XML 26 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Debt And Shareholders' Equity
 9 Months Ended
Sep. 30, 2017
Capitalization, Long-term Debt and Equity [Abstract]  
Debt And Shareholders' Equity
DEBT AND SHAREHOLDERS’ EQUITY
Long-term debt is summarized as follows:
(In millions)
September 30,
2017
 
December 31, 2016
 
 
 
 
Subordinated notes
$
247

 
$
247

Senior notes
135

 
287

Capital lease obligations
1

 
1

Total
$
383

 
$
535


The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount or unamortized debt issuance costs.
Debt Redemptions and Maturities
During the first quarter of 2017, $153 million of our 4.5% senior notes matured.
During the first nine months of 2016, $89 million of our 4.0% senior notes matured. In addition, we purchased $15 million of our 4.5% senior notes and redeemed $11 million of our 3.6% senior medium-term notes.
During the third quarter of 2016 we elected to exercise our right to redeem the following junior subordinated debentures related to trust preferred securities issued to the following trusts.
(Dollar amounts in millions)
Balance Redeemed
 
Coupon rate 1
 
Redemption date
 
 
 
 
 
 
Amegy Statutory Trust I
$
51

 
3mL+2.85%
 
September 17, 2016
Amegy Statutory Trust III
62

 
3mL+1.78%
 
September 15, 2016
Stockmen’s Statutory Trust II
8

 
3mL+3.15%
 
September 26, 2016
Stockmen’s Statutory Trust III
8

 
3mL+2.89%
 
September 17, 2016
Total
$
129

 
 
 
 
1 
Designation of “3mL” is three-month London Interbank Offered Rate (“LIBOR”).
Shareholders’ Equity
During the third quarter of 2017, the Company continued its common stock buyback program and repurchased 2.5 million shares of common stock outstanding with a fair value of $115 million at an average price of $45.45 per share, and has repurchased 4.7 million shares of common stock outstanding with a fair value $205 million at an average price of $43.72 per share during the first nine months of 2017. During the first nine months of 2016, the Company repurchased 1.5 million shares of common stock outstanding with a fair value of $45 million, at an average price of $30.64 per share.
During the second quarter of 2017, we redeemed all outstanding shares of our 7.9% Series F preferred stock for a cash payment of approximately $144 million. Dividends paid to these redeemed shares amounted to $0.49375 per depositary share for a total amount of $3 million. The total one-time reduction to net earnings applicable to common shareholders associated with the preferred stock redemption was $2 million due to the accelerated recognition of preferred stock issuance costs.
On April 25, 2016, we launched a tender offer to purchase up to $120 million par amount of certain outstanding preferred stock. Our preferred stock decreased by $119 million in the second quarter of 2016 as a result of the tender offer, including the purchase of $27 million of our Series I preferred stock, $59 million of our Series J preferred stock, and $33 million of our Series G preferred stock for an aggregate cash payment of $126 million. The total one-time reduction to net earnings applicable to common shareholders associated with the preferred stock redemption was $10 million.
Accumulated Other Comprehensive Income
Accumulated other comprehensive income (loss) was $(57) million at September 30, 2017 compared to $(122) million at December 31, 2016. Changes in AOCI by component are as follows:
(In millions)
Net unrealized gains (losses) on investment securities
 
Net unrealized gains (losses) on derivatives and other
 
Pension and post-retirement
 
Total
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
Balance at December 31, 2016
$
(93
)
 
$
2

 
$
(31
)
 
$
(122
)
OCI before reclassifications, net of tax
65

 
2

 
—

 
67

Amounts reclassified from AOCI, net of tax
—

 
(2
)
 
—

 
(2
)
OCI
65

 
—

 
—

 
65

Balance at September 30, 2017
$
(28
)
 
$
2

 
$
(31
)
 
$
(57
)
Income tax expense included in OCI
$
40

 
$
—

 
$
—

 
$
40

Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
Balance at December 31, 2015
$
(18
)
 
$
2

 
$
(38
)
 
$
(54
)
OCI (loss) before reclassifications, net of tax
54

 
16

 
(1
)
 
69

Amounts reclassified from AOCI, net of tax
—

 
(5
)
 
—

 
(5
)
OCI (loss)
54

 
11

 
(1
)
 
64

Balance at September 30, 2016
$
36

 
$
13

 
$
(39
)
 
$
10

Income tax expense included in OCI (loss)
$
34

 
$
6

 
$
1

 
$
41


 
 
Amounts reclassified
from AOCI 1
 
Amounts reclassified
from AOCI 1
 
Statement of income (SI)
Balance sheet (BS)
 
 
(In millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
 
Details about AOCI components
 
2017
 
2016
 
2017
 
2016
 
 
Affected line item
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on derivative instruments
 
$
—

 
$
3

 
$
3

 
$
9

 
SI
 
Interest and fees on loans
Income tax expense
 
—

 
1

 
1

 
4

 
 
 
 
Amounts Reclassified from AOCI
 
$
—

 
$
2

 
$
2

 
$
5

 
 
 
 

1 
Positive reclassification amounts indicate increases to earnings in the statement of income and decreases to balance sheet assets.