Note 8 – 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, 2018 and the three-month periods ended March 31, 2019, June 30, 2019 and September 30, 2019:



(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, 2018	$	(2,939)	$	(2,979)	$	(1,347)	$	582	$	(17,066)	$	(844)	$	(24,593)
Other comprehensive income/(loss) before reclassifications		1,194		(540)		—		191		(1,833)		202		(786)
Amounts reclassified from accumulated other comprehensive loss		(154)		(82)		216		—		882		114		976
Balance – December 31, 2018	$	(1,899)	$	(3,601)	$	(1,131)	$	773	$	(18,017)	$	(528)	$	(24,403)
Other comprehensive income/(loss) before reclassifications		(44)		901		—		(315)		1,933		—		2,475
Amounts reclassified from accumulated other comprehensive loss		(36)		4		55		—		196		21		240
Balance - March 31, 2019	$	(1,979)	$	(2,696)	$	(1,076)	$	458	$	(15,888)	$	(507)	$	(21,688)
Other comprehensive income/(loss) before reclassifications		(157)		1,581		—		(486)		511		—		1,449
Amounts reclassified from accumulated other comprehensive loss		(37)		(4)		63		—		196		21		239
Balance - June 30, 2019	$	(2,173)	$	(1,119)	$	(1,013)	$	(28)	$	(15,181)	$	(486)	$	(20,000)
Other comprehensive income/(loss) before reclassifications		(820)		403		—		(239)		(75)		—		(731)
Amounts reclassified from accumulated other comprehensive loss		(37)		(1)		60		—		196		20		238
Balance - September 30, 2019	$	(3,030)	$	(717)	$	(953)	$	(267)	$	(15,060)	$	(466)	$	(20,493)

The following tables present the components of other comprehensive income/(loss) for the nine- and three-month periods ended September 30, 2019 and 2018:



Components of Other Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the nine months ended September 30, 2019
Available for sale (AFS) securities with OTTI:
Unrealized holding losses	$	(1,401)	$	380	$	(1,021)
Less: accretable yield recognized in income		149		(39)		110
Net unrealized losses on investments with OTTI		(1,550)		419		(1,131)
Available for sale securities – all other:
Unrealized holding gains		3,957		(1,072)		2,885
Less: gains recognized in income		1		—		1
Net unrealized gains on all other AFS securities		3,956		(1,072)		2,884
Held to maturity securities:
Unrealized holding gains		—		—		—
Less: amortization recognized in income		(243)		65		(178)
Net unrealized gains on HTM securities		243		(65)		178
Cash flow hedges:
Unrealized holding losses		(1,427)		387		(1,040)
Pension Plan:
Unrealized net actuarial gain		3,250		(881)		2,369
Less: amortization of unrecognized loss		(807)		219		(588)
Net pension plan liability adjustment		4,057		(1,100)		2,957
SERP:
Unrealized net actuarial loss		—		—		—
Less: amortization of unrecognized loss		(87)		23		(64)
Less: amortization of prior service costs		2		—		2
Net SERP liability adjustment		85		(23)		62
Other comprehensive income	$	5,364	$	(1,454)	$	3,910


Components of Other Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the nine months ended September 30, 2018
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	2,842	$	(768)	$	2,074
Less: gains recognized in income		145		(39)		106
Less: accretable yield recognized in income		160		(43)		117
Net unrealized gains on investments with OTTI		2,537		(686)		1,851
Available for sale securities – all other:
Unrealized holding losses		(2,733)		739		(1,994)
Less: losses recognized in income		(29)		8		(21)
Net unrealized losses on all other AFS securities		(2,704)		731		(1,973)
Held to maturity securities:
Unrealized holding gains		—		—		—
Less: amortization recognized in income		(200)		54		(146)
Net unrealized gains on HTM securities		200		(54)		146
Cash flow hedges:
Unrealized holding gains		908		(245)		663
Pension Plan:
Unrealized net actuarial loss		(1,206)		326		(880)
Less: amortization of unrecognized loss		(900)		244		(656)
Less: amortization of prior service costs		(6)		2		(4)
Net pension plan liability adjustment		(300)		80		(220)
SERP:
Less: amortization of unrecognized loss		(121)		33		(88)
Less: amortization of prior service costs		2		(1)		1
Net SERP liability adjustment		119		(32)		87
Other comprehensive income	$	760	$	(206)	$	554



Components of Other Comprehensive Loss (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended September 30, 2019
Available for sale (AFS) securities with OTTI:
Unrealized holding losses	$	(1,126)	$	306	$	(820)
Less: accretable yield recognized in income		50		(13)		37
Net unrealized losses on investments with OTTI		(1,176)		319		(857)
Available for sale securities – all other:
Unrealized holding gains		552		(149)		403
Less: gains recognized in income		1		—		1
Net unrealized gains on all other AFS securities		551		(149)		402
Held to maturity securities:
Unrealized holding gains		—		—		—
Less: amortization recognized in income		(82)		22		(60)
Net unrealized gains on HTM securities		82		(22)		60
Cash flow hedges:
Unrealized holding losses		(329)		90		(239)
Pension Plan:
Unrealized net actuarial loss		(103)		28		(75)
Less: amortization of unrecognized loss		(269)		73		(196)
Net pension plan liability adjustment		166		(45)		121
SERP:
Unrealized net actuarial loss		—		—		—
Less: amortization of unrecognized loss		(29)		8		(21)
Less: amortization of prior service costs		1		—		1
Net SERP liability adjustment		28		(8)		20
Other comprehensive loss	$	(678)	$	185	$	(493)



