| OTHER COMPREHENSIVE INCOME |
8. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the three-month and six-month periods ended
June 30, 2011 and 2010, were as follows:
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Three Months Ended |
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June 30, 2011 |
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|
|
|
|
|
Tax (Expense) |
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|
|
|
| (dollar amounts in thousands) |
|
Pretax |
|
|
Benefit |
|
|
After-tax |
|
|
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
|
$ |
1,400 |
|
|
$ |
(490 |
) |
|
$ |
910 |
|
|
Unrealized holding gains (losses) on available-for-sale debt securities arising during
the period
|
|
|
95,468 |
|
|
|
(33,242 |
) |
|
|
62,226 |
|
|
Less: Reclassification adjustment for net losses (gains) included in net income
|
|
|
(1,507 |
) |
|
|
527 |
|
|
|
(980 |
) |
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|
|
|
|
|
|
|
|
|
|
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Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
|
|
95,361 |
|
|
|
(33,205 |
) |
|
|
62,156 |
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|
|
|
|
|
|
|
|
|
|
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Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
|
|
(18 |
) |
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|
6 |
|
|
|
(12 |
) |
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Unrealized gains (losses) on derivatives used in cash flow hedging relationships
arising during the period
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25,590 |
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(8,956 |
) |
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16,634 |
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Change in pension and post-retirement benefit plan assets and liabilities
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|
4,000 |
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(1,400 |
) |
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|
2,600 |
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|
|
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Total other comprehensive income
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$ |
124,933 |
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|
$ |
(43,555 |
) |
|
$ |
81,378 |
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Three Months Ended |
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June 30, 2010 |
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|
|
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Tax (Expense) |
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|
|
|
| (dollar amounts in thousands) |
|
Pretax |
|
|
Benefit |
|
|
After-tax |
|
|
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
|
|
$ |
8,017 |
|
|
|
(2,806 |
) |
|
|
5,211 |
|
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Unrealized holding gains (losses) on available-for-sale debt securities arising during
the period
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|
|
70,354 |
|
|
|
(24,897 |
) |
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|
45,457 |
|
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Less: Reclassification adjustment for net losses (gains) included in net income
|
|
|
(156 |
) |
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|
55 |
|
|
|
(101 |
) |
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|
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|
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Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
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|
78,215 |
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|
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(27,648 |
) |
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|
50,567 |
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|
|
|
|
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|
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Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
|
|
(206 |
) |
|
|
72 |
|
|
|
(134 |
) |
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Unrealized gains (losses) on derivatives used in cash flow hedging relationships
arising during the period
|
|
|
(3,883 |
) |
|
|
1,359 |
|
|
|
(2,524 |
) |
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Change in pension and post-retirement benefit plan assets and liabilities
|
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|
1,794 |
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|
|
(628 |
) |
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|
1,166 |
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|
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|
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Total other comprehensive income
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$ |
75,920 |
|
|
$ |
(26,845 |
) |
|
$ |
49,075 |
|
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Six Months Ended |
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June 30, 2011 |
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|
|
|
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Tax (expense) |
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|
|
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| (dollar amounts in thousands) |
|
Pretax |
|
|
Benefit |
|
|
After-tax |
|
|
Non credit related impairment recoveries (losses) on debt securities not expected to be sold
|
|
$ |
15,441 |
|
|
|
(5,404 |
) |
|
|
10,037 |
|
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Unrealized holding gains (losses) on available-for-sale debt securities arising during
the period
|
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|
89,743 |
|
|
|
(31,266 |
) |
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|
58,477 |
|
|
Less: Reclassification adjustment for net losses (gains) included in net income
|
|
|
(1,547 |
) |
|
|
541 |
|
|
|
(1,006 |
) |
|
|
|
|
|
|
|
|
|
|
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Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
|
|
103,637 |
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|
|
(36,129 |
) |
|
|
67,508 |
|
|
|
|
|
|
|
|
|
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|
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Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
|
|
52 |
|
|
|
(19 |
) |
|
|
33 |
|
|
