Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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

9. OTHER COMPREHENSIVE INCOME

 

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

    Three Months Ended
    September 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 $ 2,975   $ (1,041)   $ 1,934
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   4,388     (1,683)     2,705
Less: Reclassification adjustment for net losses (gains) included in net income   3,023     (1,058)     1,965
Net change in unrealized holding gains (losses) on available-for-sale debt securities   10,386     (3,782)     6,604
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (121)     45     (76)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   26,672     (9,335)     17,337
Less: Reclassification adjustment for net (gains) losses included in net income   (3,085)     1,080     (2,005)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   23,587     (8,255)     15,332
                 
Re-measurement obligation   79,532     (27,836)     51,696
Defined benefit pension items   (31,672)     11,085     (20,587)
Unrealized gains (losses) for pension and other post-retirement obligations   47,860     (16,751)     31,109
                 
Total other comprehensive income (loss) $ 81,712   $ (28,743)   $ 52,969
                 
    Three Months Ended
    September 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 $ 9,322     (3,263)     6,059
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   61,074     (21,608)     39,466
Less: Reclassification adjustment for net losses (gains) included in net income   (4,169)     1,459     (2,710)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   66,227     (23,412)     42,815
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   (26)     9     (17)
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   21,595     (7,568)     14,027
Less: Reclassification adjustment for net (gains) losses included in net income   (13,298)     4,665     (8,633)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   8,297     (2,903)     5,394
                 
Amortization of net actuarial loss and prior service cost included in net income   4,990     (1,747)     3,243
                 
Total other comprehensive income $ 79,488   $ (28,053)   $ 51,435
                 
    Nine Months Ended
    September 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 $ 14,987   $ (5,245)   $ 9,742
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   (123,647)     43,413     (80,234)
Less: Reclassification adjustment for net losses (gains) included in net income   4,254     (1,489)     2,765
Net change in unrealized holding gains (losses) on available-for-sale debt securities   (104,406)     36,679     (67,727)
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   32     (12)     20
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   (71,579)     25,053     (46,526)
Less: Reclassification adjustment for net (gains) losses included in net income   (11,571)     4,049     (7,522)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (83,150)     29,102     (54,048)
                 
                 
Re-measurement obligation   79,532     (27,836)     51,696
Defined benefit pension items   (15,217)     5,326     (9,891)
Unrealized gains (losses) for pension and other post-retirement obligations   64,315     (22,510)     41,805
                 
Total other comprehensive income (loss) $ (123,209)   $ 43,259   $ (79,950)
                 
    Nine Months Ended
    September 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   15,574     (5,451)     10,123
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   92,436     (32,831)     59,605
Less: Reclassification adjustment for net losses (gains) included in net income   (3,906)     1,367     (2,539)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   104,104     (36,915)     67,189
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   361     (126)     235
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   5,139     (1,810)     3,329
Less: Reclassification adjustment for net (gains) losses included in net income   13,428     (4,689)     8,739
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   18,567     (6,499)     12,068
                 
                 
Amortization of net actuarial loss and prior service cost included in net income   14,968     (5,239)     9,729
                 
Total other comprehensive income $ 138,000   $ (48,779)   $ 89,221
                 

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the nine-month period ended September 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   (70,492)     20     (46,526)     51,696     (65,302)
  Amounts reclassified from accumulated OCI to earnings   2,765     ---     (7,522)     (9,891)     (14,648)
Period change   (67,727)     20     (54,048)     41,805     (79,950)
Balance, September 30, 2013 $ (29,423)   $ 214   $ (6,964)   $ (194,594)   $ (230,767)
                               
(1) Amount at 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 and nine-month periods ended September 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     Nine    
    Months Ended Months Ended  
(dollar amounts in thousands) September 30, 2013 September 30, 2013  
                 
Gains (losses) on debt securities:              
  Amortization of unrealized gains (losses) $ 187   $ 303   Interest income - held-to-maturity securities - taxable
  Realized gain (loss) on sale of securities   (3,124)     (2,755)   Noninterest income - net gains (losses) on sale of securities
  OTTI recorded   (86)     (1,802)   Noninterest income - net gains (losses) on sale of securities
      (3,023)     (4,254)   Total before tax
      1,058     1,489   Tax (expense) benefit
    $ (1,965)   $ (2,765)   Net of tax
                 
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 3,078   $ 11,367   Interest income - loans and leases
  Interest rate contracts   7     204   Noninterest income - other income
      3,085     11,571   Total before tax
      (1,080)     (4,049)   Tax (expense) benefit
    $ 2,005   $ 7,522   Net of tax
                 
Amortization of defined benefit pension and post-retirement items:    
  Actuarial gains (losses) $ (1,192)   $ (21,101)   Noninterest expense - personnel costs
  Prior service costs   ---     3,454   Noninterest expense - personnel costs
  Transition obligation              
  Curtailment   32,864     32,864   Noninterest expense - personnel costs
      31,672     15,217   Total before tax
      (11,085)     (5,326)   Tax (expense) benefit
    $ 20,587   $ 9,891   Net of tax