730 | )
Total other comprehensive loss |  | (6,585 | ) |  | 486 |  |  | (169 | ) |  | (6,268 | )
Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 |  | (367 | ) |  | (485 | ) |  | (128 | ) |  | (980 | )
Balance at end of period |  | $ | (8,665 | ) |  | $ | (2,249 | ) |  | $ | (888 | ) |  | $ | (11,802 | )
|  | 2017
(in thousands) |  | Net unrealized gain on AFS Securities |  | Net loss on effective derivative hedges |  | Net unrealized loss on post-retirement plans |  | Total
Balance at beginning of period |  | $ | (2,125 | ) |  | $ | (1,798 | ) |  | $ | (403 | ) |  | $ | (4,326 | )
Other comprehensive gain/(loss) before reclassifications |  | 424 |  |  | (452 | ) |  | (201 | ) |  | (229 | )
Less: amounts reclassified from accumulated other comprehensive income |  | 12 |  |  | — |  |  | (13 | ) |  | (1 | )
Total other comprehensive loss |  | 412 |  |  | (452 | ) |  | (188 | ) |  | (228 | )
Balance at end of period |  | $ | (1,713 | ) |  | $ | (2,250 | ) |  | $ | (591 | ) |  | $ | (4,554 | )
|  | 2016
(in thousands) |  | Net unrealized gain on AFS Securities |  | Net loss on effective derivative hedges |  | Net unrealized loss on post-retirement plans |  | Total
Balance at beginning of period |  | $ | 5,713 |  |  | $ | (1,621 | ) |  | $ | (463 | ) |  | $ | 3,629 |
Other comprehensive gain/(loss) before reclassifications |  | (4,914 | ) |  | (177 | ) |  | 42 |  |  | (5,049 | )
Less: amounts reclassified from accumulated other comprehensive income |  | 2,924 |  |  | — |  |  | (18 | ) |  | 2,906 |
Total other comprehensive loss |  | (7,838 | ) |  | (177 | ) |  | 60 |  |  | (7,955 | )
Balance at end of period |  | $ | (2,125 | ) |  | $ | (1,798 | ) |  | $ | (403 | ) |  | $ | (4,326 | )
The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2018, 2017 and 2016:
(in thousands) |  | 2018 |  | 2017 |  | 2016 |  | Affected Line Item where Net Income is Presented
Realized gains on AFS securities: |  |  |  |  |  |  |  |
Before tax |  | $ | (924 | ) |  | $ | 19 |  |  | $ | 4,498 |  |  | Non-interest income
Tax effect |  | 216 |  |  | (7 | ) |  | (1,574 | ) |  | Tax expense
Total reclassifications for the period |  | $ | (708 | ) |  | $ | 12 |  |  | $ | 2,924 |  |  | Net of tax
(in thousands) |  | 2018 |  | 2017 |  | 2016 |  | Affected Line Item where Net Income is Presented
Realized loss on post-retirement plans: |  |  |  |  |  |  |  |
Before tax |  | $ | (29 | ) |  | $ | (21 | ) |  | $ | (28 | ) |  | Salaries and benefits
Tax effect |  | 7 |  |  | 8 |  |  | 10 |  |  | Tax benefit
Total reclassifications for the period |  | $ | (22 | ) |  | $ | (13 | ) |  | $ | (18 | ) |  | Net of tax
Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method):
(in thousands, except per share and share data) |  | 2018 |  | 2017 |  | 2016
Net income |  | $ | 32,937 |  |  | $ | 25,993 |  |  | $ | 14,933 |
Average number of basic common shares outstanding |  | 15,487,686 |  |  | 15,183,615 |  |  | 9,068,624 |
Plus: dilutive effect of stock options and awards outstanding |  | 76,778 |  |  | 106,795 |  |  | 74,029 |
Average number of diluted common shares outstanding |  | 15,564,464 |  |  | 15,290,410 |  |  | 9,142,653 |
Anti-dilutive options excluded from earnings calculation |  | 7,991 |  |  | 8,659 |  |  | 90,249 |
Earnings per share: |  |  |  |  |  |
Basic |  | $ | 2.13 |  |  | $ | 1.71 |  |  | $ | 1.65 |
Diluted |  | $ | 2.12 |  |  | $ | 1.70 |  |  | $ | 1.63 |

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- References No definition available. + Details
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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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