Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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Other Comprehensive Income
 9 Months Ended
Sep. 30, 2011
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

8. OTHER COMPREHENSIVE INCOME

 

The components of other comprehensive income for the three-month and nine-month periods ended September 30, 2011 and 2010, were as follows:

    Three Months Ended
    September 30, 2011
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ (4,362)   $ 1,527   $ (2,835)
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   42,832     (15,180)     27,652
Less: Reclassification adjustment for net losses (gains) included in net income   1,350     (473)     877
Net change in unrealized holding gains (losses) on available-for-sale debt securities   39,820     (14,126)     25,694
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (197)     69     (128)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   21,494     (7,523)     13,971
                 
Change in pension and post-retirement benefit plan assets and liabilities   4,003     (1,401)     2,602
                 
Total other comprehensive income $ 65,120   $ (22,981)   $ 42,139
                 
    Three Months Ended
    September 30, 2010
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 30,492   $ (10,672)   $ 19,820
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   28,767     (10,276)     18,491
Less: Reclassification adjustment for net losses (gains) included in net income   296     (104)     192
Net change in unrealized holding gains (losses) on available-for-sale debt securities   59,555     (21,052)     38,503
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (53)     19     (34)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   25,180     (8,813)     16,367
                 
Change in pension and post-retirement benefit plan assets and liabilities   1,794     (628)     1,166
                 
Total other comprehensive income $ 86,476   $ (30,474)   $ 56,002
                 
                 
    Nine Months Ended
    September 30, 2011
    Tax (expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Non credit related impairment recoveries (losses) on debt securities not expected to be sold $ 11,079   $ (3,878)   $ 7,201
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   132,575     (46,446)     86,129
Less: Reclassification adjustment for net losses (gains) included in net income   (197)     69     (128)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   143,457     (50,255)     93,202
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (145)     50     (95)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   24,897     (8,714)     16,183
                 
Change in pension and post-retirement benefit plan assets and liabilities   12,003     (4,201)     7,802
                 
Total other comprehensive income $ 180,212   $ (63,120)   $ 117,092
                 
    Nine Months Ended
    September 30, 2010
    Tax (expense)
(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   36,570     (12,799)     23,771
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   137,051     (48,578)     88,473
Less: Reclassification adjustment for net losses (gains) included in net income   171     (60)     111
Net change in unrealized holding gains (losses) on available-for-sale debt securities   173,792     (61,437)     112,355
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (241)     85     (156)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   26,371     (9,230)     17,141
                 
Change in pension and post-retirement benefit plan assets and liabilities   5,382     (1,884)     3,498
                 
Total other comprehensive income $ 198,939   $ (70,350)   $ 128,589
                 

Activity in accumulated other comprehensive income, net of tax, for the nine-month periods ended September 30, 2011 and 2010, were as follows:

(dollar amounts in thousands)   Unrealized gains and (losses) on debt securities (1)     Unrealized gains and (losses) on equity securities     Unrealized gains and (losses) on cash flow hedging derivatives     Unrealized gains (losses) for pension and other post-retirement obligations     Total
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   112,355     (156)     17,141     3,498     132,838
Balance, September 30, 2010 $ 5,046   $ (478)   $ 76,006   $ (108,970)   $ (28,396)
                             
Balance, December 31, 2010 $ (101,290)   $ (427)   $ 35,710   $ (131,489)   $ (197,496)
Period change   93,202     (95)     16,183     7,802     117,092
Balance, September 30, 2011 $ (8,088)   $ (522)   $ 51,893   $ (123,687)   $ (80,404)
                             
(1) Amount at September 30, 2011 includes $0.4 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.