CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY

The actual and required capital ratios are, as follows:



	March 31, 2019		Regulatory Minimum to be "Well Capitalized"		December 31, 2018		Regulatory Minimum to be "Well Capitalized"
Company (consolidated)
Total capital to risk-weighted assets	14.15	%	N/A		14.23	%	N/A
Common equity tier 1 capital to risk-weighted assets	11.76		N/A		11.80		N/A
Tier 1 capital to risk-weighted assets	12.63		N/A		12.68		N/A
Tier 1 capital to average assets	8.66		N/A		8.53		N/A

Bank
Total capital to risk-weighted assets	13.69	%	10.00	%	13.82	%	10.00	%
Common equity tier 1 capital to risk-weighted assets	12.88		6.50		12.99		6.50
Tier 1 capital to risk-weighted assets	12.88		8.00		12.99		8.00
Tier 1 capital to average assets	8.82		5.00		8.74		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.

The Company and the Bank are 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." Effective January 1, 2019 all banking organizations 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 final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met.

At March 31, 2019, 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.

Accumulated other comprehensive loss

Components of accumulated other comprehensive loss is, as follows:



(in thousands)	March 31, 2019			December 31, 2018
Other accumulated comprehensive loss, before tax:
Net unrealized loss on AFS securities	$	(2,404	)	$	(11,304	)
Net unrealized loss on effective cash flow hedging derivatives	(3,779		)	(2,934		)
Net unrealized loss on post-retirement plans	(1,162		)	(1,162		)

Income taxes related to items of accumulated other comprehensive loss:
Net unrealized loss on AFS securities	560			2,641
Net unrealized loss on effective cash flow hedging derivatives	883			685
Net unrealized loss on post-retirement plans	274			272
Accumulated other comprehensive loss	$	(5,628	)	$	(11,802	)

The following table presents the components of other comprehensive income (loss) for the three months ended March 31, 2019 and 2018:



(in thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended March 31, 2019
Net unrealized income on AFS securities:
Net unrealized income arising during the period	$	8,900		$	(2,079	)	$	6,821
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on AFS securities	8,900			(2,079		)	6,821

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period	(845		)	198			(647		)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized loss on cash flow hedging derivatives	(845		)	198			(647		)

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 income	$	8,055		$	(1,881	)	$	6,174

Three Months Ended March 31, 2018
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period	$	(10,702	)	$	2,550		$	(8,152	)
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized loss on AFS securities	(10,702		)	2,550			(8,152		)

Net unrealized gain on cash flow hedging derivatives:
Net unrealized gain arising during the period	654			(155		)	499
Less: reclassification adjustment for gains (losses) realized in net income	—			—			—
Net unrealized gain on cash flow hedging derivatives	654			(155		)	499

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	$	(10,007	)	$	2,385		$	(7,622	)

The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three months ended March 31, 2019 and 2018:



(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 March 31, 2019
Balance at beginning of period	$	(8,665	)	$	(2,249	)	$	(888	)	$	(11,802	)
Other comprehensive gain (loss) before reclassifications	6,821			(647		)	—			6,174
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive income (loss)	6,821			(647		)	—			6,174
Balance at end of period	$	(1,844	)	$	(2,896	)	$	(888	)	$	(5,628	)

Three Months Ended March 31, 2018
Balance at beginning of period	$	(1,713	)	$	(2,250	)	$	(591	)	$	(4,554	)
Other comprehensive (loss) gain before reclassifications	(8,152		)	499			31			(7,622		)
Less: amounts reclassified from accumulated other comprehensive income	—			—			—			—
Total other comprehensive (loss) income	(8,152		)	499			31			(7,622		)
Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02	(367		)	(485		)	(128		)	(980		)
Balance at end of period	$	(10,232	)	$	(2,236	)	$	(688	)	$	(13,156	)

The Company did not have any reclassifications from any component of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018.