CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Schedule of Actual and Required Capital Ratios


			Regulatory				Regulatory
	September 30,		Minimum to be		December 31,		Minimum to be
	2021		"Well-Capitalized"		2020		"Well-Capitalized"
Company (consolidated)
Total capital to risk-weighted assets⁽¹⁾	14.12	%	10.50	%	13.57	%	10.50	%
Common equity tier 1 capital to risk-weighted assets⁽¹⁾	10.92		7.00		10.49		7.00
Tier 1 capital to risk-weighted assets⁽¹⁾	11.70		8.50		11.29		8.50
Tier 1 capital to average assets	8.54		5.00		8.12		5.00

Bank
Total capital to risk-weighted assets⁽¹⁾	13.92	%	10.50	%	13.27	%	10.50	%
Common equity tier 1 capital to risk-weighted assets⁽¹⁾	13.02		7.00		12.53		7.00
Tier 1 capital to risk-weighted assets⁽¹⁾	13.02		8.50		12.52		8.50
Tier 1 capital to average assets	9.50		5.00		9.02		5.00

Schedule of Components of Accumulated Other Comprehensive Income


(in thousands)	September 30, 2021		December 31, 2020
Accumulated other comprehensive income, before tax:
Net unrealized gain on AFS securities	$	5,741	$	13,069
Net unrealized gain on hedging derivatives⁽¹⁾		(121)		(2,432)
Net unrealized loss on post-retirement plans		(1,850)		(1,850)

Income taxes related to items of accumulated other comprehensive income:
Net unrealized gain on AFS securities		(1,343)		(3,046)
Net unrealized gain on hedging derivatives⁽¹⁾		29		567
Net unrealized loss on post-retirement plans		432		432
Accumulated other comprehensive income⁽¹⁾	$	2,888	$	6,740

(1)

Prior period has been revised, see Note 1 Basis of Presentation – Revision of Previously Issued Financial Statements.

Schedule of Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020:


(in thousands)	Before Tax		Tax Effect		Net of Tax
Three Months Ended September 30, 2021
Net unrealized gain on AFS securities:
Net unrealized gain arising during the period	$	(1,770)	$	403	$	(1,367)
Less: reclassification adjustment for gains (losses) realized in net income		1,930		(458)		1,472
Net unrealized gain on AFS securities		(3,700)		861		(2,839)

Net unrealized gain on hedging derivatives:
Net unrealized gain arising during the period		(203)		48		(155)
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized gain on cash flow hedging derivatives		(203)		48		(155)

Net unrealized loss on post-retirement plans:
Net unrealized loss arising during the period		—		—		—
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized loss on post-retirement plans		—		—		—
Other comprehensive loss	$	(3,903)	$	909	$	(2,994)

Three Months Ended September 30, 2020
Net unrealized gain on AFS securities:
Net unrealized gain arising during the period	$	351	$	(82)	$	269
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized gain on AFS securities		351		(82)		269

Net unrealized gain on derivative hedgess:
Net unrealized gain arising during the period⁽¹⁾		1,302		(308)		994
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized gain on cash flow derivative hedges⁽¹⁾		1,302		(308)		994

Net unrealized loss on post-retirement plans:
Net unrealized loss arising during the period		—		—		—
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized loss on post-retirement plans		—		—		—
Other comprehensive income⁽¹⁾	$	1,653	$	(390)	$	1,263

(1)	Prior period has been revised, see Note 1 Basis of Presentation – Revision of Previously Issued Financial Statements.


(in thousands)	Before Tax		Tax Effect		Net of Tax
Nine Months Ended September 30, 2021
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period	$	(5,348)	$	1,234	$	(4,114)
Less: reclassification adjustment for gains (losses) realized in net income		1,980		(469)		1,511
Net unrealized loss on AFS securities		(7,328)		1,703		(5,625)

Net unrealized loss on derivative hedges:
Net unrealized loss arising during the period		2,311		(538)		1,773
Less: reclassification adjustment for (losses) gains realized in net income		—		—		—
Net unrealized loss on derivative hedges		2,311		(538)		1,773