Components of Other Comprehensive Income (in thousands)	Before Tax Amount		Tax (Expense) Benefit		Net
For the three months ended September 30, 2018
Available for sale (AFS) securities with OTTI:
Unrealized holding gains	$	410	$	(110)	$	300
Less: accretable yield recognized in income		53		(14)		39
Net unrealized gains on investments with OTTI		357		(96)		261
Available for sale securities – all other:
Unrealized holding losses		(921)		249		(672)
Less: losses recognized in income		(10)		3		(7)
Net unrealized losses on all other AFS securities		(911)		246		(665)
Held to maturity securities:
Unrealized holding gains		—		—		—
Less: amortization recognized in income		(86)		23		(63)
Net unrealized gains on HTM securities		86		(23)		63
Cash flow hedges:
Unrealized holding gains		153		(41)		112
Pension Plan:
Unrealized net actuarial gain		486		(132)		354
Less: amortization of unrecognized loss		(300)		82		(218)
Less: amortization of prior service costs		(2)		—		(2)
Net pension plan liability adjustment		788		(214)		574
SERP:
Less: amortization of unrecognized loss		(40)		11		(29)
Less: amortization of prior service costs		1		(1)		—
Net SERP liability adjustment		39		(10)		29
Other comprehensive income	$	512	$	(138)	$	374

The following table presents the details of amounts reclassified from accumulated other comprehensive loss for the nine- and three-month periods ended September 30, 2019 and 2018:



Amounts Reclassified from	Nine Months Ended
Accumulated Other Comprehensive Loss	September 30,				Affected Line Item in the Statement
(in thousands)	2019		2018		Where Net Income is Presented
Net unrealized gains on available for sale investment securities with OTTI:
Gains on calls	$	—	$	145	Net gains
Accretable yield		149		160	Interest income on taxable investment securities
Taxes		(39)		(82)	Provision for income tax expense
	$	110	$	223	Net of tax
Net unrealized gains/(losses) on available for sale investment securities - all others:
Gains/(losses) on sales	$	1	$	(29)	Net gains
Taxes		—		8	Provision for income tax expense
	$	1	$	(21)	Net of tax
Net unrealized losses on held to maturity securities:
Amortization	$	(243)	$	(200)	Interest income on taxable investment securities
Taxes		65		54	Provision for income tax expense
	$	(178)	$	(146)	Net of tax
Net pension plan liability adjustment:
Amortization of unrecognized loss	$	(807)	$	(900)	Other Expense
Amortization of prior service costs		—		(6)	Salaries and employee benefits
Taxes		219		246	Provision for income tax expense
	$	(588)	$	(660)	Net of tax
Net SERP liability adjustment:
Amortization of unrecognized loss	$	(87)	$	(121)	Other Expense
Amortization of prior service costs		2		2	Salaries and employee benefits
Taxes		23		32	Provision for income tax expense
	$	(62)	$	(87)	Net of tax
Total reclassifications for the period	$	(717)	$	(691)	Net of tax



Amounts Reclassified from	Three Months Ended
Accumulated Other Comprehensive Loss	September 30,				Affected Line Item in the Statement
(in thousands)	2019		2018		Where Net Income is Presented
Net unrealized gains on available for sale investment securities with OTTI:
Accretable Yield	$	50	$	53	Interest income on taxable investment securities
Taxes		(13)		(14)	Provision for Income Tax Expense
	$	37	$	39	Net of tax
Net unrealized gains/(losses) on available for sale investment securities - all others:
Gains/(losses) on sales	$	1	$	(10)	Net gains
Taxes		—		3	Provision for Income Tax Expense
	$	1	$	(7)	Net of tax
Net unrealized losses on held to maturity securities:
Amortization	$	(82)	$	(86)	Interest income on taxable investment securities
Taxes		22		23	Provision for Income Tax Expense
	$	(60)	$	(63)	Net of tax
Net pension plan liability adjustment:
Amortization of unrecognized loss	$	(269)	$	(300)	Salaries and employee benefits
Amortization of prior service costs		—		(2)	Salaries and employee benefits
Taxes		73		82	Provision for Income Tax Expense
	$	(196)	$	(220)	Net of tax
Net SERP liability adjustment:
Amortization of unrecognized loss	$	(29)	$	(40)	Salaries and employee benefits
Amortization of prior service costs		1		1	Salaries and employee benefits
Taxes		8		10	Provision for Income Tax Expense
	$	(20)	$	(29)	Net of tax
Total reclassifications for the period	$	(238)	$	(280)	Net of tax