Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

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Other Comprehensive Income
 3 Months Ended
Jun. 30, 2014
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

9. OTHER COMPREHENSIVE INCOME

 

The components of other comprehensive income for the three-month and six-month periods ended June 30, 2014 and 2013, were as follows:

    Three Months Ended
    June 30, 2014
    Tax (Expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
                 
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 1,252   $ (443)   $ 809
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   36,437     (13,015)     23,422
Less: Reclassification adjustment for net losses (gains) included in net income   (284)     100     (184)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   37,405     (13,358)     24,047
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   323     (113)     210
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   27,253     (9,539)     17,714
Less: Reclassification adjustment for net (gains) losses included in net income   (813)     285     (528)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   26,440     (9,254)     17,186
                 
                 
Defined benefit pension items   888     (311)     577
Net change in pension and other post-retirement obligations   888     (311)     577
                 
Total other comprehensive income $ 65,056   $ (23,036)   $ 42,020
                 
    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)
                 
Net change in pension and other post-retirement obligations   8,227     (2,879)     5,348
                 
Total other comprehensive income (loss) $ (190,920)   $ 67,139   $ (123,781)
                 
    Six Months Ended
    June 30, 2014
     
    Tax (expense)
(dollar amounts in thousands)   Pretax     Benefit     After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 8,660   $ (3,062)   $ 5,598
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period   62,682     (22,347)     40,335
Less: Reclassification adjustment for net losses (gains) included in net income   (15,659)     5,481     (10,178)
Net change in unrealized holding gains (losses) on available-for-sale debt securities   55,683     (19,928)     35,755
                 
Net change in unrealized holding gains (losses) on available-for-sale equity securities   376     (132)     244
                 
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period   30,058     (10,521)     19,537
Less: Reclassification adjustment for net (gains) losses included in net income   (3,705)     1,297     (2,408)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships   26,353     (9,224)     17,129
                 
                 
Defined benefit pension items   1,776     (622)     1,154
Net change in pension and other post-retirement obligations   1,776     (622)     1,154
                 
Total other comprehensive income $ 84,188   $ (29,906)   $ 54,282
                 
    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)
                 
                 
Net change in pension and other post-retirement obligations   16,455     (5,759)     10,696
                 
Total other comprehensive income (loss) $ (204,924)   $ 72,005   $ (132,919)
                 

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the three-month and six-month periods ended June 30, 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   (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)
                               
Balance, December 31, 2013 $ (39,234)   $ 292   $ (18,844)   $ (156,223)   $ (214,009)
  Other comprehensive income before reclassifications   45,933     244     19,537     ---     65,714
  Amounts reclassified from accumulated OCI to earnings   (10,178)     ---     (2,408)     1,154     (11,432)
Period change   35,755     244     17,129     1,154     54,282
Balance, June 30, 2014 $ (3,479)   $ 536   $ (1,715)   $ (155,069)   $ (159,727)
                               
(1) Amounts at June 30, 2014 and December 31, 2013 include $0.5 million 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 and six-month periods ended June 30, 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) June 30, 2014 June 30, 2013  
                 
Gains (losses) on debt securities:              
  Amortization of unrealized gains (losses) $ 163   $ 60   Interest income - held-to-maturity securities - taxable
  Realized gain (loss) on sale of securities   121     34   Noninterest income - net gains (losses) on sale of securities
  OTTI recorded   ---     (1,020)   Noninterest income - net gains (losses) on sale of securities
      284     (926)   Total before tax
      (100)     327   Tax (expense) benefit
    $ 184   $ (599)   Net of tax
                 
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 895   $ 4,374   Interest income - loans and leases
  Interest rate contracts   (82)     85   Noninterest income - other income
      813     4,459   Total before tax
      (285)     (1,561)   Tax (expense) benefit
    $ 528   $ 2,898   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

Reclassifications out of accumulated OCI
                 
      Amounts   Location of net gain (loss)
      reclassified from   reclassified from accumulated
Accumulated OCI components accumulated OCI OCI into earnings
      Six     Six    
    Months Ended Months Ended  
(dollar amounts in thousands) June 30, 2014 June 30, 2013  
                 
Gains (losses) on debt securities:              
  Amortization of unrealized gains (losses) $ 338   $ 115   Interest income - held-to-maturity securities - taxable
  Realized gain (loss) on sale of securities   15,321     370   Noninterest income - net gains (losses) on sale of securities
  OTTI recorded   ---     (1,716)   Noninterest income - net gains (losses) on sale of securities
      15,659     (1,231)   Total before tax
      (5,481)     435   Tax (expense) benefit
    $ 10,178   $ (796)   Net of tax
                 
Gains (losses) on cash flow hedging relationships:          
  Interest rate contracts $ 3,787   $ 8,290   Interest income - loans and leases
  Interest rate contracts   (82)     195   Noninterest income - other income
      3,705     8,485   Total before tax
      (1,297)     (2,970)   Tax (expense) benefit
    $ 2,408   $ 5,515   Net of tax
                 
Amortization of defined benefit pension and post-retirement items:    
  Actuarial gains (losses) $ (1,776)   $ (19,909)   Noninterest expense - personnel costs
  Prior service costs   ---     3,454   Noninterest expense - personnel costs
  Transition obligation              
  Curtailment   ---     ---   Noninterest expense - personnel costs
      (1,776)     (16,455)   Total before tax
      622     5,759   Tax (expense) benefit
    $ (1,154)   $ (10,696)   Net of tax