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Shareholders' Equity and Earnings Per Share
 6 Months Ended
Jun. 30, 2020
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]  
Shareholders' Equity and Earnings Per Share Shareholders’ Equity and Earnings Per Share

Series D Preferred Stock

In June 2015, the Company issued and sold 5,000,000 shares of fixed-to-floating non-cumulative perpetual preferred stock, Series D, liquidation preference $25 per share (the “Series D Preferred Stock”) for $125.0 million in a public offering. When, as and if declared, dividends on the Series D Preferred Stock are payable quarterly in arrears at a fixed rate of 6.50% per annum from the original issuance date to, but excluding, July 15, 2025, and from (and including) that date at a floating rate equal to three-month LIBOR plus a spread of 4.06% per annum.

Series E Preferred Stock

In May 2020, the Company issued 11,500 shares of fixed-rate reset non-cumulative perpetual preferred stock, Series E, liquidation preference $25,000 per share (the “Series E Preferred Stock”) as part of a $287.5 million public offering of 11,500,000 depositary shares, each representing a 1/1,000th interest in a share of Series E Preferred Stock. When, as and if declared, dividends on the Series E Preferred Stock are payable quarterly in arrears at a fixed rate of 6.875% per annum starting on October 15, 2020.

Other

At the January 2020 Board of Directors meeting, a quarterly cash dividend of $0.28 per share ($1.12 on an annualized basis) was declared. It was paid on February 20, 2020 to shareholders of record as of February 6, 2020. At the April 2020 Board of Directors meeting, a quarterly cash dividend of $0.28 per share ($1.12 on an annualized basis) was declared. It was paid on May 21, 2020 to shareholders of record as of May 7, 2020.



Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).
 
Accumulated
Unrealized
Gains (Losses)
on Securities
 
Accumulated
Unrealized (Losses) Gains on
Derivative
Instruments
 
Accumulated
Foreign
Currency
Translation
Adjustments
 
Total
Accumulated
Other
Comprehensive
Loss
Balance at April 1, 2020
$
81,573

 
$
(41,512
)
 
$
(47,664
)
 
$
(7,603
)
Other comprehensive income during the period, net of tax, before reclassifications
3,718

 
(6,092
)
 
5,167

 
2,793

Amount reclassified from accumulated other comprehensive gain (loss) into net income, net of tax
249

 
3,998

 
—

 
4,247

Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(34
)
 
—

 
—

 
(34
)
Net other comprehensive income (loss) during the period, net of tax
$
3,933

 
$
(2,094
)
 
$
5,167

 
$
7,006

Balance at June 30, 2020
$
85,506

 
$
(43,606
)
 
$
(42,497
)
 
$
(597
)
 
 
 
 
 
 
 
 
Balance at January 1, 2020
$
14,982

 
$
(13,141
)
 
$
(36,519
)
 
$
(34,678
)
Other comprehensive income (loss) during the period, net of tax, before reclassifications
70,725

 
(35,262
)
 
(5,978
)
 
29,485

Amount reclassified from accumulated other comprehensive gain (loss) into net income, net of tax
(110
)
 
4,797

 
—

 
4,687

Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(91
)
 
—

 
—

 
(91
)
Net other comprehensive income (loss) during the period, net of tax
$
70,524

 
$
(30,465
)
 
$
(5,978
)
 
$
34,081

Balance at June 30, 2020
$
85,506

 
$
(43,606
)
 
$
(42,497
)
 
$
(597
)
Balance at April 1, 2019
$
(14,451
)
 
$
4,206

 
$
(40,099
)
 
$
(50,344
)
Other comprehensive income (loss) during the period, net of tax, before reclassifications
19,200

 
(13,257
)
 
2,505

 
8,448

Amount reclassified from accumulated other comprehensive loss into net income, net of tax
(383
)
 
(2,993
)
 
—

 
(3,376
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(157
)
 
