Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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Other Comprehensive Income
3 Months Ended
Mar. 31, 2013
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

8. OTHER COMPREHENSIVE INCOME

 

The components of other comprehensive income for the three-month periods ended March 31, 2013 and 2012, were as follows:

    Three Months Ended
    March 31, 2013
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 5,894   $ (2,063)   $ 3,831
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   (8,847)     3,062     (5,785)
Less: Reclassification adjustment for net losses (gains) included in net income   454     (159)     295
Net change in unrealized holding gains (losses) on available-for-sale debt securities   (2,499)     840     (1,659)
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   220     (77)     143
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (15,929)     5,575     (10,354)
Less: Reclassification adjustment for net losses (gains) losses included in net income   (4,026)     1,410     (2,616)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (19,955)     6,985     (12,970)
                 
Amortization of net actuarial loss and prior service cost included in net income   8,227     (2,879)     5,348
                 
Total other comprehensive income (loss) $ (14,007)   $ 4,869   $ (9,138)
                 
    Three Months Ended
    March 31, 2012
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 6,964     (2,437)     4,527
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   26,788     (9,563)     17,225
Less: Reclassification adjustment for net losses (gains) included in net income   613     (215)     398
Net change in unrealized holding gains (losses) on available-for-sale debt securities   34,365     (12,215)     22,150
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   343     (120)     223
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (39,669)     13,877     (25,792)
Less: Reclassification adjustment for net losses (gains) losses included in net income   24,793     (8,670)     16,123
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (14,876)     5,207     (9,669)
                 
Amortization of net actuarial loss and prior service cost included in net income   4,989     (1,746)     3,243
                 
Total other comprehensive income $ 24,821   $ (8,874)   $ 15,947
                 

Activity in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2013 and 2012, 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, 2011 $ (29,267)   $ (30)   $ 40,898   $ (185,364)   $ (173,763)
Period change   22,150     223     (9,669)     3,243     15,947
Balance, March 31, 2012 $ (7,117)   $ 193   $ 31,229   $ (182,121)   $ (157,816)
                               
Balance, December 31, 2012 $ 38,304   $ 194   $ 47,084   $ (236,399)   $ (150,817)
  Other comprehensive income before reclassifications   (1,954)     143     (10,354)     ---     (12,165)
  Amounts reclassified from accumulated OCI   295     ---     (2,616)     5,348     3,027
Period change   (1,659)     143     (12,970)     5,348     (9,138)
Balance, March 31, 2013 $ 36,645   $ 337   $ 34,114   $ (231,051)   $ (159,955)
                               
(1) Amount at March 31, 2013 and December 31, 2012 includes $0.2 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.

The following table presents the reclassification adjustments out of accumulated OCI included in net income and the impacted line items as listed on the Unaudited Condensed Consolidated Statements of Income for the three-month period ended March 31, 2013:

Reclassifications out of accumulated OCI
             
      Amounts   Location of net gain (loss)  
      reclassified from   reclassified from accumulated  
Accumulated OCI components accumulated OCI OCI into earnings  
             
    Three Months Ended    
(dollar amounts in thousands)   March 31, 2013      
             
Gains (losses) on debt securities:          
  Amortization of unrealized gains (losses) $ 55   Interest income - held-to-maturity securities - taxable  
  Realized gain (loss) on sale of securities   187   Noninterest income - net gains (losses) on sale of securities  
  OTTI recorded   (696)   Noninterest income - net gains (losses) on sale of securities  
      (454)   Total before tax  
      159   Tax (expense) benefit  
    $ (295)   Net of tax  
             
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 3,916   Interest income - loans and leases  
      110   Noninterest income - other income  
      4,026   Total before tax  
      (1,410)   Tax (expense) benefit  
    $ 2,616   Net of tax  
             
Amortization of defined benefit pension and post-retirement items:      
  Actuarial gains (losses) $ (9,954)   Noninterest expense - personnel costs  
  Prior service costs   1,727   Noninterest expense - personnel costs  
      (8,227)   Total before tax  
      2,879   Tax (expense) benefit  
    $ (5,348)   Net of tax