Unrealized gains (losses) on derivatives used in cash flow hedging relationships
arising during the period
|
|
|
3,404 |
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|
|
(1,192 |
) |
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|
2,212 |
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Change in pension and post-retirement benefit plan assets and liabilities
|
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|
8,000 |
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|
(2,800 |
) |
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|
5,200 |
|
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Total other comprehensive income
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$ |
115,093 |
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|
$ |
(40,140 |
) |
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$ |
74,953 |
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Six Months Ended |
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June 30, 2010 |
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|
|
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Tax (expense) |
|
|
|
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| (dollar amounts in thousands) |
|
Pretax |
|
|
Benefit |
|
|
After-tax |
|
|
Cumulative effect of change in accounting principle for consolidation of variable interest
entities
|
|
$ |
(6,365 |
) |
|
$ |
2,116 |
|
|
$ |
(4,249 |
) |
|
Non credit related impairment recoveries (losses) on debt securities not expected to be sold
|
|
|
6,078 |
|
|
|
(2,127 |
) |
|
|
3,951 |
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Unrealized holding gains (losses) on available-for-sale debt securities arising during the
period
|
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|
108,281 |
|
|
|
(38,301 |
) |
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|
69,980 |
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|
Less: Reclassification adjustment for net losses (gains) included in net income
|
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|
(125 |
) |
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44 |
|
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|
(81 |
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|
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Net change in unrealized holding gains (losses) on available-for-sale debt securities
|
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|
114,234 |
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|
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(40,384 |
) |
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|
73,850 |
|
|
|
|
|
|
|
|
|
|
|
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Net change in unrealized holding gains (losses) on available-for-sale equity securities
|
|
|
(185 |
) |
|
|
65 |
|
|
|
(120 |
) |
|
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising
during the period
|
|
|
1,190 |
|
|
|
(416 |
) |
|
|
774 |
|
|
Change in pension and post-retirement benefit plan assets and liabilities
|
|
|
3,588 |
|
|
|
(1,256 |
) |
|
|
2,332 |
|
|
|
|
|
|
|
|
|
|
|
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Total other comprehensive income
|
|
$ |
112,462 |
|
|
$ |
(39,875 |
) |
|
$ |
72,587 |
|
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|
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Activity in accumulated other comprehensive income, net of tax, for the six-month periods
ended June 30, 2011 and 2010, were as follows:
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Unrealized gains |
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Unrealized gains |
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(losses) for |
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Unrealized |
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Unrealized gains |
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and (losses) on |
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pension and other |
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gains and (losses) |
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and (losses) on |
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cash flow hedging |
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post-retirement |
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| (dollar amounts in thousands) |
|
on debt securities (1) |
|
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equity securities |
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derivatives |
|
|
obligations |
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Total |
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Balance, December 31, 2009
|
|
$ |
(103,060 |
) |
|
$ |
(322 |
) |
|
$ |
58,865 |
|
|
$ |
(112,468 |
) |
|
$ |
(156,985 |
) |
|
Cumulative effect of change
in accounting principle for
consolidation of variable
interest entities
|
|
|
(4,249 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,249 |
) |
|
Period change
|
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73,850 |
|
|
|
(120 |
) |
|
|
774 |
|
|
|
2,332 |
|
|
|
76,836 |
|
|
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|
|
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|
Balance, June 30, 2010
|
|
$ |
(33,459 |
) |
|
$ |
(442 |
) |
|
$ |
59,639 |
|
|
$ |
(110,136 |
) |
|
$ |
(84,398 |
) |
|
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|
|
|
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|
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|
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|
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|
Balance, December 31, 2010
|
|
$ |
(101,290 |
) |
|
|
(427 |
) |
|
|
35,710 |
|
|
|
(131,489 |
) |
|
$ |
(197,496 |
) |
|
Period change
|
|
|
67,508 |
|
|
|
33 |
|
|
|
2,212 |
|
|
|
5,200 |
|
|
|
74,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2011
|
|
$ |
(33,782 |
) |
|
$ |
(394 |
) |
|
$ |
37,922 |
|
|
$ |
(126,289 |
) |
|
$ |
(122,543 |
) |
|
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|
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|
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| (1) |
|
Amount at June 30, 2011 includes $0.5 million of net unrealized gains on securities
transferred from the available-for-sale securities portfolio to the held-to-maturity
securities portfolio. The net unrealized gains will be recognized in earnings over the
remaining life of the security using the effective interest method. |
|