Note 9 – Accumulated Other Comprehensive Loss

The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2012 the three months ended March 31, 2013 and the three months ended June 30, 2013:



	Investment		Investment
	securities-		securities-		Cash Flow		Pension
(in thousands)	with OTTI		all other		Hedge		Plan		SERP		Total
Accumulated OCL, net:
Balance - January 1, 2012	$	(10,572)	$	(2,633)	$	(616)	$	(6,945)	$	(196)	$	(20,962)
Net gain/(loss) during period		536		(333)		109		(1,317)		144		(861)
Balance - December 31, 2012	$	(10,036)	$	(2,966)	$	(507)	$	(8,262)	$	(52)	$	(21,823)
Other comprehensive income/(loss) before reclassifications		1,070		(116)		60		639		0		1,653
Amounts reclassified from accumulated other comprehensive income		(75)		(149)		0		76		4		(144)
Balance – March 31, 2013	$	(9,041)	$	(3,231)	$	(447)	$	(7,547)	$	(48)	$	(20,314)
Other comprehensive income/(loss) before reclassifications		497		(5,477)		78		(700)		0		(5,602)
Amounts reclassified from accumulated other comprehensive income		(84)		13		0		76		3		8
Balance – June 30, 2013	$	(8,628)	$	(8,695)	$	(369)	$	(8,171)	$	(45)	$	(25,908)

The following table presents the components of comprehensive income for the six- and three- months ended June 30, 2013 and 2012:


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the six months ended June 30, 2013
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	2,618	$	(1,051)	$	1,567
Less: accretable yield recognized in income		265		(106)		159
Net unrealized gains on investments with OTTI		2,353		(945)		1,408

Available for sale securities – all other:
Unrealized holding losses		(9,348)		3,755		(5,593)
Less: gains recognized in income		227		(91)		136
Net unrealized losses on all other AFS securities		(9,575)		3,846		(5,729)

Cash flow hedges:
Unrealized holding gains		230		(92)		138

Pension Plan:
Unrealized net actuarial loss		(100)		39		(61)
Less: amortization of unrecognized loss		(266)		106		(160)
Less: amortization of transition asset		20		(8)		12
Less: amortization of prior service costs		(6)		2		(4)
Net pension plan liability adjustment		152		(61)		91

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized loss		(2)		1		(1)
Less: amortization of prior service costs		(10)		4		(6)
Net SERP liability adjustment		12		(5)		7
Other comprehensive loss	$	(6,828)	$	2,743	$	(4,085)

For the six months ended June 30, 2012
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	181	$	(73)	$	108
Less: accretable yield recognized in income		224		(90)		134
Net unrealized gains on investments with OTTI		(43)		17		(26)

Available for sale securities – all other:
Unrealized holding gains		975		(393)		582
Less: gains recognized in income		599		(242)		357
Net unrealized gains on all other AFS securities		376		(151)		225

Cash flow hedges:
Unrealized holding gains		79		(32)		47

Other comprehensive income	$	412	$	(166)	$	246


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended June 30, 2013
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	830	$	(333)	$	497
Less: accretable yield recognized in income		139		(55)		84
Net unrealized gains on investments with OTTI		691		(278)		413

Available for sale securities – all other:
Unrealized holding losses		(9,154)		3,677		(5,477)
Less: gains recognized in income		(23)		10		(13)
Net unrealized losses on all other AFS securities		(9,131)		3,667		(5,464)

Cash flow hedges:
Unrealized holding gains		129		(51)		78

Pension Plan:
Unrealized net actuarial loss		(1,169)		469		(700)
Less: amortization of unrecognized loss		(133)		53		(80)
Less: amortization of transition asset		10		(4)		6
Less: amortization of prior service costs		(3)		1		(2)
Net pension plan liability adjustment		(1,043)		419		(624)

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized loss		(1)		0		(1)
Less: amortization of prior service costs		(5)		3		(2)
Net SERP liability adjustment		6		(3)		3
Other comprehensive loss	$	(9,348)	$	3,754	$	(5,594)

For the three months ended June 30, 2012
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	(259)	$	105	$	(154)
Less: accretable yield recognized in income		112		(45)		67
Net unrealized losses on investments with OTTI		(371)		150		(221)

Available for sale securities – all other:
Unrealized holding gains		582		(236)		346
Less: gains recognized in income		0		0		0
Net unrealized gains on all other AFS securities		582		(236)		346

Cash flow hedges:
Unrealized holding gains		33		(13)		20

Other comprehensive income	$	244	$	(99)	$	145

The following table presents the details of accumulated other comprehensive income components for the three- and six-month periods ended June 30, 2013:


	Amount Reclassified from Accumulated Other Comprehensive Income
Details of Accumulated Other Comprehensive Income Components (in thousands)	For the six months ended June 30, 2013		For the three months ended June 30, 2013		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on investment securities with OTTI:
Accretable Yield	$	264	$	139	Interest income on taxable investment securities
Taxes		(105)		(55)	Tax expense
	$	159	$	84	Net of tax
Unrealized gains and losses on available for sale investment securities - all others:
Gains/(losses) on sales	$	227	$	(23)	Net gains - other
Taxes		(91)		10	(Tax expense)/benefit
	$	136	$	(13)	Net of tax

Net pension plan liability adjustment:
Amortization of unrecognized loss		(266)		(133)	Salaries and employee benefits
Amortization of transition asset		20		10	Salaries and employee benefits
Amortization of prior service costs		(6)		(3)	Salaries and employee benefits
Taxes		100		50	Tax benefit
	$	(152)	$	(76)
Net SERP liability adjustment:
Amortization of unrecognized loss		(2)		(1)	Salaries and employee benefits
Amortization of prior service costs		(10)		(5)	Salaries and employee benefits
Taxes		5		3	Tax benefit
	$	(7)	$	(3)

Total reclassifications for the period	$	136	$	(8)	Net of tax