Comprehensive Income

12 Months Ended

Dec. 31, 2019

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

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17 - 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.

Details about Accumulated Other Comprehensive Income (Loss) Components	Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Consolidated Statements of Income
	Year ended December 31,
(dollars in thousands)	2019		2018		2017
Sale of investment securities available-for-sale	$	(280)	$	-	$	1,596	Net (losses) gains on sale of securities available-for-sale
		79		-		(579)	Income tax benefit (expense)
		(201)		-		1,017
Net interest income (expense) on swaps		677		464		(406)	Interest expense
		(190)		(130)		166	Income tax expense (benefit)
		487		334		(240)
Amortization of pension plan net actuarial losses		(358)		(359)		(412)	Other components of net periodic pension expense
		101		101		169	Income tax benefit
		(257)		(258)		(243)
Total reclassification	$	29	$	76	$	534

Accumulated other comprehensive loss at December 31, 2019 and 2018 consisted of the following:

	2019		2018
	(dollars in thousands)
Investment securities available-for-sale, net of tax	$	2,724	$	(5,841)
Cash flow hedge, net of tax		(193)		837
Defined benefit pension and post-retirement plans, net of tax		(3,678)		(3,785)
Total	$	(1,147)	$	(8,789)

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 Act. In order to comply with this new ASU, the Company recorded an adjustment to the Consolidated Statement of Condition on January 1, 2018 of approximately $709 thousand that increased retained earnings and increased 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 Consolidated Statement of Condition of approximately $55 thousand.