Comprehensive Income

9 Months Ended

Sep. 30, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income

Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months2015 and 2014 are as follows:

Third Quarter 2015
($ in thousands)	Gross			Tax		Net
Net income	$	65,839		18,843		46,996
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	8,371			2,929		5,442
Amounts reclassified into net income:
HTM securities	(97		)	(34	)	(63	)
Realized gains on AFS securities	(305		)	(106	)	(199	)
Net unrealized gains	7,969			2,789		5,180
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,709			599		1,110
Defined benefit pension and post-retirement plans	1,709			599		1,110
Other comprehensive income	9,678			3,388		6,290
Comprehensive income	$	75,517		22,231		53,286

Third Quarter 2014
($ in thousands)	Gross			Tax		Net
Net income	$	75,326		22,164		53,162
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(13,831		)	(4,843	)	(8,988	)
Amounts reclassified into net income:
HTM securities	(373		)	(130	)	(243	)
Non-credit OTTI	1,200			420		780
Realized gains on AFS securities	(16,435		)	(5,752	)	(10,683	)
Net unrealized losses	(29,439		)	(10,305	)	(19,134	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	381			134		247
Defined benefit pension and post-retirement plans	381			134		247
Other comprehensive loss	(29,058		)	(10,171	)	(18,887	)
Comprehensive income	$	46,268		11,993		34,275

Nine Months 2015
($ in thousands)	Gross			Tax		Net
Net income	$	168,894		48,422		120,472
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(27,896		)	(9,764	)	(18,132	)
Amounts reclassified into net income:
HTM securities	(543		)	(190	)	(353	)
Non-credit OTTI	357			125		232
Realized gains on AFS securities	(16,778		)	(5,872	)	(10,906	)
Net unrealized losses	(44,860		)	(15,701	)	(29,159	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	5,127			1,795		3,332
Defined benefit pension and post-retirement plans	5,127			1,795		3,332
Other comprehensive loss	(39,733		)	(13,906	)	(25,827	)
Comprehensive income	$	129,161		34,516		94,645

Nine Months 2014
($ in thousands)	Gross			Tax		Net
Net income	$	139,931		39,454		100,477
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	64,255			22,488		41,767
Amounts reclassified into net income:
HTM securities	(1,050		)	(367	)	(683	)
Non-credit OTTI	1,669			584		1,085
Realized gains on AFS securities	(28,672		)	(10,035	)	(18,637	)
Net unrealized gains	36,202			12,670		23,532
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,142			400		742
Defined benefit pension and post-retirement plans	1,142			400		742
Other comprehensive income	37,344			13,070		24,274
Comprehensive income	$	177,275		52,524		124,751

The balances of, and changes in, each component of AOCI (net of taxes) as of September 30, 2015 are as follows:

September 30, 2015
	Net Unrealized (Loss) Gain on Investment Securities									Defined Benefit Pension and Post-Retirement Plans		Total AOCI
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal
Balance, December 31, 2014	$	(514	)	623		80,284		80,393		(60,605	)	19,788
OCI before reclassifications	—			—		(18,132	)	(18,132	)	—		(18,132	)
Amounts reclassified from AOCI	232			(353	)	(10,906	)	(11,027	)	3,332		(7,695	)
Net current period OCI	232			(353	)	(29,038	)	(29,159	)	3,332		(25,827	)
Balance, September 30, 2015	$	(282	)	270		51,246		51,234		(57,273	)	(6,039	)

The reclassifications out of AOCI are as follows:

	Quarter ended September 30,					Nine Months ended September 30,
($ in thousands)	2015			2014		2015		2014		Affected Line Item in the Unaudited Consolidated Statement of Income
OTTI related
Non-credit OTTI on disposed securities	$	—		1,200		357		1,669		Net realized gains
	—			1,200		357		1,669		Income before federal income tax
	—			(420	)	(125	)	(584	)	Total federal income tax expense
	—			780		232		1,085		Net income
HTM related
Unrealized losses on HTM disposals	121			12		258		87		Net realized gains
Amortization of net unrealized gains on HTM securities	(218		)	(385	)	(801	)	(1,137	)	Net investment income earned
	(97		)	(373	)	(543	)	(1,050	)	Income before federal income tax
	34			130		190		367		Total federal income tax expense
	(63		)	(243	)	(353	)	(683	)	Net income
Realized gains on AFS and OTTI
Realized gains on AFS disposals and OTTI	(305		)	(16,435	)	(16,778	)	(28,672	)	Net realized gains
	(305		)	(16,435	)	(16,778	)	(28,672	)	Income before federal income tax
	106			5,752		5,872		10,035		Total federal income tax expense
	(199		)	(10,683	)	(10,906	)	(18,637	)	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	371			88		1,114		263		Loss and loss expense incurred
	1,338			293		4,013		879		Policy acquisition costs
Total defined benefit pension and post-retirement life	1,709			381		5,127		1,142		Income before federal income tax
	(599		)	(134	)	(1,795	)	(400	)	Total federal income tax expense
	1,110			247		3,332		742		Net income
Total reclassifications for the period	$	848		(9,899	)	(7,695	)	(17,493	)	Net income