Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity [Abstract]

Stockholders' Equity

7.Stockholders’ Equity

The presentation of the components of stockholders’ equity was modified from prior filings to consolidate treasury stock into surplus in the Consolidated Balance Sheets and Statements of Changes in Stockholders’ Equity in order to simplify the presentation.  Additional information on treasury stock is reflected in the common shares outstanding section below.

Common Shares Outstanding

Common shares outstanding excludes treasury shares of 1.0  million and 1.3 million at September 30, 2017 and December 31, 2016, respectively, with a first-in-first-out cost basis of $17.6 million and $24.1  million at September 30, 2017 and December 31, 2016, respectively.  Shares outstanding also excludes unvested restricted share awards of 1.7  million and 2.0 million at September 30, 2017 and December 31, 2016, respectively.

Accumulated Other Comprehensive Income (Loss)

The components of AOCI and changes in those components are presented in the following table.

	Available		HTM Securities
	for Sale		Transferred		Employee		Cash
(in thousands)	Securities		from AFS		Benefit Plans		Flow Hedges		Total
Balance, December 31, 2015	$	4,268	$	(16,795)	$	(67,890)	$	(178)	$	(80,595)
Other comprehensive income (loss) before income taxes:
Net change in unrealized gain		38,835		—		—		1,162		39,997
Reclassification of net (gain) loss realized and included in earnings		(1,435)		—		4,395		—		2,960
Valuation adjustment for employee benefit plans		—		—		(6,347)		—		(6,347)
Amortization of unrealized net loss on securities transferred to HTM		—		2,736		—		—		2,736
Income tax expense (benefit)		13,701		1,029		(714)		424		14,440
Balance, September 30, 2016	$	27,967	$	(15,088)	$	(69,128)	$	560	$	(55,689)
Balance, December 31, 2016	$	(28,679)	$	(14,392)	$	(72,501)	$	(4,960)	$	(120,532)
Other comprehensive income (loss) before income taxes:
Net change in unrealized gain (loss)		21,026		—		—		(1,232)		19,794
Reclassification of net losses realized and included in earnings		—		—		4,144		335		4,479
Valuation adjustment for pension plan amendment (a)		—		—		17,315		—		17,315
Other valuation adjustments for employee benefit plan		—		—		(9,185)		—		(9,185)
Amortization of unrealized net loss on securities transferred to HTM		—		2,726		—		—		2,726
Income tax expense (benefit)		7,649		1,012		4,416		(329)		12,748
Balance, September 30, 2017	$	(15,302)	$	(12,678)	$	(64,643)	$	(5,528)	$	(98,151)

(a) For further discussion of the pension plan amendment, see Note 11 – Retirement Plans.

AOCI is reported as a component of stockholders’ equity.  AOCI can include, among other items, unrealized holding gains and losses on securities available for sale (“AFS”), gains and losses associated with pension or other post-retirement benefits that are not recognized immediately as a component of net periodic benefit cost, and gains and losses on derivative instruments that are designated as, and qualify as, cash flow hedges.  Net unrealized gains/losses on AFS securities reclassified as securities held to maturity (“HTM”) also continue to be reported as a component of AOCI and will be amortized over the estimated remaining life of the securities as an adjustment to interest income.  Subject to certain thresholds, unrealized losses on employee benefit plans will be reclassified into income as pension and post-retirement costs are recognized over the remaining service period of plan participants.  Accumulated gains/losses on the cash flow hedge of the variable rate loans described in Note 6 will be reclassified into income over the life of the hedge.  Gains (losses) in AOCI are net of deferred income taxes. 

The following table shows the line items of the consolidated statements of income affected by amounts reclassified from AOCI.

	Nine Months Ended
Amount reclassified from AOCI (a)	September 30,				Affected line item on
(in thousands)		2017		2016	the statement of income
Gain on sale of AFS securities	$	—	$	1,435	Securities transactions
Tax effect		—		(502)	Income taxes
Net of tax		—		933	Net income
Amortization of unrealized net loss on securities transferred to HTM		(2,726)		(2,736)	Interest income
Tax effect		1,012		1,029	Income taxes
Net of tax		(1,714)		(1,707)	Net income
Amortization of defined benefit pension and post-retirement items		(4,144)		(4,395)	Employee benefits expense (b)
Tax effect		1,491		1,538	Income taxes
Net of tax		(2,653)		(2,857)	Net income
Amortization of loss on terminated cash flow hedges		(335)		—	Interest income
Tax effect		123		—	Income taxes
Net of tax		(212)		—	Net income
Total reclassifications, net of tax	$	(4,579)	$	(3,631)	Net income

(a) Amounts in parenthesis indicate reduction in net income.

(b) These AOCI components are included in the computation of net periodic pension and post-retirement cost that is reported with employee benefits expense (see Note 11 – Retirement Plans for additional details).