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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 9 Months Ended
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Sep. 30, 2019
Stockholders' Equity Note [Abstract] |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios are, as follows:
|  | September 30, 2019 |  | Regulatory Minimum to be "Well Capitalized" |  | December 31, 2018 |  | Regulatory Minimum to be "Well Capitalized"
Company (consolidated) |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | 14.01 | % |  | N/A |  |  | 14.23 | % |  | N/A |
Common equity tier 1 capital to risk-weighted assets |  | 11.63 |  |  | N/A |  |  | 11.80 |  |  | N/A |
Tier 1 capital to risk-weighted assets |  | 12.47 |  |  | N/A |  |  | 12.68 |  |  | N/A |
Tier 1 capital to average assets |  | 8.65 |  |  | N/A |  |  | 8.53 |  |  | N/A |
Bank |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | 13.45 | % |  | 10.00 | % |  | 13.82 | % |  | 10.00 | %
Common equity tier 1 capital to risk-weighted assets |  | 12.60 |  |  | 6.50 |  |  | 12.99 |  |  | 6.50 |
Tier 1 capital to risk-weighted assets |  | 12.60 |  |  | 8.00 |  |  | 12.99 |  |  | 8.00 |
Tier 1 capital to average assets |  | 8.74 |  |  | 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 September 30, 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 income (loss) Components of accumulated other comprehensive income (loss) is, as follows:
(in thousands) |  | September 30, 2019 |  | December 31, 2018
Other accumulated comprehensive income (loss), before tax: |  |  |  |  |  |
Net unrealized gain (loss) on AFS securities |  | $ | 10,442 |  |  | $ | (11,304 | )
Net unrealized loss on effective cash flow hedging derivatives |  | (5,306 | ) |  | (2,934 | )
Net unrealized loss on post-retirement plans |  | (1,162 | ) |  | (1,162 | )
Income taxes related to items of accumulated other comprehensive (income) loss: |  |  |  |
Net unrealized (gain) loss on AFS securities |  | (2,440 | ) |  | 2,641 |
Net unrealized loss on effective cash flow hedging derivatives |  | 1,239 |  |  | 685 |
Net unrealized loss on post-retirement plans |  | 272 |  |  | 272 |
Accumulated other comprehensive income (loss) |  | $ | 3,045 |  |  | $ | (11,802 | )
The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2019 and 2018:
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Three Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |
Net unrealized gain on AFS securities: |  |  |  |  |  |  |
Net unrealized gain arising during the period |  | $ | 3,357 |  |  | $ | (784 | ) |  | $ | 2,573 |
Less: reclassification adjustment for gains (losses) realized in net income |  | 157 |  |  | (37 | ) |  | 120 |
Net unrealized gain on AFS securities |  | 3,200 |  |  | (747 | ) |  | 2,453 |
Net unrealized loss on cash flow hedging derivatives: |  |  |  |  |  |
Net unrealized loss arising during the period |  | (370 | ) |  | 85 |  |  | (285 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on cash flow hedging derivatives |  | (370 | ) |  | 85 |  |  | (285 | )
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 |  | $ | 2,830 |  |  | $ | (662 | ) |  | $ | 2,168 |
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 cash flow hedging derivatives: |  |  |  |  |  |  |  |
Net unrealized gain arising during the period |  | 299 |  |  | (81 | ) |  | 218 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on cash flow hedging derivatives |  | 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 | )
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |
Net unrealized gain on AFS securities: |  |  |  |  |  |  |
Net unrealized gain arising during the period |  | $ | 21,903 |  |  | $ | (5,118 | ) |  | $ | 16,785 |
Less: reclassification adjustment for gains (losses) realized in net income |  | 157 |  |  | (37 | ) |  | 120 |
Net unrealized gain on AFS securities |  | 21,746 |  |  | (5,081 | ) |  | 16,665 |
Net unrealized loss on derivative hedges: |  |  |  |  |  |  |  |  |
Net unrealized loss arising during the period |  | (2,372 | ) |  | 554 |  |  | (1,818 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized loss on derivative hedges |  | (2,372 | ) |  | 554 |  |  | (1,818 | )
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 |  | $ | 19,374 |  |  | $ | (4,527 | ) |  | $ | 14,847 |
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 cash flow hedging derivatives: |  |  |  |  |  |  |  |
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 cash flow hedging derivatives |  | 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 | )
The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three and nine months ended September 30, 2019 and 2018:
(in thousands) |  | Net unrealized (loss) gain on AFS Securities |  | Net loss on effective cash flow hedging derivatives |  | Net unrealized loss on pension plans |  | Total
Three Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 5,547 |  |  | $ | (3,782 | ) |  | $ | (888 | ) |  | $ | 877 |
Other comprehensive gain (loss) before reclassifications |  | 2,573 |  |  | (285 | ) |  | — |  |  | 2,288 |
Less: amounts reclassified from accumulated other comprehensive income |  | 120 |  |  | — |  |  | — |  |  | 120 |
Total other comprehensive income (loss) |  | 2,453 |  |  | (285 | ) |  | — |  |  | 2,168 |
Balance at end of period |  | $ | 8,000 |  |  | $ | (4,067 | ) |  | $ | (888 | ) |  | $ | 3,045 |
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 (loss) income |  | (4,559 | ) |  | 218 |  |  | — |  |  | (4,341 | )
Balance at end of period |  | $ | (17,154 | ) |  | $ | (1,846 | ) |  | $ | (688 | ) |  | $ | (19,688 | )
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (8,665 | ) |  | $ | (2,249 | ) |  | $ | (888 | ) |  | $ | (11,802 | )
Other comprehensive gain (loss) before reclassifications |  | 16,785 |  |  | (1,818 | ) |  | — |  |  | 14,967 |
Less: amounts reclassified from accumulated other comprehensive income |  | 120 |  |  | — |  |  | — |  |  | 120 |
Total other comprehensive income (loss) |  | 16,665 |  |  | (1,818 | ) |  | — |  |  | 14,847 |
Balance at end of period |  | $ | 8,000 |  |  | $ | (4,067 | ) |  | $ | (888 | ) |  | $ | 3,045 |
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) income |  | (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 | )
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, 2019 and 2018:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  | Affected Line Item where Net Income is Presented
(in thousands) |  | 2019 |  | 2018 |  | 2019 |  | 2018 |
Net realized gains on AFS securities: |  |  |  |  |  |  |  |  |  |
Before tax(1) |  | $ | 157 |  |  | $ | — |  |  | $ | 157 |  |  | $ | — |  |  | Non-interest income
Tax effect |  | (37 | ) |  | — |  |  | (37 | ) |  | — |  |  | Tax expense
Total reclassifications for the period |  | $ | 120 |  |  | $ | — |  |  | $ | 120 |  |  | $ | — |  |  | Net of tax
(1) Net realized gains before tax include gross realized gains $716 thousand and realized losses of $559 thousand.

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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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