Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders’ Equity and Regulatory Matters [Abstract]

Stockholders' Equity and Regulatory Matters

STOCKHOLDERS’ EQUITY

Total stockholders’ equity at December 31, 2019 was $2.04 billion, compared to $1.90 billion at December 31, 2018. The increase in stockholders’ equity was due to the increase from income earned during the year and an increase in accumulated other comprehensive income partially offset by an increase in treasury stock from shares repurchased during 2019.

In 2018, the Company recorded $21.4 million in additional paid-in capital from the convertible notes issued. The $21.4 million included $21.9 million for the equity component of the convertible notes offset by $461 thousand in issuance costs from the convertible notes that was allocated to equity. The Company also recorded a tax adjustment on the equity component of the convertible notes reducing additional paid-in capital by $6.4 million.

In 2018, the Company repurchased 9,002,453 shares of its common stock totaling $150.0 million as part of the repurchase programs that were authorized by the Company’s Board of Directors in 2018. In June 2019, the Company’s Board of Directors approved another share repurchase program that authorizes the Company to repurchase up to $50.0 million of its common stock. During the year ended December 31, 2019, the Company repurchased 943,094 shares of common stock totaling $13.8 million. The repurchased shares were recorded as treasury stock and reduced the total number of common shares outstanding.

Dividends

The Company’s Board of Directors approved and the Company paid quarterly dividends of $0.14 per common share in each quarter of 2019. The Company paid aggregate dividends of $70.9 million to common stockholders in 2019. The Company’s Board of Directors paid quarterly dividends of $0.13 per common share for the first and second quarter of 2018 and $0.14 per common share for the third and fourth quarters of 2018. The Company paid aggregate dividends of $71.6 million to common stockholders during 2018.

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes to accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018, and 2017:

	December 31, 2019			December 31, 2018			December 31, 2017
	(Dollars in thousands)
Balance at beginning of period	$	(32,705	)	$	(21,781	)	$	(14,657	)
Unrealized gains (losses) on securities available for sale	59,851			(16,201		)	(5,796		)
Reclassification adjustments for net gains realized in income	(282		)	—			(301		)
Tax effect	(17,715		)	4,996			2,570
Total other comprehensive income (loss)	41,854			(11,205		)	(3,527		)
Reclassification to retained earnings due to the tax reform	—			—			(3,597		)
Reclassification to retained earnings per ASU 2016-01	—			281			—
Balance at end of period	$	9,149		$	(32,705	)	$	(21,781	)

For the twelve months ended December 31, 2019, $282 thousand was reclassified out of accumulated other comprehensive income to reflect the gain on sale and calls of securities. For the twelve months ended December 31, 2018 and 2017, $0 and $301 thousand, respectively, was reclassified out of accumulated other comprehensive loss to reflect the gain on sale and calls of securities.

During the first quarter of 2018, the Company adopted ASU 2016-01 “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” As a result of the adoption of ASU 2016-01, the Company no longer accounts for mutual funds as securities available for sale and accounts for these investments as equity investments with changes to fair value recorded through earnings. In accordance with ASU 2016-01, the Company reclassified $281 thousand in net unrealized losses included in other comprehensive income, net of taxes to retained earnings on January 1, 2018. As permitted by ASU 2018-02, the Company made the election to reclassify $3.6 million in disproportionate tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates as a result of the Tax Act to retained earnings for the year ended December 31, 2017. The Tax Act, which was enacted on December 22, 2017 and was effective starting January 1, 2018, permanently reduced the corporate tax rate from 35% to 21%. The disproportionate tax effect was a result of the re-evaluation of the Company’s deferred tax assets related to unrealized losses on investment securities available for sale at the lower tax rate.