Shareholders' Equity and Earnings Per Share

3 Months Ended

Mar. 31, 2021

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 2021 Board of Directors meeting, a quarterly cash dividend of $0.31 per share ($1.24 on an annualized basis) was declared. It was paid on February 25, 2021 to shareholders of record as of February 11, 2021.

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 Income (Loss)
Balance at January 1, 2021	$	70,737	$	(23,090)	$	(32,265)	$	15,382
Other comprehensive (loss) income during the period, net of tax, before reclassifications	(44,519)		32,345		2,180		(9,994)
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(154)		4,912		—		4,758
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(42)		—		—		(42)
Net other comprehensive (loss) income during the period, net of tax	$	(44,715)	$	37,257	$	2,180	$	(5,278)
Balance at March 31, 2021	$	26,022	$	14,167	$	(30,085)	$	10,104

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	67,007		(29,170)		(11,145)		26,692
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax	(359)		799		—		440
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax	(57)		—		—		(57)
Net other comprehensive income (loss) during the period, net of tax	$	66,591	$	(28,371)	$	(11,145)	$	27,075
Balance at March 31, 2020	$	81,573	$	(41,512)	$	(47,664)	$	(7,603)

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the
Details Regarding the Component of Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Impacted Line on the Consolidated Statements of Income
	March 31,
	2021		2020
Accumulated unrealized gains on securities
Gains included in net income	$	210	$	491	Gains (losses) on investment securities, net
	210		491		Income before taxes
Tax effect	(56)		(132)		Income tax expense
Net of tax	$	154	$	359	Net income
Accumulated unrealized gains on derivative instruments
Amount reclassified to interest expense on deposits	$	4,897	$	559	Interest on deposits
Amount reclassified to interest expense on other borrowings	669		292		Interest on other borrowings
Amount reclassified to interest expense on junior subordinated debentures	1,130		239		Interest on junior subordinated debentures
	(6,696)		(1,090)		Income before taxes
Tax effect	1,784		291		Income tax expense
Net of tax	$	(4,912)	$	(799)	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
(In thousands, except per share data)		March 31, 2021		March 31, 2020
Net income		$	153,148	$	62,812
Less: Preferred stock dividends		6,991		2,050
Net income applicable to common shares	(A)	$	146,157	$	60,762
Weighted average common shares outstanding	(B)	56,904		57,620
Effect of dilutive potential common shares
Common stock equivalents		681		575
Weighted average common shares and effect of dilutive potential common shares	(C)	57,585		58,195
Net income per common share:
Basic	(A/B)	$	2.57	$	1.05
Diluted	(A/C)	$	2.54	$	1.04

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.