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 and each of the three- month periods ended March 31, 2013, June 30, 2013 and September 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)
Other comprehensive income/(loss) before reclassifications		528		(702)		42		358		0		226
Amounts reclassified from accumulated other comprehensive income		(84)		62		0		76		4		58
Balance - September 30,2013	$	(8,184)	$	(9,335)	$	(327)	$	(7,737)	$	(41)	$	(25,624)

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


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the nine months ended September 30, 2013
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	3,500	$	(1,405)	$	2,095
Less: accretable yield recognized in income		406		(163)		243
Net unrealized gains on investments with OTTI		3,094		(1,242)		1,852

Available for sale securities – all other:
Unrealized holding losses		(10,520)		4,225		(6,295)
Less: gains recognized in income		124		(50)		74
Net unrealized losses on all other AFS securities		(10,644)		4,275		(6,369)

Cash flow hedges:
Unrealized holding gains		301		(121)		180

Pension Plan:
Unrealized net actuarial gain		499		(200)		299
Less: amortization of unrecognized loss		(399)		160		(239)
Less: amortization of transition asset		30		(12)		18
Less: amortization of prior service costs		(9)		4		(5)
Net pension plan liability adjustment		877		(352)		525

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized loss		(3)		1		(2)
Less: amortization of prior service costs		(15)		6		(9)
Net SERP liability adjustment		18		(7)		11
Other comprehensive loss	$	(6,354)	$	2,553	$	(3,801)

For the nine months ended September 30, 2012
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	692	$	(312)	$	380
Less: accretable yield recognized in income		346		(139)		207
Net unrealized gains on investments with OTTI		346		(173)		173

Available for sale securities – all other:
Unrealized holding gains		2,077		(843)		1,234
Less: gains recognized in income		562		(227)		335
Net unrealized gains on all other AFS securities		1,515		(616)		899

Cash flow hedges:
Unrealized holding gains		88		(36)		52

Other comprehensive income	$	1,949	$	(825)	$	1,124


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended September 30, 2013
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	882	$	(354)	$	528
Less: accretable yield recognized in income		140		(56)		84
Net unrealized gains on investments with OTTI		742		(298)		444

Available for sale securities – all other:
Unrealized holding losses		(1,174)		472		(702)
Less: gains recognized in income		(103)		41		(62)
Net unrealized losses on all other AFS securities		(1,071)		431		(640)

Cash flow hedges:
Unrealized holding gains		71		(29)		42

Pension Plan:
Unrealized net actuarial loss		599		(241)		358
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		725		(291)		434

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized loss		(1)		0		(1)
Less: amortization of prior service costs		(5)		2		(3)
Net SERP liability adjustment		6		(2)		4
Other comprehensive income	$	473	$	(189)	$	284

For the three months ended September 30, 2012
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	511	$	(239)	$	272
Less: accretable yield recognized in income		122		(49)		73
Net unrealized gains on investments with OTTI		389		(190)		199

Available for sale securities – all other:
Unrealized holding gains		1,102		(450)		652
Less: losses recognized in income		(37)		15		(22)
Net unrealized gains on all other AFS securities		1,139		(465)		674

Cash flow hedges:
Unrealized holding gains		9		(4)		5

Other comprehensive income	$	1,537	$	(659)	$	878

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


	Amount Reclassified from Accumulated Other Comprehensive Income
Details of Accumulated Other Comprehensive Income Components (in thousands)	For the nine months ended September 30, 2013		For the three months ended September 30, 2013		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on investment securities with OTTI:
Accretable Yield	$	406	$	140	Interest income on taxable investment securities
Taxes		(163)		(56)	Tax expense
	$	243	$	84	Net of tax
Unrealized gains and losses on available for sale investment securities - all others:
Gains/(losses) on sales	$	124	$	(103)	Net gains - other
Taxes		(50)		41	(Tax expense)/benefit
	$	74	$	(62)	Net of tax

Net pension plan liability adjustment:
Amortization of unrecognized loss		(399)		(133)	Salaries and employee benefits
Amortization of transition asset		30		10	Salaries and employee benefits
Amortization of prior service costs		(9)		(3)	Salaries and employee benefits
Taxes		152		50	Tax benefit
	$	(226)	$	(76)
Net SERP liability adjustment:
Amortization of unrecognized loss		(3)		(1)	Salaries and employee benefits
Amortization of prior service costs		(15)		(5)	Salaries and employee benefits
Taxes		7		2	Tax benefit
	$	(11)	$	(4)

Total reclassifications for the period	$	80	$	(58)	Net of tax