7. Stockholders’ Equity

Common Shares Outstanding

Common shares outstanding excludes treasury shares totaling 1.1 million and 1.2 million at June 30, 2018 and December 31, 2017, respectively, with a first-in-first-out cost basis of $24.1 million and $25.5 million at June 30, 2018 and December 31, 2017, respectively. Shares outstanding also excludes unvested restricted share awards totaling 1.5 million at June 30, 2018 and December 31, 2017.

Stock Buyback Program

On May 24, 2018, the Company’s board of directors approved a stock buyback program that authorized the repurchase of up to 5%, or approximately 4.3 million shares, of its outstanding common stock. The approved program allows the Company to repurchase its common shares either in the open market in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, or in privately negotiated transactions with non-affiliated sellers or as otherwise determined by the Company in one or more transactions, from time to time until December 31, 2019. The Company is not obligated to purchase any shares under this program, and the board of directors may terminate or amend the program at any time prior to the expiration date. As of June 30, 2018, no shares of the Company’s common stock had been purchased under this program.

Accumulated Other Comprehensive 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 (loss)		14,687		—		—		(842)		13,845
Reclassification of net loss realized and included in earnings		—		—		3,105		—		3,105
Valuation adjustment for pension plan amendment		—		—		17,315		—		17,315
Other valuation adjustments for employee benefit plan		—		—		(10,782)		—		(10,782)
Amortization of unrealized net loss on securities transferred to HTM		—		1,749		—		—		1,749
Income tax expense (benefit)		5,333		657		3,458		(309)		9,139
Balance, June 30, 2017	$	(19,325)	$	(13,300)	$	(66,321)	$	(5,493)	$	(104,439)
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 losses		(71,759)		—		—		(13,894)		(85,653)
Reclassification of net losses realized and included in earnings		—		—		2,448		1,565		4,013
Other valuation adjustments for employee benefit plan		—		—		(9,039)		—		(9,039)
Amortization of unrealized net loss on securities transferred to HTM		—		1,680		—		—		1,680
Income tax expense (benefit)		(16,284)		380		(1,494)		(2,794)		(20,192)
Balance, June 30, 2018	$	(84,987)	$	(13,285)	$	(84,175)	$	(20,762)	$	(203,209)

Accumulated Other Comprehensive Income or Loss (“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 and 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 or 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 and losses within 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.



	Six Months Ended
Amount reclassified from AOCI (a)	June 30,				Affected line item on
(in thousands)		2018		2017	the statement of income
Amortization of unrealized net loss on securities transferred to HTM	$	(1,680)	$	(1,749)	Interest income
Tax effect		380		657	Income taxes
Net of tax		(1,300)		(1,092)	Net income
Amortization of defined benefit pension and post-retirement items		(2,448)		(3,105)	Other noninterest expense (b)
Tax effect		555		1,114	Income taxes
Net of tax		(1,893)		(1,991)	Net income
Reclassification of unrealized gain on cash flow hedges		979		—	Interest income
Tax effect		(222)		—	Income taxes
Net of tax		757		—	Net income
Amortization of loss on terminated cash flow hedges		(2,544)		—	Interest income
Tax effect		577		—	Income taxes
Net of tax		(1,967)		—	Net income
Total reclassifications, net of tax	$	(4,403)	$	(3,083)	Net income

(a)

Amounts in parentheses 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).