Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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Other Comprehensive Income
3 Months Ended
Mar. 31, 2014
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

9. OTHER COMPREHENSIVE INCOME

 

The components of other comprehensive income for the three-month periods ended March 31, 2014 and 2013, were as follows:

    Three Months Ended
    March 31, 2014
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
                 
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 7,408   $ (2,619)   $ 4,789
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   26,245     (9,332)     16,913
Less: Reclassification adjustment for net losses (gains) included in net income   (15,375)     5,381     (9,994)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   18,278     (6,570)     11,708
                 
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   2,805     (982)     1,823
Less: Reclassification adjustment for net (gains) losses included in net income   (2,892)     1,012     (1,880)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   (87)     30     (57)
                 
Unrealized gains (losses) for pension and other post-retirement obligations   888     (311)     577
                 
Total other comprehensive income (loss) $ 19,132   $ (6,870)   $ 12,262
                 
    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 (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 $ (14,007)   $ 4,869   $ (9,138)
                 
                 

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2014 and 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   (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)
                               
Balance, December 31, 2013 $ (39,234)   $ 292   $ (18,844)   $ (156,223)   $ (214,009)
  Other comprehensive income before reclassifications   21,702     34     1,823     ---     23,559
  Amounts reclassified from accumulated OCI to earnings   (9,994)     ---     (1,880)     577     (11,297)
Period change   11,708     34     (57)     577     12,262
Balance, March 31, 2014 $ (27,526)   $ 326   $ (18,901)   $ (155,646)   $ (201,747)
                               
(1) Amounts at March 31, 2014 and December 31, 2013 include $0.3 and $0.2 million, respectively, of net unrealized losses 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 periods ended March 31, 2014 and 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     Three    
    Months Ended Months Ended  
(dollar amounts in thousands) March 31, 2014 March 31, 2013  
                 
Gains (losses) on debt securities:              
  Amortization of unrealized gains (losses) $ 175   $ 55   Interest income - held-to-maturity securities - taxable
  Realized gain (loss) on sale of securities   15,200     187   Noninterest income - net gains (losses) on sale of securities
  OTTI recorded   ---     (696)   Noninterest income - net gains (losses) on sale of securities
      15,375     (454)   Total before tax
      (5,381)     159   Tax (expense) benefit
    $ 9,994   $ (295)   Net of tax
                 
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 2,892   $ 3,916   Interest income - loans and leases
  Interest rate contracts   ---     110   Noninterest income - other income
      2,892     4,026   Total before tax
      (1,012)     (1,410)   Tax (expense) benefit
    $ 1,880   $ 2,616   Net of tax
                 
Amortization of defined benefit pension and post-retirement items:    
  Actuarial gains (losses) $ (888)   $ (9,954)   Noninterest expense - personnel costs
  Prior service costs   ---     1,727   Noninterest expense - personnel costs
  Curtailment   ---     ---   Noninterest expense - personnel costs
      (888)     (8,227)   Total before tax
      311     2,879   Tax (expense) benefit
    $ (577)   $ (5,348)   Net of tax