Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Shareholders' Equity

Shareholders' Equity

Note 9. Shareholders’ Equity

On November 13, 2012, the Corporation issued 7 million depositary shares, each representing a 1/40th interest in a share of 5.50 percent Series C non-cumulative perpetual preferred stock with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). Net proceeds, after issuance cost, were approximately $169.9 million. Dividends on the preferred stock are payable quarterly, in arrears, if declared by the Corporation’s Board of Directors. The preferred stock has no maturity date and may be redeemed in whole or in part at the option of the Corporation on any dividend payment date after five years from the date of issuance.

The components of AOCI at September 30, 2013 and December 31, 2012 are as follows:

	September 30,			December 31,
(in thousands)	2013			2012
Net unrealized (loss) gain on securities available-for-sale	$	(10,355	)	$	86,526
Net unrealized gain on cash flow hedges	—			56
Total accumulated other comprehensive (loss) income	$	(10,355	)	$	86,582

The following table presents the tax effects allocated to each component of other comprehensive (loss) income for the three and nine month periods ended September 30, 2013 and 2012:

	For the three months ended September 30, 2013									For the three months ended September 30, 2012
(in thousands)	Pre-tax			Tax expense (benefit)			Net-of-tax			Pre-tax			Tax expense (benefit)			Net-of-tax
Securities available-for-sale:
Net unrealized (losses) gains arising during the period	$	(23,334	)	$	(9,761	)	$	(13,573	)	$	20,701		$	8,659		$	12,042
Reclassification adjustment for net gains included in net income (1)	(5,788		)	(2,421		)	(3,367		)	(48		)	(20		)	(28		)
Non-credit related impairment loss	—			—			—			(1,471		)	(615		)	(856		)
Total securities available-for-sale	(29,122		)	(12,182		)	(16,940		)	19,182			8,024			11,158
Net change on cash flow hedges	—			—			—			(42		)	—			(42		)
Total other comprehensive (loss) income	$	(29,122	)	$	(12,182	)	$	(16,940	)	$	19,140		$	8,024		$	11,116

(1) Recognized in Gain on sale of securities in the consolidated statements of income.

	For the nine months ended September 30, 2013									For the nine months ended September 30, 2012
(in thousands)	Pre-tax			Tax expense (benefit)			Net-of-tax			Pre-tax			Tax expense (benefit)			Net-of-tax
Securities available-for-sale:
Net unrealized (losses) gains arising during the period	$	(155,089	)	$	(64,874	)	$	(90,215	)	$	37,330		$	15,615		$	21,715
Reclassification adjustment for net gains included in net income (1)	(11,460		)	(4,794		)	(6,666		)	(459		)	(192		)	(267		)
Non-credit related impairment loss	—			—			—			(1,471		)	(615		)	(856		)
Total securities available-for-sale	(166,549		)	(69,668		)	(96,881		)	35,400			14,808			20,592
Net change on cash flow hedges	(56		)	—			(56		)	(125		)	—			(125		)
Pension liability adjustment (2)	—			—			—			1,085			—			1,085
Total other comprehensive (loss) income	$	(166,605	)	$	(69,668	)	$	(96,937	)	$	36,360		$	14,808		$	21,552

(1) Recognized in Gain on sale of securities in the consolidated statements of income.

(2) Recognized in Salaries and employee benefits in the consolidated statements of income. See Note 15 for additional information.

The following table summarizes the Company’s share repurchases for the three months ended September 30, 2013. All repurchases relate to shares withheld or previously owned shares used to pay taxes due upon vesting of restricted stock. There were no issuer repurchases of the Corporation’s common stock as part of its repurchase plan for the three months ended September 30, 2013.

Period	Total Number of Shares (or Units) Purchased	Average Price Paid per Share (or Unit)
July 1, 2013 to July 31, 2013	1,912	$	68.13
August 1, 2013 to August 31, 2013	12	65.47
September 1, 2013 to September 30, 2013	3,022	65.70
Total share repurchases	4,946	66.64