STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2020

STOCKHOLDERS’ EQUITY

Preferred Stock

We are authorized to issue 50,000,000 shares of preferred stock with par value of $0.01 per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference but generally have no voting rights. All of our

outstanding shares of preferred stock have a $1,000 per share liquidation preference. The following table presents our total outstanding preferred stock as of the dates indicated:


	September 30, 2020					December 31, 2019
($ in thousands)	Shares Outstanding	Liquidation Preference		Carrying Value		Shares Outstanding	Liquidation Preference		Carrying Value



Series D 7.375% non-cumulative perpetual	93,270	$	93,270	$	89,922	96,629	$	96,629	$	93,162
Series E 7.00% non-cumulative perpetual	98,702	98,702		94,956		100,477	100,477		96,663
Total	191,972	$	191,972	$	184,878	197,106	$	197,106	$	189,825

Series D Preferred Stock

During the three and nine months ended September 30, 2020, we repurchased depositary shares (Series D Depositary Shares), each representing a 1/40th interest in a share of Series D Preferred Stock, liquidation amount of $1,000 per share of Series D Preferred Stock, resulting in the repurchase of 100 and 134,410 outstanding Series D Depositary Shares and the related retirement of 3 and 3,360 outstanding shares of Series D Preferred Stock. During the three and nine months ended September 30, 2020 we paid $2 thousand and $2.7 million to repurchase Series D Preferred Stock, resulting in a $0 and $541 thousand difference between the consideration paid and the repurchased shares' carrying value. When the consideration paid to repurchase shares exceeds the repurchased shares' carrying value, the difference reduces net income allocated to common shareholders. When the consideration paid to repurchase shares is less than the repurchased shares' carrying value, the difference increases net income allocated to common shareholders.

On August 23, 2019, the Company completed a tender offer for Series D Depositary Shares, resulting in the repurchase of 734,823 outstanding Series D Depository Shares and the related retirement of 18,371 outstanding shares of Series D Preferred Stock. During the nine-month period ended September 30, 2019 we paid $19.4 million to repurchase Series D Preferred Stock, resulting in a $1.7 million difference between the consideration paid and the repurchased shares' carrying value.

Series E Preferred Stock

During the three and nine months ended September 30, 2020, we repurchased depositary shares (Series E Depositary Shares), each representing a 1/40th interest in a share of Series E Preferred Stock, liquidation amount of $1,000 per share of Series E Preferred Stock, resulting in the repurchase of 6,502 and 70,967 outstanding Series E Depositary Shares and the related retirement of 163 and 1,774 outstanding shares of Series E Preferred Stock. During the three and nine months ended September 30, 2020, we paid $163 thousand and $1.7 million to repurchase Series E Preferred Stock, resulting in a $6 thousand and $27 thousand difference between the consideration paid and the repurchased shares' carrying value.

On August 23, 2019, the Company completed a tender offer for Series E Depositary Shares, resulting in the repurchase of 980,928 outstanding Series E Depository Shares and the related retirement of 24,523 outstanding shares of Series E Preferred Stock. During the nine months ended September 30, 2019. we paid $26.6 million to repurchase Series E Preferred Stock, resulting in a $3.4 million difference between the consideration paid and the repurchased shares' carrying value.

Share Repurchase Program

On February 10, 2020, we announced that our Board of Directors (the “Board”) authorized the repurchase of up to $45 million of our common stock. The repurchase authorization expires in February 2021, however given current macroeconomic conditions and the COVID-19 pandemic, we have suspended common stock repurchases for the immediate future. There were no repurchases of common stock for the three months ended September 30, 2020. During the nine months ended September 30, 2020, we repurchased 827,584 shares of common stock at a weighted average price of $14.50 per share and an aggregate amount of $12.0 million. Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions, or by other means as determined by our management and in accordance with the regulations of the Securities and Exchange Commission. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions.

Change in Accumulated Other Comprehensive (Loss) Income ("AOCI")

Our AOCI includes unrealized gain (loss) on securities available-for-sale. Changes to AOCI are presented net of the tax effect as a component of stockholders' equity. Reclassifications from AOCI occur when a security is sold, called or matures and are recorded on the consolidated statements of operations either as a gain or loss. The following table presents changes to AOCI for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2020		2019		2020		2019
Unrealized (loss) gain on securities available-for-sale
Balance at beginning of period	$	(15,565)	$	(12,668)	$	(11,900)	$	(24,117)
Unrealized gain (loss) arising during the period	23,859		(1,408)		20,677		15,014
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale	—		—		—		—
Impairment loss on investment securities	—		731		—		731
Reclassification adjustment from other comprehensive income	—		5,063		(2,011)		4,855
Tax effect of current period changes	(7,028)		(1,289)		(5,500)		(6,054)
Total changes, net of taxes	16,831		3,097		13,166		14,546

Balance at end of period	$	1,266	$	(9,571)	$	1,266	$	(9,571)