ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income is defined as net income plus transactions and other occurrences that are the result of non-owner changes in equity. For condensed financial statements presented for the Company, non-owner changes in equity are comprised of unrealized gains or losses on available-for-sale debt securities and any minimum pension liability adjustments. The following table presents the activity in net accumulated other comprehensive income (loss) and the components of the activity for the periods indicated: | | | Unrealized Gains | | | | | | | | | | (Losses) on | | | | | | | | | | Investments | | Defined Benefit | | | | (In thousands) | | Available-for-Sale | | Pension Plan | | Total | Balance at January 1, 2019 | | $ | (6,630) | | $ | (9,124) | | $ | (15,754) | Other comprehensive income before reclassification, net of tax | | | 6,508 | | | - | | | 6,508 | Reclassifications from accumulated other comprehensive income, net of tax | | | - | | | 196 | | | 196 | Current period change in other comprehensive income, net of tax | | | 6,508 | | | 196 | | | 6,704 | Balance at March 31, 2019 | | $ | (122) | | $ | (8,928) | | $ | (9,050) |
| | | Unrealized Gains | | | | | | | | | | (Losses) on | | | | | | | | | | Investments | | Defined Benefit | | | | (In thousands) | | Available-for-Sale | | Pension Plan | | Total | Balance at January 1, 2018 | | $ | 687 | | $ | (7,544) | | $ | (6,857) | Other comprehensive income before reclassification, net of tax | | | (9,368) | | | - | | | (9,368) | Reclassifications from accumulated other comprehensive income, net of tax | | | (47) | | | 131 | | | 84 | Current period change in other comprehensive income, net of tax | | | (9,415) | | | 131 | | | (9,284) | Reclassification of tax effects from accumulated other comprehensive income | | | 148 | | | (1,625) | | | (1,477) | Balance at March 31, 2018 | | $ | (8,580) | | $ | (9,038) | | $ | (17,618) |
The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income for the periods indicated: | | | | | Three Months Ended March 31, | (In thousands) | | 2019 | | 2018 | Unrealized gains on investments available-for-sale | | | | | | | | Affected line item in the Statements of Income: | | | | | | | | Investment securities gains | | $ | - | | $ | 63 | | Income before taxes | | | - | | | 63 | | Tax expense | | | - | | | 16 | | Net income | | $ | - | | $ | 47 | | | | | | | | | | | Amortization of defined benefit pension plan items | | | | | | | | Affected line item in the Statements of Income: | | | | | | | | | Recognized actuarial loss(1) | | $ | (265) | | $ | (250) | | | | Income before taxes | | | (265) | | | (250) | | | | Tax benefit | | | 69 | | | (119) | | | | Net loss | | $ | (196) | | $ | (131) | (1) This amount is included in the computation of net periodic benefit cost, see Note 9. |
In the first quarter of 2018, the Company elected to make a one-time reclassification from accumulated other comprehensive income to retained earnings for the effects of re-measuring the deferred tax assets and liabilities originally recorded in other comprehensive income as a result of the change in the federal tax rate by the Tax Cuts and Jobs Act.
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