| Components of 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) |
|
|
|
|
|
|
|
|
|
|
| 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 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. |
|
| 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) |
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 |
|