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SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE | 12 Months Ended
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Dec. 31, 2019
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, 2019 and December 31, 2018 were as follows:
|  | 2019
|  | Actual |  | Regulatory Minimum to be "Well-Capitalized"
(in thousands, except ratios) |  | Amount |  | Ratio |  | Amount |  | Ratio
Company (consolidated) |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 341,492 |  |  | 13.61 | % |  | $ | 263,377 |  |  | 10.50 | %
Common equity tier 1 capital to risk-weighted assets |  | 265,205 |  |  | 10.57 |  |  | 175,584 |  |  | 7.00 |
Tier 1 capital to risk-weighted assets |  | 285,825 |  |  | 11.39 |  |  | 213,211 |  |  | 8.50 |
Tier 1 capital to average assets |  | 285,825 |  |  | 8.13 |  |  | 175,890 |  |  | 5.00 |
Bank |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 310,982 |  |  | 12.42 | % |  | $ | 262,999 |  |  | 10.50 | %
Common equity tier 1 capital to risk-weighted assets |  | 295,315 |  |  | 11.79 |  |  | 175,332 |  |  | 7.00 |
Tier 1 capital to risk-weighted assets |  | 295,315 |  |  | 11.79 |  |  | 212,904 |  |  | 8.50 |
Tier 1 capital to average assets |  | 295,315 |  |  | 8.39 |  |  | 175,996 |  |  | 5.00 |
|  | 2018
|  | Actual |  | Regulatory Minimum to be "Well-Capitalized"
(in thousands, except ratios) |  | Amount |  | Ratio |  | Amount |  | Ratio
Company (consolidated) |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 331,628 |  |  | 14.23 | % |  | $ | 230,093 |  |  | 9.88 | %
Common equity tier 1 capital to risk-weighted assets |  | 274,838 |  |  | 11.80 |  |  | 148,542 |  |  | 6.38 |
Tier 1 capital to risk-weighted assets |  | 295,458 |  |  | 12.68 |  |  | 183,492 |  |  | 7.88 |
Tier 1 capital to average assets |  | 295,458 |  |  | 8.53 |  |  | 173,102 |  |  | 5.00 |
Bank |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | $ | 321,390 |  |  | 13.82 | % |  | $ | 229,707 |  |  | 9.88 | %
Common equity tier 1 capital to risk-weighted assets |  | 302,220 |  |  | 12.99 |  |  | 148,292 |  |  | 6.38 |
Tier 1 capital to risk-weighted assets |  | 302,220 |  |  | 12.99 |  |  | 183,184 |  |  | 7.88 |
Tier 1 capital to average assets |  | 302,220 |  |  | 8.74 |  |  | 172,990 |  |  | 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 required regulatory minimum conservation buffer to be “well-capitalized” began to be phased-in incrementally, starting at 0.625% on January 1, 2016, 1.25% on January 1, 2017, 1.875% on January 1, 2018 and increased 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. Accumulated Other Comprehensive Income Components of accumulated other comprehensive income at December 31, 2019 and December 31, 2018 are as follows:
(in thousands) |  | 2019 |  | 2018
Other accumulated comprehensive income (loss), before tax: |  |  |  |
Net unrealized gain (loss) on AFS securities |  | $ | 7,342 |  |  | $ | (11,304 | )
Net unrealized loss on derivative hedges |  | (718 | ) |  | (2,934 | )
Net unrealized loss on post-retirement plans |  | (1,512 | ) |  | (1,162 | )
Income taxes related to items of accumulated other comprehensive (income) loss: |  |  |  |
Net unrealized (gain) loss on AFS securities |  | (1,793 | ) |  | 2,641 |
Net unrealized loss on derivative hedges |  | 237 |  |  | 685 |
Net unrealized loss on post-retirement plans |  | 355 |  |  | 272 |
Accumulated other comprehensive income (loss) |  | $ | 3,911 |  |  | $ | (11,802 | )
The following table presents the components of other comprehensive income in 2019, 2018 and 2017:
|  | 2019
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Net unrealized gain on AFS securities: |  |  |  |  |  |
Net unrealized gain arising during the period |  | $ | 18,883 |  |  | $ | (4,489 | ) |  | $ | 14,394 |
Less: reclassification adjustment for gains (losses) realized in net income |  | 237 |  |  | (55 | ) |  | 182 |
Net unrealized gain on AFS securities |  | 18,646 |  |  | (4,434 | ) |  | 14,212 |
Net unrealized loss on derivative hedges: |  |  |  |  |  |
Net unrealized loss arising during the period |  | (940 | ) |  | 289 |  |  | (651 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | (3,156 | ) |  | 737 |  |  | (2,419 | )
Net unrealized gain on derivative hedges |  | 2,216 |  |  | (448 | ) |  | 1,768 |
Net unrealized gain on post-retirement plans: |  |  |  |  |  |