—

 
—

 
(157
)
Net other comprehensive income (loss) during the period, net of tax
$
18,660

 
$
(16,250
)
 
$
2,505

 
$
4,915

Balance at June 30, 2019
$
4,209

 
$
(12,044
)
 
$
(37,594
)
 
$
(45,429
)
 
 
 
 
 
 
 
 
Balance at January 1, 2019
$
(42,353
)
 
$
7,857

 
$
(42,376
)
 
$
(76,872
)
Other comprehensive income (loss) during the period, net of tax, before reclassifications
47,156

 
(14,296
)
 
4,782

 
37,642

Amount reclassified from accumulated other comprehensive loss into net income, net of tax
(334
)
 
(5,605
)
 
—

 
(5,939
)
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax
(260
)
 
—

 
—

 
(260
)
Net other comprehensive income (loss) during the period, net of tax
$
46,562

 
$
(19,901
)
 
$
4,782

 
$
31,443

Balance at June 30, 2019
$
4,209

 
$
(12,044
)
 
$
(37,594
)
 
$
(45,429
)


 
 
Amount Reclassified from Accumulated Other Comprehensive Income for the
 
 
Details Regarding the Component of Accumulated Other Comprehensive Income
 
Three Months Ended
 
Six Months Ended
 
Impacted Line on the
Consolidated Statements of Income
 
June 30,
 
June 30,
 
 
2020
 
2019
 
2020
 
2019
 
Accumulated unrealized gains (losses) on securities
 
 
 
 
 
 
 
 
 
 
Gains (losses) included in net income
 
$
(341
)
 
$
523

 
$
150

 
$
456

 
Gains (losses) on investment securities, net
 
 
(341
)
 
523

 
150

 
456

 
Income before taxes
Tax effect
 
92

 
(140
)
 
(40
)
 
(122
)
 
Income tax expense
Net of tax
 
$
(249
)
 
$
383

 
$
110

 
$
334

 
Net income
 
 
 
 
 
 
 
 
 
 
 
Accumulated unrealized gains (losses) on derivative instruments
 
 
 
 
 
 
 
 
 
 
Amount reclassified to interest expense on deposits
 
$
4,363

 
$
(4,179
)
 
$
4,922

 
$
(7,768
)
 
Interest on deposits
Amount reclassified to interest expense on other borrowings
 
426

 
98

 
718

 
125

 
Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures
 
662

 
—

 
901

 
—

 
Interest on junior subordinated debentures
 
 
(5,451
)
 
4,081

 
(6,541
)
 
7,643

 
Income before taxes
Tax effect
 
1,453

 
(1,088
)
 
1,744

 
(2,038
)
 
Income tax expense
Net of tax
 
$
(3,998
)
 
$
2,993

 
$
(4,797
)
 
$
5,605

 
Net income


Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the periods indicated:
 
 
 
Three Months Ended
 
Six Months Ended
(In thousands, except per share data)
 
 
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
Net income
 
 
$
21,659

 
$
81,466

 
$
84,471

 
$
170,612

Less: Preferred stock dividends
 
 
2,050

 
2,050

 
4,100

 
4,100

Net income applicable to common shares
(A)
 
$
19,609

 
$
79,416

 
$
80,371

 
$
166,512

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
(B)
 
$
57,567

 
$
56,662

 
$
57,593

 
$
56,596

Effect of dilutive potential common shares
 
 
 
 
 
 
 
 
 
Common stock equivalents
 
 
414

 
699

 
481

 
700

Weighted average common shares and effect of dilutive potential common shares
(C)
 
$
57,981

 
$
57,361

 
$
58,074

 
$
57,296

Net income per common share:
 
 
 
 
 
 
 
 
 
Basic
(A/B)
 
$
0.34

 
$
1.40

 
$
1.40

 
$
2.94

Diluted
(A/C)
 
$
0.34

 
$
1.38

 
$
1.38

 
$
2.91



Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share.