Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Minimum Required Capital Amounts and Ratios for Well Capitalized Institutions and The Actual Capital Amounts and Ratios for The Company and The Bank

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, 2021, and December 31, 2020:

(dollars in thousands)	Well Capitalized Minimum Ratio			Company			Bank
As of December 31, 2021
Common Shareholders’ Equity				$	1,436,124		$	1,586,473
Common Equity Tier 1 Capital					1,483,455			1,645,405
Tier 1 Capital					1,658,942			1,645,405
Total Capital					1,811,943			1,798,190
Common Equity Tier 1 Capital Ratio		6.5	%		12.12	%		13.47	%
Tier 1 Capital Ratio		8.0	%		13.56	%		13.47	%
Total Capital Ratio		10.0	%		14.81	%		14.72	%
Tier 1 Leverage Ratio		5.0	%		7.32	%		7.26	%

As of December 31, 2020
Common Shareholders’ Equity				$	1,374,507		$	1,290,455
Common Equity Tier 1 Capital					1,361,915			1,289,435
Tier 1 Capital					1,361,915			1,289,435
Total Capital					1,503,784			1,431,106
Common Equity Tier 1 Capital Ratio		6.5	%		12.06	%		11.43	%
Tier 1 Capital Ratio		8.0	%		12.06	%		11.43	%
Total Capital Ratio		10.0	%		13.31	%		12.69	%
Tier 1 Leverage Ratio		5.0	%		6.71	%		6.35	%

Components of 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, 2021
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(111,084	)	$	(29,440	)	$	(81,644	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income:
(Gain) Loss on Sale		(3,798	)		(1,007	)		(2,791	)
Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities ¹		648			171			477
Net Unrealized Gains (Losses) on Investment Securities		(114,234	)		(30,276	)		(83,958	)
Defined Benefit Plans:
Net Actuarial Gains (Losses) Arising During the Period		10,842			2,874			7,968
Amortization of Net Actuarial Losses (Gains)		2,676			709			1,967
Amortization of Prior Service Credit		(246	)		(65	)		(181	)
Defined Benefit Plans, Net		13,272			3,518			9,754
Other Comprehensive Income (Loss)	$	(100,962	)	$	(26,758	)	$	(74,204	)

Year Ended December 31, 2020
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	58,763		$	15,600		$	43,163
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income:
(Gain) Loss on Sale		(77	)		(50	)		(27	)
Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities ¹		397			105			292
Net Unrealized Gains (Losses) on Investment Securities		59,083			15,655			43,428
Defined Benefit Plans:
Net Actuarial Gains (Losses) Arising During the Period		(8,187	)		(2,170	)		(6,017	)
Amortization of Net Actuarial Losses (Gains)		2,318			614			1,704
Amortization of Prior Service Credit		(246	)		(65	)		(181	)
Defined Benefit Plans, Net		(6,115	)		(1,621	)		(4,494	)
Other Comprehensive Income (Loss)	$	52,968		$	14,034		$	38,934

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

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.

Schedule of Accumulated Other Comprehensive Income (Loss)

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, 2021
Balance at Beginning of Period	$	51,495		$	(423	)	$	(43,250	)	$	7,822
Other Comprehensive Income (Loss) Before Reclassifications		(81,644	)		—			7,968			(73,676	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)		(2,791	)		477			1,786			(528	)
Total Other Comprehensive Income (Loss)		(84,435	)		477			9,754			(74,204	)
Balance at End of Period	$	(32,940	)	$	54		$	(33,496	)	$	(66,382	)

Year Ended December 31, 2020
Balance at Beginning of Period	$	8,359		$	(715	)	$	(38,756	)	$	(31,112	)
Other Comprehensive Income (Loss) Before Reclassifications		43,163			—			(6,017	)		37,146
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)		(27	)		292			1,523			1,788
Total Other Comprehensive Income (Loss)		43,136			292			(4,494	)		38,934
Balance at End of Period	$	51,495		$	(423	)	$	(43,250	)	$	7,822

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	)

Reclassification out of Accumulated Other Comprehensive Income

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,
	2021			2020			2019
Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity	$	(648	)	$	(397	)	$	(833	)	Interest Income
		171			105			221		Provision for Income Tax
		(477	)		(292	)		(612	)	Net of Tax
Sales of Investment Securities Available-for-Sale		3,798			77			152		Investment Securities Gains (Losses), Net
		(1,007	)		(50	)		(49	)	Provision for Income Tax
		2,791			27			103		Net of Tax

Amortization of Defined Benefit Plans Items
Prior Service Credit ²		246			246			288
Net Actuarial Losses ²		(2,676	)		(2,318	)		(1,598	)
		(2,430	)		(2,072	)		(1,310	)	Total Before Tax
		644			549			347		Provision for Income Tax
		(1,786	)		(1,523	)		(963	)	Net of Tax

Total Reclassifications for the Period	$	528		$	(1,788	)	$	(1,472	)	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).}