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Shareholders' Equity
 12 Months Ended
Dec. 31, 2019
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity

Regulatory Capital

The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2019, and December 31, 2018:
(dollars in thousands)
Well Capitalized
Minimum Ratio

 
Company

 
Bank

As of December 31, 2019
 
 
 
 
 
Shareholders’ Equity
 
 
$
1,286,832

 
$
1,229,775

Common Equity Tier 1 Capital
 
 
1,289,424

 
1,243,939

Tier 1 Capital
 
 
1,289,424

 
1,243,939

Total Capital
 
 
1,406,273

 
1,360,788

Common Equity Tier 1 Capital Ratio
6.5
%
 
12.18
%
 
11.76
%
Tier 1 Capital Ratio
8.0
%
 
12.18
%
 
11.76
%
Total Capital Ratio
10.0
%
 
13.28
%
 
12.87
%
Tier 1 Leverage Ratio
5.0
%
 
7.25
%
 
7.01
%
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
Shareholders’ Equity
 
 
$
1,268,200

 
$
1,195,132

Common Equity Tier 1 Capital
 
 
1,290,723

 
1,229,227

Tier 1 Capital
 
 
1,290,723

 
1,229,227

Total Capital
 
 
1,404,238

 
1,342,742

Common Equity Tier 1 Capital Ratio
6.5
%
 
13.07
%
 
12.46
%
Tier 1 Capital Ratio
8.0
%
 
13.07
%
 
12.46
%
Total Capital Ratio
10.0
%
 
14.21
%
 
13.61
%
Tier 1 Leverage Ratio
5.0
%
 
7.60
%
 
7.24
%


The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by regulators about the components of regulatory capital, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Tier 1 and Total Capital. Both Common Equity Tier 1 Capital and Tier 1 Capital are common shareholders’ equity, reduced by certain intangible assets, postretirement benefit liability adjustments, and unrealized gains and losses on investment securities. Total Capital is Tier 1 Capital plus an allowable amount of the reserve for credit losses. Risk-weighted assets are calculated by taking assets and credit equivalent amounts of off-balance-sheet items and assigning them to one of several broad risk categories. Four capital ratios are used to measure capital adequacy: Common Equity Tier 1 Capital divided by risk-weighted assets, as defined; Tier 1 Capital divided by risk-weighted assets; Total Capital divided by risk-weighted assets; and the Tier 1 Leverage ratio, which is Tier 1 Capital divided by quarterly adjusted average total assets.

In addition to the minimum risk-based capital requirements, all banks must hold additional capital, referred to as the capital conservation buffer (which is in the form of common equity) under the U.S. Basel III capital framework, to avoid being subject to limits on capital distributions and certain discretionary bonus payments to officers. The capital conservation buffer which was fully phased-in on January 1, 2019, is a minimum of 2.5% of additional capital in addition to the minimum risk-based capital ratios.

As of December 31, 2019, the Company and the Bank were well capitalized as defined in the regulatory framework for prompt corrective action. The capital conservation buffer requirements do not currently result in any limitations on distributions or discretionary bonuses for the Company or the Bank. There were no conditions or events since December 31, 2019, that management believes have changed the Company or the Bank’s capital classifications.

Dividends

Dividends paid by the Parent are substantially funded from dividends received from the Bank. The Bank is subject to federal and state regulatory restrictions that limit cash dividends and loans to the Parent. These restrictions generally require advanced approval from the Bank’s regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years.

Common Stock Repurchase Program

The Parent has a common stock repurchase program in which shares repurchased are held in treasury stock for reissuance in connection with share-based compensation plans and for general corporate purposes. For the year ended December 31, 2019, the Parent repurchased 1,642,998 shares of common stock under its share repurchase program at an average cost per share of $81.98 and total cost of $134.7 million. From the beginning of the stock repurchase program in July 2001 through December 31, 2019, the Parent repurchased a total of 56.9 million shares of common stock at an average cost of $40.38 per share and total cost nearly $2.3 billion. From January 1, 2020, through February 14, 2020, the Parent repurchased an additional 114,358 shares of common stock at an average cost of $92.63 per share for a total of $10.6 million. The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors.

Accumulated Other Comprehensive Income

The following table presents the components of other comprehensive income (loss), net of tax:
(dollars in thousands)
Before Tax

 
Tax Effect

 
Net of Tax

Year Ended December 31, 2019
 
 
 
 
 
Net Unrealized Gains (Losses) on Investment Securities:
 
 
 
 
 
Net Unrealized Gains (Losses) Arising During the Period
$
30,169

 
$
8,001

 
$
22,168

Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income:
 
 
 
 
 
  (Gain) Loss on Sale
(152
)
 
(49
)
 
(103
)
  Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1
833

 
221

 
612

Net Unrealized Gains (Losses) on Investment Securities
30,850

 
8,173

 
22,677

Defined Benefit Plans:

 

 
 
Net Actuarial Gains (Losses) Arising During the Period
(5,046
)
 
(1,337
)
 
(3,709
)
Amortization of Net Actuarial Losses (Gains)
1,598

 
423

 
1,175

Amortization of Prior Service Credit
(288
)
 
(76
)
 
(212
)
Defined Benefit Plans, Net
(3,736
)
 
(990
)
 
(2,746
)
Other Comprehensive Income (Loss)
$
27,114

 
$
7,183

 
$
19,931

 
 
 
 
 
 
Year Ended December 31, 2018
 
 
 
 
 
Net Unrealized Gains (Losses) on Investment Securities:
 
 
 
 
 
Net Unrealized Gains (Losses) Arising During the Period
$
(11,051
)
 
