Comprehensive Income

6 Months Ended

Jun. 30, 2011

NOTE 5 – COMPREHENSIVE INCOME

Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale and unrealized gains and losses on cash flow hedges and changes in funded status of pension plans which are also recognized as separate components of equity. Following is a summary of other comprehensive income for the three and six months ended June 30, 2011 and 2010:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(dollars in thousands)		2011			2010			2011			2010
Net income	$	17,016		$	10,523		$	33,449		$	20,592
Other comprehensive income
Change in securities available for sale:
Unrealized holding gains arising during the period		22,769			25,962			31,292			42,070
Reclassification for securities transferred to held-to-maturity		0			(9,371	)		0			(9,371	)
Reclassification adjustment for securities gains realized in income		(666	)		(6,008	)		(2,165	)		(9,511	)
Other-than-temporary-impairment on available-for-sale debt securities
recorded in other comprehensive income		(1,233	)		0			(1,233	)		(1,133	)
Other-than-temporary-impairment on available-for-sale debt securities
associated with credit loss realized in income		200			2,764			499			3,269
Income tax effect		(8,371	)		(5,379	)		(11,053	)		(10,320	)
Change in securities held-to-maturity:
Fair value adjustment for securities transferred from available-for-sale		0			9,371			0			9,371
Amortization of fair value previously recognized into accumulated
other comprehensive income		(474	)		(260	)		(967	)		(444	)
Income tax effect		190			(3,641	)		387			(3,567	)
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges		(291	)		357			(609	)		989
Reclassification adjustment on cash flow hedges		72			72			144			144
Income tax effect		88			(171	)		187			(452	)
Defined benefit pension plans:
Amortization of net loss recognized in income		1,080			401			1,983			802
Income tax effect		(432	)		(160	)		(794	)		(321	)
Total other comprehensive income		12,932			13,937			17,671			21,526
Comprehensive income	$	29,948		$	24,460		$	51,120		$	42,118

The following tables summarize the changes within each classification of accumulated other comprehensive income ("AOCI") for the six months ended June 30, 2011 and 2010:


		AOCI at			Other			AOCI at
		December 31,			Comprehensive			June 30,
(dollars in thousands)		2010			Income			2011
Unrealized gains on
available-for-sale securities	$	31,962		$	18,093		$	50,055
Unrealized losses on securities for which other-
than-temporary-impairment has been recognized		(28,173	)		(753	)		(28,926	)
Unrealized gains (losses) on
held-to-maturity securities		5,667			(580	)		5,087
Unrecognized gain (loss) on cash flow hedges		846			(278	)		568
Defined benefit pension plans		(11,571	)		1,189			(10,382	)
Accumulated other comprehensive income (loss)	$	(1,269	)	$	17,671		$	16,402


		AOCI at			Other			AOCI at
		December 31,			Comprehensive			June 30,
(dollars in thousands)		2009			Income			2010
Unrealized gains on
available-for-sale securities	$	19,789		$	15,676		$	35,465
Unrealized losses on securities for which other-
than-temporary-impairment has been recognized		(27,501	)		(672	)		(28,173	)
Unrealized gains (losses) on
held-to-maturity securities		812			5,360			6,172
Unrecognized gain on cash flow hedges		187			681			868
Defined benefit pension plans		(13,653	)		481			(13,172	)
Accumulated other comprehensive income (loss)	$	(20,366	)	$	21,526		$	1,160

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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