Note 10 – 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, 2013 and each of the three- month periods ended March 31, 2014 and June 30, 2014:



(in thousands)	Investment securities- with OTTI AFS		Investment securities- all other AFS			Investment securities- HTM	Cash Flow Hedge		Pension Plan		SERP		Total
Accumulated OCL, net:
Balance - January 1, 2013	$	(10,036)	$	(2,966)	$	0	$	(507)	$	(8,262)	$	(52)	$	(21,823)
Other comprehensive income/(loss) before reclassifications		2,735		(8,279)		0		233		2,871		102		(2,338)
Amounts reclassified from accumulated other comprehensive income		(322)		(47)		0		0		303		14		(52)
Balance - December 31, 2013	$	(7,623)	$	(11,292)	$	0	$	(274)	$	(5,088)	$	64	$	(24,213)
Other comprehensive income/(loss) before reclassifications		2,730		2,995		0		55		(179)		0		5,601
Amounts reclassified from accumulated other comprehensive income		(96)		41		0		0		52		1		(2)
Balance – March 31, 2014	$	(4,989)	$	(8,256)	$	0	$	(219)	$	(5,215)	$	65	$	(18,614)
Other comprehensive income/(loss) before reclassifications		511		5,254		(2,391)		56		112		0		3,542
Amounts reclassified from accumulated other comprehensive income		(103)		52		19		0		52		0		20
Balance – June 30, 2014	$	(4,581)	$	(2,950)	$	(2,372)	$	(163)	$	(5,051)	$	65	$	(15,052)

The following tables present the components of comprehensive income for the six- and three- months ended June 30, 2014 and 2013:


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the six months ended June 30, 2014
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	5,401	$	(2,160)	$	3,241
Less: accretable yield recognized in income		331		(132)		199
Net unrealized gains on investments with OTTI		5,070		(2,028)		3,042

Available for sale securities – all other:
Unrealized holding gains		13,743		(5,494)		8,249
Less: losses recognized in income		(154)		61		(93)
Net unrealized gains on all other AFS securities		13,897		(5,555)		8,342

Held to maturity securities:
Unrealized holding losses		(3,984)		1,593		(2,391)
Less: amortization recognized in income		(32)		13		(19)
Net unrealized losses on HTM securities		(3,952)		1,580		(2,372)

Cash flow hedges:
Unrealized holding gains		185		(74)		111

Pension Plan:
Unrealized net actuarial loss		(112)		45		(67)
Less: amortization of unrecognized loss		(187)		75		(112)
Less: amortization of transition asset		20		(8)		12
Less: amortization of prior service costs		(6)		2		(4)
Net pension plan liability adjustment		61		(24)		37

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized gain		9		(4)		5
Less: amortization of prior service costs		(10)		4		(6)
Net SERP liability adjustment		1		0		1
Other comprehensive income	$	15,262	$	(6,101)	$	9,161


Components of Comprehensive Income/(Loss) (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)


Components of Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended June 30, 2014
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	852	$	(341)	$	511
Less: accretable yield recognized in income		171		(68)		103
Net unrealized gains on investments with OTTI		681		(273)		408

Available for sale securities – all other:
Unrealized holding gains		8,753		(3,499)		5,254
Less: losses recognized in income		(86)		34		(52)
Net unrealized gains on all other AFS securities		8,839		(3,533)		5,306

Held to maturity securities:
Unrealized holding losses		(3,984)		1,593		(2,391)
Less: amortization recognized in income		(32)		13		(19)
Net unrealized losses on HTM securities		(3,952)		1,580		(2,372)

Cash flow hedges:
Unrealized holding gains		93		(37)		56

Pension Plan:
Unrealized net actuarial gain		186		(74)		112
Less: amortization of unrecognized loss		(94)		38		(56)
Less: amortization of transition asset		10		(4)		6
Less: amortization of prior service costs		(3)		1		(2)
Net pension plan liability adjustment		273		(109)		164

SERP:
Unrealized net actuarial loss		0		0		0
Less: amortization of unrecognized gain		5		(1)		4
Less: amortization of prior service costs		(5)		1		(4)
Net SERP liability adjustment		0		0		0
Other comprehensive income	$	5,934	$	(2,372)	$	3,562


Components of Comprehensive Income/(Loss) (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)

The following table presents the details of accumulated other comprehensive income components for the six- and three-month periods ended June 30, 2014:


	Amount Reclassified from Accumulated Other Comprehensive Income
Details of Accumulated Other Comprehensive Income Components (in thousands)	For the six months ended June 30, 2014		For the three months ended June 30, 2014		Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on investment securities with OTTI:
Accretable Yield	$	331	$	171	Interest income on taxable investment securities
Taxes		(132)		(68)	Tax expense
	$	199	$	103	Net of tax
Unrealized gains and losses on available for sale investment securities - all others:
Losses on sales	$	(154)	$	(86)	Net gains - other
Taxes		61		34	Tax benefit
	$	(93)	$	(52)	Net of tax
Unrealized gains and losses on held to maturity securities:
Amortization	$	(32)	$	(32)	Interest income on taxable investment securities
Taxes		13		13	Tax expense
	$	(19)	$	(19)	Net of tax

Net pension plan liability adjustment:
Amortization of unrecognized loss		(187)		(94)	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		69		35	Tax benefit
	$	(104)	$	(52)	Net of tax
Net SERP liability adjustment:
Amortization of unrecognized gain		9		5	Salaries and employee benefits
Amortization of prior service costs		(10)		(5)	Salaries and employee benefits
Taxes		0		0	Tax benefit
	$	(1)	$	0	Net of tax

Total reclassifications for the period	$	(18)	$	(20)	Net of tax