Comprehensive Income

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

(4) Comprehensive Income

Accounting principles generally accepted in the United States of America, require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, unrealized gains and losses on financial derivatives, and unrecognized gains and losses, prior service costs and transition assets or obligations for defined benefit pension and postretirement plans are reported as a separate component of the shareholders’ equity section of the consolidated statements of condition, such items, along with net income, are components of comprehensive income.

The components of other comprehensive income and related tax effects for the three and six months ended June 30, are as follows:

	For the three months						For the six months
	ended June 30,						ended June 30,
(In thousands)	2011			2010			2011			2010
Unrealized holding gains on securities available for sale:
Unrealized holding gains arising during the period	$	1,632		$	952		$	2,115		$	1,580
Reclassification adjustment for net gains included in net income		(295	)		(17	)		(323	)		(28	)
Net unrealized gains on securities available for sale		1,337			935			1,792			1,552
Unrealized holding loss on financial derivative:
Unrealized holding loss arising during the period		(64	)		(192	)		(55	)		(154	)
Reclassification adjustment for interest expense included in net income		15			15			30			31
Net unrealized loss on financial derivative		(49	)		(177	)		(25	)		(123	)
Defined benefit pension and post retirement plans:
Reclassification adjustment for amortization of benefit plans' net loss
and transition obligation recognized in net periodic expense		66			54			133			109
Net change in defined benefit plans		66			54			133			109
Other comprehensive income before tax		1,354			812			1,900			1,538
Tax effect		(542	)		(370	)		(760	)		(660	)
Other comprehensive income	$	812		$	442		$	1,140		$	878

The components of accumulated other comprehensive loss and related tax effects for the periods indicated are as follows:

	June 30,			December 31,
(In thousands)	2011			2010
Unrealized gains on securities available for sale
(net of tax expense 2011 - $826; 2010 - $110)	$	1,239		$	164
Unrealized losses on financial derivative
(net of tax benefit 2011 - $54; 2010 - $44)		(80	)		(66	)
Net pension losses and past service liability
(net of tax benefit 2011 - $1,285; 2010 - $1,334)		(1,927	)		(2,001	)
Net post-retirement losses and past service liability
(net of tax benefit 2011 - $21; 2010 - $25)		(31	)		(36	)
	$	(799	)	$	(1,939	)

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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