Net unrealized gain arising during the period |  | (350 | ) |  | 83 |  |  | (267 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain on post-retirement plans |  | (350 | ) |  | 83 |  |  | (267 | )
Other comprehensive income |  | $ | 20,512 |  |  | $ | (4,799 | ) |  | $ | 15,713 |
|  | 2018
(in thousands) |  | Before Tax |  | Tax Effect |  | Net of Tax
Net unrealized loss on AFS securities: |  |  |  |  |  |
Net unrealized loss 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 loss on AFS securities |  | (8,563 | ) |  | 1,978 |  |  | (6,585 | )
Net unrealized gain on derivative hedges: |  |  |  |  |  |
Net unrealized gain arising during the period |  | 654 |  |  | (168 | ) |  | 486 |
Less: reclassification adjustment for gains (losses) realized in net income |  | — |  |  | — |  |  | — |
Net unrealized gain 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 gain on AFS securities: |  |  |  |  |  |
Net unrealized gain arising during the period |  | $ | 545 |  |  | $ | (121 | ) |  | $ | 424 |
Less: reclassification adjustment for gains (losses) realized in net income |  | 19 |  |  | (7 | ) |  | 12 |
Net unrealized gain 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 loss arising during the period |  | (347 | ) |  | 146 |  |  | (201 | )
Less: reclassification adjustment for gains (losses) realized in net income |  | (21 | ) |  | 8 |  |  | (13 | )
Net unrealized loss on post-retirement plans |  | (326 | ) |  | 138 |  |  | (188 | )
Other comprehensive loss |  | $ | (638 | ) |  | $ | 410 |  |  | $ | (228 | )
The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2019, 2018 and 2017:
|  | 2019
(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 |  | $ | (8,665 | ) |  | $ | (2,249 | ) |  | $ | (888 | ) |  | $ | (11,802 | )
Other comprehensive gain/(loss) before reclassifications |  | 14,394 |  |  | (651 | ) |  | (267 | ) |  | 13,476 |
Less: amounts reclassified from accumulated other comprehensive income |  | 182 |  |  | (2,419 | ) |  | — |  |  | (2,237 | )
Total other comprehensive loss |  | 14,212 |  |  | 1,768 |  |  | (267 | ) |  | 15,713 |
Balance at end of period |  | $ | 5,547 |  |  | $ | (481 | ) |  | $ | (1,155 | ) |  | $ | 3,911 |
|  | 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 | )
The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2019, 2018 and 2017:
(in thousands) |  | 2019 |  | 2018 |  | 2017 |  | Affected Line Item where Net Income is Presented
Realized gains on AFS securities: |  |  |  |  |  |  |  |
Before tax |  | $ | 237 |  |  | $ | (924 | ) |  | $ | 19 |  |  | Non-interest income
Tax effect |  | (55 | ) |  | 216 |  |  | (7 | ) |  | Tax expense
Total reclassifications for the period |  | $ | 182 |  |  | $ | (708 | ) |  | $ | 12 |  |  | Net of tax
(in thousands) |  | 2019 |  | 2018 |  | 2017 |  | Affected Line Item where Net Income is Presented
Realized loss on effective derivative hedges: |  |  |  |  |  |  |  |
Before tax |  | $ | (3,156 | ) |  | $ | — |  |  | $ | — |  |  | Non-interest expense
Tax effect |  | 737 |  |  | — |  |  | — |  |  | Tax benefit
Total reclassifications for the period |  | $ | (2,419 | ) |  | $ | — |  |  | $ | — |  |  | Net of tax
(in thousands) |  | 2019 |  | 2018 |  | 2017 |  | Affected Line Item where Net Income is Presented
Realized loss on post-retirement plans: |  |  |  |  |  |  |  |
Before tax |  | $ | — |  |  | $ | (29 | ) |  | $ | (21 | ) |  | Salaries and benefits
Tax effect |  | — |  |  | 7 |  |  | 8 |  |  | Tax benefit
Total reclassifications for the period |  | $ | — |  |  | $ | (22 | ) |  | $ | (13 | ) |  | 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) |  | 2019 |  | 2018 |  | 2017
Net income |  | $ | 22,620 |  |  | $ | 32,937 |  |  | $ | 25,993 |
Average number of basic common shares outstanding |  | 15,540,884 |  |  | 15,487,686 |  |  | 15,183,615 |
Plus: dilutive effect of stock options and awards outstanding |  | 46,109 |  |  | 76,778 |  |  | 106,795 |
Average number of diluted common shares outstanding |  | 15,586,993 |  |  | 15,564,464 |  |  | 15,290,410 |
Anti-dilutive options excluded from earnings calculation |  | — |  |  | 7,991 |  |  | 8,659 |
Earnings per share: |  |  |  |  |  |
Basic |  | $ | 1.46 |  |  | $ | 2.13 |  |  | $ | 1.71 |
Diluted |  | $ | 1.45 |  |  | $ | 2.12 |  |  | $ | 1.70 |

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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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