Comprehensive Income

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive Income

Note 8. Comprehensive Income

Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from nonowner sources. The Company’s other comprehensive income (loss) is comprised of unrealized holding gains and losses on securities available-for-sale, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, net of taxes.

The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented:

Details about Accumulated Other	Amounts Reclassified from Accumulated												Affected Line item in the
Comprehensive Income Components	Other Comprehensive Income												Statement Where Net Income is Presented
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
	(dollars in thousands)
Sale of investment securities available for sale	$	-		$	-		$	-		$	1,596		Net gains on sale of securities available-for-sale
		-			-			-			(579	)	Income tax expense
		-			-			-			1,017
Amortization of pension plan net actuarial losses		(91	)		(103	)		(182	)		(206	)	Salaries and employee benefits
		25			42			50			84		Income tax benefit
		(66	)		(61	)		(132	)		(122	)
Total reclassification	$	(66	)	$	(61	)	$	(132	)	$	895

Accumulated other comprehensive loss at June 30, 2018 and December 31, 2017 consisted of the following:

	June 30,			December 31,
	2018			2017
	(dollars in thousands)
Investment securities available-for-sale, net of tax	$	(6,096	)	$	(902	)
Cash flow hedge, net of tax		1,361			472
Defined benefit pension and post-retirement plans, net of tax		(3,912	)		(3,589	)
Total	$	(8,647	)	$	(4,019	)

Effective January 1, 2018, the Company implemented ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under ASU 2018-02, the FASB amended existing guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). In order to comply with this new ASU, the Company recorded an adjustment to the balance sheet on January 1, 2018 of approximately $709 thousand that increased retained earnings and decreased accumulated other comprehensive loss.

Effective January 1, 2018, the Company implemented ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Under ASU 2016-01, equity securities, with certain exceptions, are to be measured at fair value with changes in fair value recognized in net income. In order to comply with this new ASU, the Company recorded a cumulative-effect adjustment to the balance sheet of approximately $55 thousand. As of June 30, 2018, the Company’s equity securities had readily determinable fair values, and, prospectively, changes in fair value will be recognized in net income.