$
(2,931
)
 
$
(8,120
)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income:
 
 
 
 
 
  Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1
2,164

 
569

 
1,595

Net Unrealized Gains (Losses) on Investment Securities
(8,887
)
 
(2,362
)
 
(6,525
)
Defined Benefit Plans:
 
 
 
 
 
Net Actuarial Gains (Losses) Arising During the Period
(4,468
)
 
(1,184
)
 
(3,284
)
Amortization of Net Actuarial Losses (Gains)
1,835

 
460

 
1,375

Amortization of Prior Service Credit
(567
)
 
(150
)
 
(417
)
Defined Benefit Plans, Net
(3,200
)
 
(874
)
 
(2,326
)
Other Comprehensive Income (Loss)
$
(12,087
)
 
$
(3,236
)
 
$
(8,851
)
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
Net Unrealized Gains (Losses) on Investment Securities:
 
 
 
 
 
Net Unrealized Gains (Losses) Arising During the Period
$
(5,263
)
 
$
(2,078
)
 
$
(3,185
)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income:
 
 
 
 
 
  Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1
1,982

 
783

 
1,199

Net Unrealized Gains (Losses) on Investment Securities
(3,281
)
 
(1,295
)
 
(1,986
)
Defined Benefit Plans:
 
 
 
 
 
Net Actuarial Gains (Losses) Arising During the Period
884

 
349

 
535

Amortization of Net Actuarial Losses (Gains)
1,382

 
545

 
837

Amortization of Prior Service Credit
(322
)
 
(127
)
 
(195
)
Defined Benefit Plans, Net
1,944

 
767

 
1,177

Other Comprehensive Income (Loss)
$
(1,337
)
 
$
(528
)
 
$
(809
)

1
The amount relates to the amortization/accretion of unrealized gains and losses related to the Company's reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.



The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax:
(dollars in thousands)
Investment Securities-Available-For-Sale

 
Investment Securities-Held-To-Maturities

 
Defined Benefit Plans

Accumulated Other Comprehensive Income (Loss)

Year Ended December 31, 2019
 
 
 
 
 
 
Balance at Beginning of Period
$
(10,447
)
 
$
(4,586
)
 
$
(36,010
)
$
(51,043
)
Other Comprehensive Income (Loss) Before Reclassifications
22,168

 
—

 
(3,709
)
18,459

Cumulative Effect of ASU 2019-04
(3,259
)
 
3,259

 
—

—

Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(103
)
 
612

 
963

1,472

Total Other Comprehensive Income (Loss)
18,806

 
3,871

 
(2,746
)
19,931

Balance at End of Period
$
8,359

 
$
(715
)
 
$
(38,756
)
$
(31,112
)
 
 
 
 
 
 
 
Year Ended December 31, 2018
 
 
 
 
 
 
Balance at Beginning Period
$
(1,915
)
 
$
(5,085
)
 
$
(27,715
)
$
(34,715
)
Other Comprehensive Income (Loss) Before Reclassifications
(8,120
)
 
—

 
(3,284
)
(11,404
)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
—

 
1,595

 
958

2,553

Total Other Comprehensive Income (Loss)
(8,120
)
 
1,595

 
(2,326
)
(8,851
)
Reclassification of the Income Tax Effects of the
     Tax Act from AOCI
(412
)
 
(1,096
)
 
(5,969
)
(7,477
)
Balance at End of Period
$
(10,447
)
 
$
(4,586
)
 
$
(36,010
)
$
(51,043
)
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
Balance at Beginning Period
$
1,270

 
$
(6,284
)
 
$
(28,892
)
$
(33,906
)
Other Comprehensive Income (Loss) Before Reclassifications
(3,185
)
 
—

 
535

(2,650
)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
—

 
1,199

 
642

1,841

Total Other Comprehensive Income (Loss)
(3,185
)
 
1,199

 
1,177

(809
)
Balance at End of Period
$
(1,915
)
 
$
(5,085
)
 
$
(27,715
)
$
(34,715
)


The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss):
Details about Accumulated Other Comprehensive Income (Loss) Components
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1
 
Affected Line Item in the Statement Where Net Income Is Presented
(dollars in thousands)
Year Ended December 31,
 
 
2019

 
2018

 
2017

 
Amortization of Unrealized Holding Gains (Losses) on
     Investment Securities Held-to-Maturity
$
(833
)
 
$
(2,164
)
 
$
(1,982
)
Interest Income
 
221

 
569

 
783

Provision for Income Tax
 
(612
)
 
(1,595
)
 
(1,199
)
Net of Tax
Sales of Investment Securities Available-for-Sale
152

 
—

 
—

Investment Securities Gains (Losses), Net
 
(49
)
 
—

 
—

Provision for Income Tax
 
103

 
—

 
—

Net of Tax
 
 
 
 
 
 
 
Amortization of Defined Benefit Plans Items
 
 
 
 
 
 
  Prior Service Credit 2
288

 
567

 
322

 
  Net Actuarial Losses 2
(1,598
)
 
(1,835
)
 
(1,382
)
 
 
(1,310
)
 
(1,268
)
 
(1,060
)
Total Before Tax
 
347

 
310

 
418

Provision for Income Tax
 
(963
)
 
(958
)
 
(642
)
Net of Tax
 
 
 
 
 
 
 
Total Reclassifications for the Period
$
(1,472
)
 
$
(2,553
)
 
$
(1,841
)
Net of Tax
1 
Amounts in parentheses indicate reductions to net income.
2 
These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Other Noninterest Expense on the consolidated statements of income (see Note 14 Pension Plans and Postretirement Benefit Plan for additional details).