| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The related tax effects allocated to other comprehensive income and reclassifications out of accumulated other comprehensive income (loss) are as follows | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2016 | | Total other comprehensive income | | Total accumulated other comprehensive income | (Dollars in thousands) | Prior to Reclassification | | Reclassification from | | Pre-tax | | Tax-effect | | Net of tax | | Beginning Balance | | Net Activity | | Ending Balance | Unrealized gain (loss) on investment securities | $ | 7,877 |
| | $ | (188 | ) | | $ | 8,065 |
| | $ | (2,873 | ) | | $ | 5,192 |
| | $ | 2,110 |
| | $ | 5,192 |
| | $ | 7,302 |
| Unrealized gain (loss) on derivatives | 203 |
| | 0 |
| | 203 |
| | (75 | ) | | 128 |
| | (1,471 | ) | | 128 |
| | (1,343 | ) | Retirement obligation | 0 |
| | (317 | ) | | 317 |
| | (116 | ) | | 201 |
| | (23,848 | ) | | 201 |
| | (23,647 | ) | Foreign currency translation | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| | 0 |
| Total | $ | 8,080 |
| | $ | (505 | ) | | $ | 8,585 |
| | $ | (3,064 | ) | | $ | 5,521 |
| | $ | (23,209 | ) | | $ | 5,521 |
| | $ | (17,688 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2015 | | Total other comprehensive income | | Total accumulated other comprehensive income | (Dollars in thousands) | Prior to Reclassification | | Reclassification from | | Pre-tax | | Tax-effect | | Net of tax | | Beginning Balance | | Net Activity | | Ending Balance | Unrealized gain (loss) on investment securities | $ | (4,802 | ) | | $ | 1,094 |
| | $ | (5,896 | ) | | $ | 2,118 |
| | $ | (3,778 | ) | | $ | 2,502 |
| | $ | (3,778 | ) | | $ | (1,276 | ) | Unrealized gain (loss) on derivatives | (132 | ) | | 0 |
| | (132 | ) | | 49 |
| | (83 | ) | | (1,765 | ) | | (83 | ) | | (1,848 | ) | Retirement obligation | 0 |
| | (350 | ) | | 350 |
| | (129 | ) | | 221 |
| | (17,721 | ) | | 221 |
| | (17,500 | ) | Foreign currency translation | (21 | ) | | 0 |
| | (21 | ) | | 0 |
| | (21 | ) | | (70 | ) | | (21 | ) | | (91 | ) | Total | $ | (4,955 | ) | | $ | 744 |
| | $ | (5,699 | ) | | $ | 2,038 |
| | $ | (3,661 | ) | | $ | (17,054 | ) | | $ | (3,661 | ) | | $ | (20,715 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2016 | | Total other comprehensive income | | Total accumulated other comprehensive income (loss) | (Dollars in thousands) | Prior to Reclassification | | Reclassification from | | Pre-tax | | Tax-effect | | Net of tax | | Beginning Balance | | Net Activity | | Ending Balance | Unrealized gain (loss) on investment securities | $ | 18,852 |
| | $ | (164 | ) | | $ | 19,016 |
| | $ | (6,781 | ) | | $ | 12,235 |
| | $ | (4,933 | ) | | $ | 12,235 |
| | $ | 7,302 |
| Unrealized gain (loss) on derivatives | 405 |
| | 0 |
| | 405 |
| | (149 | ) | | 256 |
| | (1,599 | ) | | 256 |
| | (1,343 | ) | Retirement obligation | 0 |
| | (634 | ) | | 634 |
| | (233 | ) | | 401 |
| | (24,048 | ) | | 401 |
| | (23,647 | ) | Total | $ | 19,257 |
| | $ | (798 | ) | | $ | 20,055 |
| | $ | (7,163 | ) | | $ | 12,892 |
| | $ | (30,580 | ) | | $ | 12,892 |
| | $ | (17,688 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2015 | | Total other comprehensive income | | Total accumulated other comprehensive income (loss) | (Dollars in thousands) | Prior to Reclassification | | Reclassification from | | Pre-tax | | Tax-effect | | Net of tax | | Beginning Balance | | Net Activity | | Ending Balance | Unrealized gain (loss) on investment securities | $ | 3,006 |
| | $ | 1,094 |
| | $ | 1,912 |
| | $ | (682 | ) | | $ | 1,230 |
| | $ | (2,506 | ) | | $ | 1,230 |
| | $ | (1,276 | ) | Unrealized gain (loss) on derivatives | (1,425 | ) | | 0 |
| | (1,425 | ) | | 526 |
| | (899 | ) | | (949 | ) | | (899 | ) | | (1,848 | ) | Retirement obligation | 0 |
| | (700 | ) | | 700 |
| | (296 | ) | | 404 |
| | (17,904 | ) | | 404 |
| | (17,500 | ) | Foreign currency translation | (41 | ) | | 0 |
| | (41 | ) | | 0 |
| | (41 | ) | | (50 | ) | | (41 | ) | | (91 | ) | Total | $ | 1,540 |
| | $ | 394 |
| | $ | 1,146 |
| | $ | (452 | ) | | $ | 694 |
| | $ | (21,409 | ) | | $ | 694 |
| | $ | (20,715 | ) |
The following table presents the activity reclassified from accumulated other comprehensive income into income during the three and six month periods ended June 30, 2016 and 2015, respectively: | | | | | | | | | | | | | | | | | | | | | | Amount reclassified from accumulated other comprehensive income (1) | | | | | Three months ended | | Six months ended | | | | | June 30, | | June 30, | | | (Dollars in thousands) | | 2016 | | 2015 | | 2016 | | 2015 | | Affected Line Item in the Consolidated Statements of Income | Realized gains and losses on securities available-for-sale | | $ | (188 | ) | | $ | 1,094 |
| | $ | (164 | ) | | $ | 1,094 |
| | Gains on sales of investments securities | Defined benefit pension plan | | | | | | | | | Amortization of prior service cost (2) | | 104 |
| | 100 |
| | 207 |
| | 200 |
| | Salaries and employee benefits | Recognized net actuarial loss (2) | | (421 | ) | | (450 | ) | | (841 | ) | | (900 | ) | | Salaries and employee benefits | Defined benefit pension plan total | | (317 | ) | | (350 | ) | | (634 | ) | | (700 | ) | | | Total reclassifications for the period, before tax | | $ | (505 | ) | | $ | 744 |
| | $ | (798 | ) | | $ | 394 |
| | |
(1) Negative amounts are reductions to net income. (2) Included in the computation of net periodic pension cost (see Note 12 - Employee Benefit Plans for additional details). |