Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME

v3.7.0.1
OTHER COMPREHENSIVE INCOME
3 Months Ended
Mar. 31, 2017
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME
The components of other comprehensive income for the three-month periods ended March 31, 2017 and 2016, were as follows:
 
Three Months Ended
March 31, 2017
 
Tax (Expense)
(dollar amounts in thousands)
Pretax
 
Benefit
 
After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
$
810

 
$
(286
)
 
$
524

Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
8,996

 
(2,795
)
 
6,201

Less: Reclassification adjustment for net losses (gains) included in net income
5,874

 
(2,077
)
 
3,797

Net change in unrealized holding gains (losses) on available-for-sale debt securities
15,680

 
(5,158
)
 
10,522

Net change in unrealized holding gains (losses) on available-for-sale equity securities

 

 

Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
(1,831
)
 
641

 
(1,190
)
Less: Reclassification adjustment for net (gains) losses included in net income
560

 
(196
)
 
364

Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
(1,271
)
 
445

 
(826
)
Net change in pension and other post-retirement obligations
708

 
(248
)
 
460

Total other comprehensive income (loss)
$
15,117

 
$
(4,961
)
 
$
10,156

 
Three Months Ended
March 31, 2016
 
Tax (Expense)
(dollar amounts in thousands)
Pretax
 
Benefit
 
After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold
$
(3,634
)
 
$
1,285

 
$
(2,349
)
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period
80,468

 
(28,685
)
 
51,783

Less: Reclassification adjustment for net losses (gains) included in net income
(464
)
 
164

 
(300
)
Net change in unrealized holding gains (losses) on available-for-sale debt securities
76,370

 
(27,236
)
 
49,134

Net change in unrealized holding gains (losses) on available-for-sale equity securities
104

 
(36
)
 
68

Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period
14,229

 
(4,980
)
 
9,249

Less: Reclassification adjustment for net (gains) losses included in net income
(644
)
 
224

 
(420
)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships
13,585

 
(4,756
)
 
8,829

Net change in pension and other post-retirement obligations
1,293

 
(452
)
 
841

Total other comprehensive income (loss)
$
91,352

 
$
(32,480
)
 
$
58,872

 
 
 
 
 
 
 
 
 
 
 
 

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2017 and 2016:
(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
December 31, 2015
$
8,361

 
$
176

 
$
(3,948
)
 
$
(230,747
)
 
$
(226,158
)
Other comprehensive income before reclassifications
49,434

 
68

 
9,249

 

 
58,751

Amounts reclassified from accumulated OCI to earnings
(300
)
 

 
(420
)
 
841

 
121

Period change
49,134

 
68

 
8,829

 
841

 
58,872

March 31, 2016
$
57,495

 
$
244

 
$
4,881

 
$
(229,906
)
 
$
(167,286
)
 
 
 
 
 
 
 
 
 
 
December 31, 2016
$
(192,764
)
 
$
287

 
$
(2,634
)
 
$
(205,905
)
 
$
(401,016
)
Other comprehensive income before reclassifications
6,725

 

 
(1,190
)
 

 
5,535

Amounts reclassified from accumulated OCI to earnings
3,797

 

 
364

 
460

 
4,621

Period change
10,522

 

 
(826
)
 
460

 
10,156

March 31, 2017
$
(182,242
)
 
$
287

 
$
(3,460
)
 
$
(205,445
)
 
$
(390,860
)
(1)
Amounts at March 31, 2017 and December 31, 2016 include $81 million and $82 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 periods ended March 31, 2017 and 2016:
 
Reclassifications out of accumulated OCI
Accumulated OCI components
Amounts reclassified from accumulated OCI
 
Location of net gain (loss) reclassified from accumulated OCI into earnings
 
Three Months Ended
 
 
(dollar amounts in thousands)
March 31, 2017
 
March 31, 2016
 
 
Gains (losses) on debt securities:
 
 
 
 
 
Amortization of unrealized gains (losses)
$
(3,606
)
 
$
464

 
Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities
(2,244
)
 

 
Noninterest income - net gains (losses) on sale of securities
OTTI recorded
(24
)
 

 
Noninterest income - net gains (losses) on sale of securities
 
(5,874
)
 
464

 
Total before tax
 
2,077

 
(164
)
 
Tax (expense) benefit
 
$
(3,797
)
 
$
300

 
Net of tax
Gains (losses) on cash flow hedging relationships:
 
 
 
 
 
Interest rate contracts
$
(560
)
 
$
645

 
Interest income - loans and leases
Interest rate contracts

 
(1
)
 
Noninterest income - other income
 
(560
)
 
644

 
Total before tax
 
196

 
(224
)
 
Tax (expense) benefit
 
$
(364
)
 
$
420

 
Net of tax
Amortization of defined benefit pension and post-retirement items:
 
 
 
 
 
Actuarial gains (losses)
$
(1,200
)
 
$
(1,785
)
 
Noninterest expense - personnel costs
Prior service credit
492

 
492

 
Noninterest expense - personnel costs
 
(708
)
 
(1,293
)
 
Total before tax
 
248

 
452

 
Tax (expense) benefit
 
$
(460
)
 
$
(841
)
 
Net of tax