Stockholders' Equity

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

6. Stockholders’ Equity

Common Shares Outstanding

Common shares outstanding excludes treasury shares totaling 6.2 million and 6.3 million, with a first-in-first-out cost basis of $235.4 million and $238.6 million, at June 30, 2023 and December 31, 2022, respectively. Shares outstanding also excludes unvested restricted share awards totaling 0.6 million and 0.7 million at June 30, 2023 and December 31, 2022.

Stock Buyback Program

On January 26, 2023, 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, 2024. 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. To date, the Company has not repurchased shares under this program.

Prior to its expiration on December 31, 2022, the Company had in place a stock repurchase program authorized by the board of directors on April 22, 2021, whereby the Company was authorized to repurchase up to 4.3 million shares of its common stock. The program allowed 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. During the first half of 2022, the Company repurchased 1,154,368 shares of its common stock at an average cost of $48.93 per share, inclusive of commissions. In total, the Company repurchased 1.7 million shares at an average cost of $48.77 per share under this plan.

Accumulated Other Comprehensive Income (Loss)

A roll-forward of the components of Accumulated Other Comprehensive Income (Loss) is presented in the table that 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, 2021	$	11,037		$	153		$	(80,946	)	$	16,284		$	(463	)	$	(53,935	)
Net change in unrealized gain (loss)		(547,636	)		—			—			(47,287	)		468			(594,455	)
Reclassification of net income or loss realized and included in earnings		1,707			—			1,652			(12,767	)		—			(9,408	)
Valuation adjustments to employee benefit plans		—			—			(7,987	)		—			—			(7,987	)
Transfer of net unrealized loss from AFS to HTM securities portfolio		15,405			(15,405	)		—			—			—			—
Amortization of unrealized net loss on securities transferred to HTM		—			527			—			—			—			527
Income tax benefit		119,739			3,358			1,430			13,554			—			138,081
Balance, June 30, 2022	$	(399,748	)	$	(11,367	)	$	(85,851	)	$	(30,216	)	$	5		$	(527,177	)
Balance, December 31, 2022	$	(584,408	)	$	(10,734	)	$	(97,952	)	$	(79,093	)	$	5		$	(772,182	)
Net change in unrealized gain (loss)		17,678			—			—			(20,943	)		706			(2,559	)
Reclassification of net loss realized and included in earnings		—			—			3,272			17,493			—			20,765
Valuation adjustments to employee benefit plans		—			—			(7,521	)		—			—			(7,521	)
Amortization of unrealized net loss on securities transferred to HTM		—			922			—			—			—			922
Income tax (expense) benefit		(3,737	)		(207	)		956			777			—			(2,211	)
Balance, June 30, 2023	$	(570,467	)	$	(10,019	)	$	(101,245	)	$	(81,766	)	$	711		$	(762,786	)

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.

	Six Months Ended
Amount reclassified from AOCI (a)	June 30,						Affected line item on
($ in thousands)	2023			2022			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 loss on securities transferred to HTM		(922	)		(527	)	Interest income
Tax effect		207			119		Income taxes
Net of tax		(715	)		(408	)	Net income
Amortization of defined benefit pension and post-retirement items		(3,272	)		(1,652	)	Other noninterest expense (b)
Tax effect		736			373		Income taxes
Net of tax		(2,536	)		(1,279	)	Net income
Reclassification of unrealized gain/(loss) on cash flow hedges		(21,994	)		6,977		Interest income
Tax effect		4,953			(1,575	)	Income taxes
Net of tax		(17,041	)		5,402		Net income
Amortization of gain on terminated cash flow hedges		4,501			5,790		Interest income
Tax effect		(1,014	)		(1,307	)	Income taxes
Net of tax		3,487			4,483		Net income
Total reclassifications, net of tax		(16,805	)		6,876		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 other noninterest
expense (see Note 10 – Retirement Plans for additional details).