Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

v2.4.1.9
Other Comprehensive Income
 3 Months Ended
Mar. 31, 2015
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

9. OTHER COMPREHENSIVE INCOME

The components of other comprehensive income for the three-month periods ended March 31, 2015 and 2014, were as follows:

Three Months Ended
March 31, 2015
Tax (Expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 5,245 $ (1,855) $ 3,390
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 60,503 (21,477) 39,026
Less: Reclassification adjustment for net losses (gains) included in net income (121) 42 (79)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 65,627 (23,290) 42,337
Net change in unrealized holding gains (losses) on available-for-sale equity securities 9 (3) 6
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period 28,144 (9,850) 18,294
Less: Reclassification adjustment for net (gains) losses included in net income (123) 43 (80)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 28,021 (9,807) 18,214
Net change in pension and other post-retirement obligations 1,389 (486) 903
Total other comprehensive income (loss) $ 95,046 $ (33,586) $ 61,460
Three Months Ended
March 31, 2014
Tax (Expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 7,408 $ (2,619) $ 4,789
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 26,245 (9,332) 16,913
Less: Reclassification adjustment for net losses (gains) included in net income (15,375) 5,381 (9,994)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 18,278 (6,570) 11,708
Net change in unrealized holding gains (losses) on available-for-sale equity securities 53 (19) 34
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period 2,805 (982) 1,823
Less: Reclassification adjustment for net (gains) losses included in net income (2,892) 1,012 (1,880)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships (87) 30 (57)
Net change in pension and other post-retirement obligations 888 (311) 577
Total other comprehensive income (loss) $ 19,132 $ (6,870) $ 12,262

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2015 and 2014:

(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, 2013 $ (39,234) $ 292 $ (18,844) $ (156,223) $ (214,009)
Other comprehensive income before reclassifications 21,702 34 1,823 --- 23,559
Amounts reclassified from accumulated OCI to earnings (9,994) --- (1,880) 577 (11,297)
Period change 11,708 34 (57) 577 12,262
Balance, March 31, 2014 $ (27,526) $ 326 $ (18,901) $ (155,646) $ (201,747)
Balance, December 31, 2014 $ 15,137 $ 484 $ (12,233) $ (225,680) $ (222,292)
Other comprehensive income before reclassifications 42,416 6 18,294 --- 60,716
Amounts reclassified from accumulated OCI to earnings (79) --- (80) 903 744
Period change 42,337 6 18,214 903 61,460
Balance, March 31, 2015 $ 57,474 $ 490 $ 5,981 $ (224,777) $ (160,832)
(1) Amounts at March 31, 2015 and December 31, 2014 include $0.9 million and $0.8 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 periods ended March 31, 2015 and 2014:

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) March 31, 2015 March 31, 2014
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 121 $ 175 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities --- 15,200 Noninterest income - net gains (losses) on sale of securities
121 15,375 Total before tax
(42) (5,381) Tax (expense) benefit
$ 79 $ 9,994 Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 133 $ 2,892 Interest income - loans and leases
Interest rate contracts (10) --- Noninterest income - other income
123 2,892 Total before tax
(43) (1,012) Tax (expense) benefit
$ 80 $ 1,880 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ (1,389) $ (888) Noninterest expense - personnel costs
(1,389) (888) Total before tax
486 311 Tax (expense) benefit
$ (903) $ (577) Net of tax