Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders Equity Note [Abstract]

Stockholders' Equity

6. Stockholders’ Equity

Common Shares Outstanding

Common shares outstanding excludes treasury shares totaling 5.4 million at March 31, 2022 and 5.1 million at December 31, 2021, with a first-in-first-out cost basis of $193.8 million and $175.8 million at March 31, 2022 and December 31, 2021, respectively. Shares outstanding also excludes unvested restricted share awards totaling 1.1 million at March 31, 2022 and December 31, 2021.

Stock Buyback Program

On April 22, 2021, the Company’s board of directors approved a stock buyback program whereby the Company is authorized to repurchase up to 4.3 million shares of its common stock through the program’s expiration date of December 31, 2022. The program allows the Company to repurchase its common shares in the open market, by block purchase, through accelerated share repurchase programs, in privately negotiated transactions, or otherwise, in one or more transactions. The Company is not obligated to purchase any shares under this program, and the board of directors has the ability to terminate or amend the program at any time prior to the expiration date. During the first quarter of 2022, the Company repurchased 350,000 shares of its common stock at an average cost of $52.82 per share, inclusive of commissions. To date, the Company has repurchased 799,876 shares at an average cost of $50.36 under this program.

Accumulated Other Comprehensive Income (Loss)

A roll forward of the components of AOCI is included as follows:

	Available for Sale Securities			HTM Securities Transferred from AFS			Employee Benefit Plans			Cash Flow Hedges			Equity Method Investment			Total
(in thousands)
Balance, December 31, 2020	$	171,224		$	276		$	(125,573	)	$	39,511		$	(5,369	)	$	80,069
Net change in unrealized gain or loss		(141,800	)	—			—				(4,152	)		462			(145,490	)
Reclassification of net income or loss realized and included in earnings	—			—				1,954			(6,136	)		4,468			286
Amortization of unrealized net gain on securities transferred to HTM	—				(56	)	—			—				—			(56	)
Income tax expense (benefit)		(31,862	)		(13	)		439			(2,312	)		—			(33,748	)
Balance, March 31, 2021	$	61,286		$	233		$	(124,058	)	$	31,535		$	(439	)	$	(31,443	)
Balance, December 31, 2021	$	11,037		$	153		$	(80,946	)	$	16,284		$	(463	)	$	(53,935	)
Net change in unrealized gain or loss		(358,190	)		—			—			(33,182	)		468			(390,904	)
Reclassification of net income or loss realized and included in earnings		1,707			—			1,209			(6,754	)		—			(3,838	)
Transfer of net unrealized loss from AFS to HTM securities portfolio		15,405			(15,405	)		—			—			—			—
Amortization of unrealized net gain or loss on securities transferred to HTM		—			261			—			—			—			261
Income tax expense (benefit)		(76,981	)		(3,418	)		273			(9,014	)		—			(89,140	)
Balance, March 31, 2022	$	(253,060	)	$	(11,573	)	$	(80,010	)	$	(14,638	)	$	5		$	(359,276	)

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”), including the Company’s share of unrealized gains and losses reported by a partnership accounted for under the equity method, 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 cash flow hedges of variable rate loans described in Note 5 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, where applicable.

The following table shows the line items in 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)	2022			2021			the statement of income
Loss on sale of AFS securities	$	(1,707	)	$	—		Noninterest income
Tax effect		385			—		Income taxes
Net of tax		(1,322	)		—		Net income
Amortization of unrealized net gain (loss) on securities transferred to HTM		(261	)		56		Interest income
Tax effect		59			(13	)	Income taxes
Net of tax		(202	)		43		Net income
Amortization of defined benefit pension and post-retirement items		(1,209	)		(1,954	)	Other noninterest expense (b)
Tax effect		273			439		Income taxes
Net of tax		(936	)		(1,515	)	Net income
Reclassification of unrealized gain on cash flow hedges		3,875			6,136		Interest income
Tax effect		(875	)		(1,379	)	Income taxes
Net of tax		3,000			4,757		Net income
Amortization of gain (loss) on terminated cash flow hedges		2,879			—		Interest income
Tax effect		(650	)		—		Income taxes
Net of tax		2,229			—		Net income
Reclassification of unrealized loss on equity method investment		(468	)		(4,468	)	Noninterest income
Tax effect		—			—		Income taxes
Net of tax		(468	)		(4,468	)	Net income
Total reclassifications, net of tax	$	2,301		$	(1,183	)	Net income

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