Comprehensive Income

9 Months Ended

Sep. 30, 2019

Accounting principles generally 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, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of other comprehensive income.

The components of other comprehensive income (loss) and related tax effects are as follows:


	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2019		2018		2019		2018
Unrealized holding gains (losses) on available for sale securities before reclassifications	$	5,355	$	(8,193)	$	27,618	$	(29,134)
Amounts reclassified out of accumulated other comprehensive income:
Realized (gain) loss on debt securities	(107)		(207)		(107)		(207)
Adoption ASU 2016-01	—		—		—		62
Adoption ASU 2018-02	—		—		—		(425)
Total amounts reclassified out of accumulated other comprehensive income (loss)	(107)		(207)		(107)		(570)
Unrealized holding gains (losses) on available for sale securities after reclassifications	5,248		(8,400)		27,511		(29,704)
Tax effect	(1,551)		2,483		(8,133)		8,763
Unrealized holding gains (losses) on available for sale securities, net of tax	3,697		(5,917)		19,378		(20,941)
Change in unfunded status of the supplemental retirement plans before reclassifications	(89)		—		(266)		668
Amounts reclassified out of accumulated other comprehensive income (loss):
Amortization of prior service cost	(13)		(13)		(40)		(40)
Amortization of actuarial losses	102		128		306		382
Adoption ASU 2018-02	—		—		—		(668)
Total amounts reclassified out of accumulated other comprehensive income (loss)	89		115		266		(326)
Change in unfunded status of the supplemental retirement plans after reclassifications	—		115		—		342
Tax effect	—		(34)		—		(101)
Change in unfunded status of the supplemental retirement plans, net of tax	—		81		—		241
Total other comprehensive income (loss)	$	3,697	$	(5,836)	$	19,378	$	(20,700)

The components of accumulated other comprehensive income (loss), included in shareholders’ equity, are as follows:


(in thousands)	September 30, 2019		December 31, 2018
Net unrealized gain (loss) on available for sale securities	$	6,537	$	(20,974)
Tax effect	(1,932)		6,201
Unrealized holding gain (loss) on available for sale securities, net of tax	4,605		(14,773)
Unfunded status of the supplemental retirement plans	(4,802)		(4,802)
Tax effect	1,420		1,420
Unfunded status of the supplemental retirement plans, net of tax	(3,382)		(3,382)
Joint beneficiary agreement liability	276		276
Tax effect	—		—
Joint beneficiary agreement liability, net of tax	276		276
Accumulated other comprehensive gain (loss)	$	1,499	$	(17,879)