| Components of 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) |
| |
|
|
|
|
|
|
|
|
|
| Activity in accumulated other comprehensive income, net of tax |
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. |
|
| Reclassification Out Of Accumulated OCI |
| 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 |
|