Net unrealized loss on post-retirement plans:
Net unrealized loss arising during the period		—		—		—
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized loss on post-retirement plans		—		—		—
Other comprehensive loss	$	(5,017)	$	1,165	$	(3,852)

Nine Months Ended September 30, 2020
Net unrealized gain on AFS securities:
Net unrealized gain arising during the period	$	9,408	$	(2,143)	$	7,265
Less: reclassification adjustment for gains realized in net income		1,486		(352)		1,134
Net unrealized gain on AFS securities		7,922		(1,791)		6,131

Net unrealized loss on cash flow hedging derivatives:
Net unrealized loss arising during the period⁽¹⁾		(7,568)		1,776		(5,792)
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized loss on cash flow hedging derivatives⁽¹⁾		(7,568)		1,776		(5,792)

Net unrealized gain on post-retirement plans:
Net unrealized gain arising during the period		—		—		—
Less: reclassification adjustment for gains (losses) realized in net income		—		—		—
Net unrealized gain on post-retirement plans		—		—		—
Other comprehensive income⁽¹⁾	$	354	$	(15)	$	339

(1)	Prior period has been revised, see Note 1 Basis of Presentation – Revision of Previously Issued Financial Statements.

Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss)


	Net unrealized		Net loss on		Net unrealized
	gain		effective cash		loss
	on AFS		flow hedging		on pension
(in thousands)	Securities		derivatives⁽¹⁾		plans		Total⁽¹⁾
Three Months Ended September 30, 2021
Balance at beginning of period	$	7,237	$	63	$	(1,418)	$	5,882
Other comprehensive gain before reclassifications		(1,367)		(155)		—		(1,522)
Less: amounts reclassified from accumulated other comprehensive income		1,472		—		—		1,472
Total other comprehensive income		(2,839)		(155)		—		(2,994)
Balance at end of period	$	4,398	$	(92)	$	(1,418)	$	2,888

Three Months Ended September 30, 2020
Balance at beginning of period	$	11,412	$	(7,387)	$	(1,157)	$	2,868
Other comprehensive gain before reclassifications		269		994		—		1,263
Less: amounts reclassified from accumulated other comprehensive income		—		—		—		—
Total other comprehensive income		269		994		—		1,263
Balance at end of period	$	11,681	$	(6,393)	$	(1,157)	$	4,131

Nine Months Ended September 30, 2021
Balance at beginning of period	$	10,023	$	(1,865)	$	(1,418)	$	6,740
Other comprehensive loss before reclassifications		(4,114)		1,773		—		(2,341)
Less: amounts reclassified from accumulated other comprehensive income		1,511		—		—		1,511
Total other comprehensive loss		(5,625)		1,773		—		(3,852)
Balance at end of period	$	4,398	$	(92)	$	(1,418)	$	2,888

Nine Months Ended September 30, 2020
Balance at beginning of period	$	5,550	$	(601)	$	(1,157)	$	3,792
Other comprehensive gain (loss) before reclassifications		7,265		(5,792)		—		1,473
Less: amounts reclassified from accumulated other comprehensive income		1,134		—		—		1,134
Total other comprehensive income (loss)		6,131		(5,792)		—		339
Balance at end of period	$	11,681	$	(6,393)	$	(1,157)	$	4,131

(1)	Prior period has been revised, see Note 1 Basis of Presentation – Revision of Previously Issued Financial Statements.

Reclassification out of Accumulated Other Comprehensive Income


	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item where
(in thousands)	2021		2020		2021		2020		Net Income is Presented
Net realized gains on AFS securities:
Before tax⁽¹⁾	$	1,930	$	—	$	1,980	$	1,486	Non-interest income
Tax effect		(458)		—		(469)		(352)	Tax expense
Total reclassifications for the period	$	1,472	$	—	$	1,511	$	1,134

(a)

Net realized gains before tax include $1.9 million realized gains for the three months ended September 30, 2021 and $2.0 million for the nine months ended September 30, 2021 and gross realized losses of $50 thousand for both of the respective periods. There were no net realized gains or losses for the three months ended September 30, 2020. Net realized gains before tax include gross realized gains $1.5 million and realized losses of $22 thousand for the nine months ended September 30, 2020.