Stockholders' Equity

3 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders’ Equity

STOCKHOLDERS’ EQUITY

Total stockholders’ equity at December 31, 2022 was $2.02 billion, compared to $2.09 billion at December 31, 2021. The decrease in stockholders’ equity was due primarily to a decrease in accumulated other comprehensive income, a decrease from cash dividends paid, and an increase in treasury stock from shares repurchased during 2022, offset partially by the increase in retained earnings from income earned during the year.

In July 2021, the Company’s Board of Directors approved a share repurchase program that authorizes the Company to repurchase $50.0 million of its common stock. In 2021, the Company completed the repurchase plan through the repurchase of 3,682,268 shares of common stock totaling $50.0 million. In January 2022, the Company’s Board of Directors approved another share repurchase program that authorizes the Company to repurchase up to an additional $50.0 million of its common stock. During the year ended December 31, 2022, the Company repurchased 1,038,986 shares of common stock totaling $14.7 million as part of this program. Repurchased shares were recorded as treasury stock and reduced the total number of common stock 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 2022 and 2021. The Company paid aggregate dividends of $67.1 million and $68.7 million to common stockholders in 2022 and 2021, respectively.

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes to accumulated other comprehensive income for the years ended December 31, 2022, 2021, and 2020:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Balance at beginning of period	$	(11,412)	$	32,753	$	9,149
Unrealized net (losses) gains on securities available for sale	(297,919)		(65,551)		41,562
Unrealized net losses on securities available for sale transferred to held to maturity	(36,576)		—		—
Unrealized net gains (losses) on interest rate swaps used for cash flow hedge	23,062		2,893		(602)
Reclassification adjustments for net losses (gains) realized in net income	253		319		(7,583)
Tax effect	91,735		18,174		(9,773)
Other comprehensive (loss) income, net of tax	(219,445)		(44,165)		23,604
Balance at end of period	$	(230,857)	$	(11,412)	$	32,753

Reclassifications for net gains and losses realized in net income for the years ended December 31, 2022, 2021, and 2020 relate to net gains on interest rate swaps used for cash flow hedges and amortization on unrealized loss from transferred investment securities to HTM. Gains and losses on interest rate swaps are recorded in noninterest income under other income and fees in the Consolidated Statements of Income. The unrealized holding loss at the date of transfer on securities held to maturity will continue to be reported, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of stockholders’ equity, and amortized over the remaining life of the securities as an adjustment of yield, offsetting the impact on yield of the corresponding discount amortization.

For the year ended December 31, 2022, the Company reclassified $2.0 million from other comprehensive income to gains from cash flow hedge relationships. For the year ended December 31, 2021, the Company reclassified $319 thousand from other comprehensive income to losses from cash flow hedge relationships. For the year ended December 31, 2020, the Company reclassified $7.6 million from other comprehensive income to reflect the gain on sale and calls of securities, and related to the interest swap designated as a cash flow hedge.

For the year ended December 31, 2022, the Company recorded reclassification adjustments as a reduction to interest income of $2.3 million from other comprehensive losses to amortize transferred unrealized losses to investment securities HTM, compared to zero for the same periods in 2021 and 2020.