Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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Other Comprehensive Income
3 Months Ended
Jun. 30, 2013
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

8. OTHER COMPREHENSIVE INCOME

 

The components of other comprehensive income for the three-month and six-month periods ended June 30, 2013 and 2012, were as follows:

    Three Months Ended
    June 30, 2013
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 6,102   $ (2,157)   $ 3,945
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   (119,321)     42,105     (77,216)
Less: Reclassification adjustment for net losses (gains) included in net income   926     (327)     599
Net change in unrealized holding gains (losses) on available-for-sale debt securities   (112,293)     39,621     (72,672)
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (68)     21     (47)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (82,327)     28,815     (53,512)
Less: Reclassification adjustment for net (gains) losses included in net income   (4,459)     1,561     (2,898)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (86,786)     30,376     (56,410)
                 
Amortization of net actuarial loss and prior service cost included in net income   8,227     (2,879)     5,348
                 
Total other comprehensive income (loss) $ (190,920)   $ 67,139   $ (123,781)
                 
    Three Months Ended
    June 30, 2012
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ (713)     250     (463)
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   4,575     (1,661)     2,914
Less: Reclassification adjustment for net losses (gains) included in net income   (350)     123     (227)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   3,512     (1,288)     2,224
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   44     (15)     29
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   23,211     (8,117)     15,094
Less: Reclassification adjustment for net (gains) losses included in net income   1,932     (683)     1,249
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   25,143     (8,800)     16,343
                 
Amortization of net actuarial loss and prior service cost included in net income   4,990     (1,747)     3,243
                 
Total other comprehensive income $ 33,689   $ (11,850)   $ 21,839
                 
    Six Months Ended
    June 30, 2013
     
    Tax (expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 11,996   $ (4,242)   $ 7,754
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   (128,019)     45,138     (82,881)
Less: Reclassification adjustment for net losses (gains) included in net income   1,231     (435)     796
Net change in unrealized holding gains (losses) on available-for-sale debt securities   (114,792)     40,461     (74,331)
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   152     (56)     96
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (98,254)     34,389     (63,865)
Less: Reclassification adjustment for net (gains) losses included in net income   (8,485)     2,970     (5,515)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (106,739)     37,359     (69,380)
                 
Amortization of net actuarial loss and prior service cost included in net income   16,455     (5,759)     10,696
                 
Total other comprehensive income $ (204,924)   $ 72,005   $ (132,919)
                 
    Six Months Ended
    June 30, 2012
     
    Tax (expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold   6,252     (2,188)     4,064
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   31,362     (11,223)     20,139
Less: Reclassification adjustment for net losses (gains) included in net income   263     (92)     171
Net change in unrealized holding gains (losses) on available-for-sale debt securities   37,877     (13,503)     24,374
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   387     (135)     252
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (16,457)     5,759     (10,698)
Less: Reclassification adjustment for net (gains) losses included in net income   26,725     (9,353)     17,372
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   10,268     (3,594)     6,674
                 
Amortization of net actuarial loss and prior service cost included in net income   9,979     (3,493)     6,486
                 
Total other comprehensive income $ 58,511   $ (20,725)   $ 37,786
                 

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the six-month period ended June 30, 2013:

(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, 2012 $ 38,304   $ 194   $ 47,084   $ (236,399)   $ (150,817)
  Other comprehensive income before reclassifications   (75,127)     96     (63,865)     ---     (138,896)
  Amounts reclassified from accumulated OCI   796     ---     (5,515)     10,696     5,977
Period change   (74,331)     96     (69,380)     10,696     (132,919)
Balance, June 30, 2013 $ (36,027)   $ 290   $ (22,296)   $ (225,703)   $ (283,736)
                               
(1) Amount at June 30, 2013 and December 31, 2012 includes $0.1 million and $0.2 million, respectively, 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 and six-month periods ended June 30, 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     Six    
    Months Ended Months Ended  
(dollar amounts in thousands) June 30, 2013 June 30, 2013  
                 
Gains (losses) on debt securities:              
  Amortization of unrealized gains (losses) $ 60   $ 115   Interest income - held-to-maturity securities - taxable
  Realized gain (loss) on sale of securities   34     370   Noninterest income - net gains (losses) on sale of securities
  OTTI recorded   (1,020)     (1,716)   Noninterest income - net gains (losses) on sale of securities
      (926)     (1,231)   Total before tax
      327     435   Tax (expense) benefit
    $ (599)   $ (796)   Net of tax
                 
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 4,374   $ 8,290   Interest income - loans and leases
  Interest rate contracts   85     195   Noninterest income - other income
      4,459     8,485   Total before tax
      (1,561)     (2,970)   Tax (expense) benefit
    $ 2,898   $ 5,515   Net of tax
                 
Amortization of defined benefit pension and post-retirement items:    
  Actuarial gains (losses) $ (9,954)   $ (19,909)   Noninterest expense - personnel costs
  Prior service costs   1,727     3,454   Noninterest expense - personnel costs
      (8,227)     (16,455)   Total before tax
      2,879     5,759   Tax (expense) benefit
    $ (5,348)   $ (10,696)   Net of tax