7. Stockholders’ Equity

Common Shares Outstanding

Common shares outstanding excludes treasury shares totaling 1.1 million and 1.2 million at March 31, 2018 and December 31, 2017, respectively, with a first-in-first-out cost basis of $24.4 million and $25.5 million at March 31, 2018 and December 31, 2017, respectively. Shares outstanding also excludes unvested restricted share awards totaling 1.5 million at March 31, 2018 and December 31, 2017.

Accumulated Other Comprehensive Income (Loss)

The components of Accumulated Other Comprehensive Loss 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, 2016	$	(28,679)	$	(14,392)	$	(72,501)	$	(4,960)	$	(120,532)
Other comprehensive income (loss) before income taxes:
Net change in unrealized gain		2,319		—		—		(1,135)		1,184
Reclassification of net (gain) loss realized and included in earnings		—		—		1,387		—		1,387
Amortization of unrealized net loss on securities transferred to HTM		—		650		—		—		650
Income tax expense (benefit)		843		266		504		(412)		1,201
Balance, March 31, 2017	$	(27,203)	$	(14,008)	$	(71,618)	$	(5,683)	$	(118,512)
Balance, December 31, 2017	$	(29,512)	$	(14,585)	$	(79,078)	$	(11,227)	$	(134,402)
Other comprehensive income (loss) before income taxes:
Net change in unrealized gain (loss)		(55,114)		—		—		(7,130)		(62,244)
Reclassification of net losses realized and included in earnings		—		—		1,177		619		1,796
Other valuation adjustments for employee benefit plan		—		—		—				—
Amortization of unrealized net loss on securities transferred to HTM		—		755		—		—		755
Income tax expense (benefit)		(12,508)		171		267		(1,476)		(13,546)
Balance, March 31, 2018	$	(72,118)	$	(14,001)	$	(78,168)	$	(16,262)	$	(180,549)

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. Accumulated other comprehensive loss resulting from the terminated interest rate swaps will be amortized over the remaining maturities of the designated instruments. 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.



	Three Months Ended
Amount reclassified from AOCI (a)	March 31,				Affected line item on
(in thousands)		2018		2017	the statement of income
Amortization of unrealized net loss on securities transferred to HTM		(755)		(650)	Interest income
Tax effect		171		266	Income taxes
Net of tax		(584)		(384)	Net income
Amortization of defined benefit pension and post-retirement items		(1,177)		(1,387)	Other noninterest expense (b)
Tax effect		267		504	Income taxes
Net of tax		(910)		(883)	Net income
Reclassification of unrealized gain on cash flow hedges		336		—	Interest income
Tax effect		(76)		—	Income taxes
Net of tax		260			Net income
Amortization of loss on terminated cash flow hedges		(954)		—	Interest income
Tax effect		216		—	Income taxes
Net of tax		(738)		—	Net income
Total reclassifications, net of tax	$	(1,972)	$	(1,267)	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 12 – Retirement Plans for additional details).