Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

v2.4.0.8
Other Comprehensive Income
 3 Months Ended
Sep. 30, 2014
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, 2014 and 2013, were as follows:

Three Months Ended
September 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 $ 3,289 $ (1,163) $ 2,126
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period (14,000) 4,908 (9,092)
Less: Reclassification adjustment for net losses (gains) included in net income 250 (88) 162
Net change in unrealized holding gains (losses) on available-for-sale debt securities (10,461) 3,657 (6,804)
Net change in unrealized holding gains (losses) on available-for-sale equity securities 18 (6) 12
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period (32,512) 11,379 (21,133)
Less: Reclassification adjustment for net (gains) losses included in net income (148) 52 (96)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships (32,660) 11,431 (21,229)
Net change in pension and other post-retirement obligations 8,818 (3,086) 5,732
Total other comprehensive income (loss) $ (34,285) $ 11,996 $ (22,289)
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)
Net change in pension and other post-retirement obligations 47,860 (16,751) 31,109
Total other comprehensive income (loss) $ 81,712 $ (28,743) $ 52,969
Nine Months Ended
September 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 $ 11,949 $ (4,225) $ 7,724
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 48,682 (17,439) 31,243
Less: Reclassification adjustment for net losses (gains) included in net income (15,409) 5,393 (10,016)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 45,222 (16,271) 28,951
Net change in unrealized holding gains (losses) on available-for-sale equity securities 394 (138) 256
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period (2,454) 858 (1,596)
Less: Reclassification adjustment for net (gains) losses included in net income (3,853) 1,349 (2,504)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships (6,307) 2,207 (4,100)
Net change in pension and other post-retirement obligations 10,594 (3,708) 6,886
Total other comprehensive income (loss) $ 49,903 $ (17,910) $ 31,993
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)
Net change in pension and other post-retirement obligations 64,315 (22,510) 41,805
Total other comprehensive income (loss) $ (123,209) $ 43,259 $ (79,950)

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the three-month and nine-month periods ended September 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 (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)
Balance, December 31, 2013 $ (39,234) $ 292 $ (18,844) $ (156,223) $ (214,009)
Other comprehensive income before reclassifications 38,967 256 (1,596) --- 37,627
Amounts reclassified from accumulated OCI to earnings (10,016) --- (2,504) 6,886 (5,634)
Period change 28,951 256 (4,100) 6,886 31,993
Balance, September 30, 2014 $ (10,283) $ 548 $ (22,944) $ (149,337) $ (182,016)
(1) Amounts at September 30, 2014 and December 31, 2013 include $0.6 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 nine-month periods ended September 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) September 30, 2014 September 30, 2013
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 138 $ 187 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities (388) (3,125) Noninterest income - net gains (losses) on sale of securities
OTTI recorded --- (85) Noninterest income - net gains (losses) on sale of securities
(250) (3,023) Total before tax
88 1,058 Tax (expense) benefit
$ (162) $ (1,965) Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 148 $ 3,078 Interest income - loans and leases
Interest rate contracts --- 7 Noninterest income - other income
148 3,085 Total before tax
(52) (1,080) Tax (expense) benefit
$ 96 $ 2,005 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ (8,818) $ (1,192) Noninterest expense - personnel costs
Prior service costs --- --- Noninterest expense - personnel costs
Curtailment --- 32,864 Noninterest expense - personnel costs
(8,818) 31,672 Total before tax
3,086 (11,085) Tax (expense) benefit
$ (5,732) $ 20,587 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
Nine Nine
Months Ended Months Ended
(dollar amounts in thousands) September 30, 2014 September 30, 2013
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 476 $ 303 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities 14,933 (2,754) Noninterest income - net gains (losses) on sale of securities
OTTI recorded --- (1,803) Noninterest income - net gains (losses) on sale of securities
15,409 (4,254) Total before tax
(5,393) 1,489 Tax (expense) benefit
$ 10,016 $ (2,765) Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 3,935 $ 11,367 Interest income - loans and leases
Interest rate contracts (82) 204 Noninterest income - other income
3,853 11,571 Total before tax
(1,349) (4,049) Tax (expense) benefit
$ 2,504 $ 7,522 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ (10,594) $ (21,101) Noninterest expense - personnel costs
Prior service costs --- 3,454 Noninterest expense - personnel costs
Curtailment --- 32,864 Noninterest expense - personnel costs
(10,594) 15,217 Total before tax
3,708 (5,326) Tax (expense) benefit
$ (6,886) $ 9,891 Net of tax