13.	OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) included in the Consolidated Statements of Shareholders’ Equity consists of unrealized gains and losses on available for sale securities and reflects no change in unrealized gains and losses on postretirement liability. The change includes $328,000 reclassification of gains on sales of securities and no impairment charges for the three months ended September 30, 2014, and no gains on sales of securities and no impairment charges for the three months ended September 30, 2013. The change includes $362,000 reclassification of gains on sales of securities and no impairment charges for the nine months ended September 30, 2014, and gains on sales of securities of $2.6 million and no impairment charges for the nine months ended September 30, 2013.

Other comprehensive income (loss) components and related tax effects for the three and nine month periods are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
	(Dollars in thousands)
Unrealized holding gain (loss) on securities available for sale	$	(302	)	$	(2,121	)	$	23,985		$	(35,428	)
Unrealized holding gain (loss) on postretirement benefits		—			—			—			—
Reclassification adjustment for gains realized in income		(328	)		—			(362	)		(2,578	)
Net unrealized gains (losses)		(630	)		(2,121	)		23,623			(38,006	)
Tax effect		221			—			(8,268	)		—
Net of tax amount	$	(409	)	$	(2,121	)	$	15,355		$	(38,006	)

The following is a summary of accumulated other comprehensive income (loss) balances, net of tax:

	Balance at December 31, 2013			Current Period Change		Balance at September 30, 2014
Unrealized gains (losses) on securities available for sale	$	(43,364	)	$	15,355	$	(28,009	)
Unrealized gains (losses) on post-retirement benefits		1,699			—		1,699
Total	$	(41,665	)	$	15,355	$	(26,310	)

	Balance at December 31, 2012		Current Period Change			Balance at September 30, 2013
Unrealized gains (losses) on securities available for sale	$	5,082	$	(38,006	)	$	(32,924	)
Unrealized gains (losses) on post-retirement benefits		1,600		—			1,600
Total	$	6,682	$	(38,006	)	$	(31,324	)

As of June 30, 2014, management concluded it was more likely than not that the Company’s net deferred tax asset (DTA) would be realized and accordingly determined a full deferred tax valuation allowance was no longer required. Upon reversal of the former full deferred tax valuation allowance as of September 30, 2014, certain disproportionate tax effects are retained in accumulated other comprehensive income (loss) totaling approximately a ($16.6) million loss. Almost the entire disproportionate tax effect is attributable to valuation allowance expense recorded through other comprehensive income (loss) on the tax benefit of losses sustained on the available for sale securities portfolio while the Company was in a full deferred tax valuation allowance. This valuation allowance was appropriately reversed through continuing operations at June 30, 2014, leaving the original expense in accumulated other comprehensive income (loss), where it will remain in accordance with the Company’s election of the “portfolio approach”, until such time as the Company would cease to have an available for sale security portfolio.

The following is a summary of each component of accumulated other comprehensive income (loss) that was reclassified into net income during the three and nine months ended September 30, 2014, net of tax:

	Unrealized gains/losses on Available for Sale Securities			Postretirement Benefits		Total
	(Dollars in thousands)
Beginning balance (06/30/2014)	$	(27,600	)	$	1,699	$	(25,901	)
Other comprehensive income before reclassification, net of tax		(196	)		—		(196	)
Amounts reclassified from accumulated other compressive income, net of tax		(213	)		—		(213	)
Net current period other comprehensive income, net of tax		(409	)		—		(409	)
Ending balance (09/30/2014)	$	(28,009	)	$	1,699	$	(26,310	)

	Unrealized gains/losses on Available for Sale Securities			Postretirement Benefits		Total
	(Dollars in thousands)
Beginning balance (12/31/2013)	$	(43,364	)	$	1,699	$	(41,665	)
Other comprehensive income before reclassification, net of tax		15,590			—		15,590
Amounts reclassified from accumulated other compressive income, net of tax		(235	)		—		(235	)
Net current period other comprehensive income, net of tax		15,355			—		15,355
Ending balance (09/30/2014)	$	(28,009	)	$	1,699	$	(26,310	)

The following is a summary of each component of accumulated other comprehensive income (loss) that was reclassified into net income during the three and nine months ended September 30, 2013:

	Unrealized gains/losses on Available for Sale Securities			Postretirement Benefits		Total
	(Dollars in thousands)
Beginning balance (06/30/2013)	$	(30,803	)	$	1,600	$	(29,203	)
Other comprehensive income before reclassification		(2,121	)		—		(2,121	)
Amounts reclassified from accumulated other compressive income		—			—		—
Net current period other comprehensive income		(2,121	)		—		(2,121	)
Ending balance (09/30/2013)	$	(32,924	)	$	1,600	$	(31,324	)

	Unrealized gains/losses on Available for Sale Securities			Postretirement Benefits		Total
	(Dollars in thousands)
Beginning balance (12/31/2013)	$	5,082		$	1,600	$	6,682
Other comprehensive income before reclassification		(35,428	)		—		(35,428	)
Amounts reclassified from accumulated other compressive income		(2,578	)		—		(2,578	)
Net current period other comprehensive income		(38,006	)		—		(38,006	)
Ending balance (09/30/2013)	$	(32,924	)	$	1,600	$	(31,324	)

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2014:

Details About Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income			Affected Line Item on the Statement Where Net Income is Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	(328	)	Net gains on securities available for sale
		115		Tax expense (benefit)
		(213	)	Net of tax
Total reclassification during the period	$	(213	)

The following is significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2013:

Details About Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income		Affected Line Item on the Statement Where Net Income is Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	—	Net gains on securities available for sale
		—	Tax expense (benefit)
		—	Net of tax
Total reclassification during the period	$	—

The following is significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2014:

Details About Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income			Affected Line Item on the Statement Where Net Income is Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	(362	)	Net gains on securities available for sale
		127		Tax expense (benefit)
		(235	)	Net of tax
Total reclassification during the period	$	(235	)

The following is significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2013:

Details About Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income			Affected Line Item on the Statement Where Net Income is Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	(2,578	)	Net gains on securities available for sale
		—		Tax expense (benefit)
		(2,578	)	Net of tax
Total reclassification during the period	$	(2,578	)