Stockholders’ Equity

Total equity was

$2.0

billion as of

March 31, 2018,

an increase of

$36.5

million, from

$1.97

billion as of

December 31, 2017,

primarily due to net income of

$63.8

million partially offset by common stock cash dividends of

$19.5

million and decreases in other comprehensive income of

$9.3

million.

The U.S. Treasury received warrants to purchase common stock of

1,846,374

shares at an exercise price of

$20.96

as part of the Company’s participation in the U.S. Treasury Troubled Asset Relief Program Capital Purchase Program. As a result of the anti-dilution adjustments under the warrant, the exercise price at

December 31, 2017,

has been adjusted to

$20.41

and the number of warrants increased by

1.03%.

March 31, 2018,

578,238

warrants remain exercisable compared to

943,327

warrants at

December 31, 2017.

Activity in accumulated other comprehensive income, net of tax, and reclassification out of accumulated other comprehensive income for the

three

months ended

March 31, 2018,

and

March 31, 2017,

was as follows:

	Three months ended March 31, 2018									Three months ended March 31, 2017
	Pre-tax			Tax expense/ (benefit)			Net-of-tax			Pre-tax			Tax expense/ (benefit)			Net-of-tax
	(In thousands)
Beginning balance, loss, net of tax
Securities available-for-sale							$	(1,060	)							$	(1,545	)
Cash flow hedge derivatives								(1,451	)								(2,170	)
Total							$	(2,511	)							$	(3,715	)

Reclassification adjustment for stranded tax effects of Tax Cuts and Jobs Act (1)
Securities available-for-sale		-			200			(200	)		-			-			-
Cash flow hedge derivatives		-			315			(315	)		-			-			-
Total		-			515			(515	)		-			-			-

Reclassification adjustment for equity securities (2)
Equity securities		(12,151	)		(3,592	)		(8,559	)		-			-			-

Net unrealized (losses)/gains arising during the period
Securities available-for-sale	$	(16,346	)	$	(4,832	)	$	(11,514	)	$	(856	)	$	(360	)	$	(496	)
Cash flow hedge derivatives		3,113			920			2,193			516			217			299
Total		(13,233	)		(3,912	)		(9,321	)		(340	)		(143	)		(197	)

Reclassification adjustment for net losses in net income
Securities available-for-sale		-			-			-			466			196			270
Cash flow hedge derivatives		-			-			-			-			-			-
Total		-			-			-			466			196			270
Total other comprehensive (loss)/income
Securities available-for-sale		(16,346	)		(4,832	)		(11,514	)		(390	)		(164	)		(226	)
Cash flow hedge derivatives		3,113			920			2,193			516			217			299
Total	$	(13,233	)	$	(3,912	)	$	(9,321	)	$	126		$	53		$	73
Ending balance, (loss)/gain, net of tax
Securities available-for-sale							$	(21,333	)							$	(1,771	)
Cash flow hedge derivatives								427									(1,871	)
Total							$	(20,906	)							$	(3,642	)

( 1 ) These amounts were recorded as of January 1, 2018 as a result of the adoption of ASU 2018 - 2.
( 2 ) This amount was recorded as of January 1, 2018 as a result of the adoption of ASU 2016 - 1.