Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

7. Stockholders’ Equity

Common Shares Outstanding

Common shares outstanding excludes treasury shares totaling 6.5 and 6.3 million at September 30, 2024 and December 31, 2023, respectively, with a first-in-first-out cost basis of $255.1 million and $236.7 million at September 30, 2024 and December 31, 2023, respectively. Shares outstanding also excludes unvested restricted share awards totaling 0.3 million at both September 30, 2024 and December 31, 2023.

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 approximately 4.3 million shares of its outstanding 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 from time to time, depending on market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission. 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 nine months ended September 30, 2024, the Company repurchased 612,913 shares of its common stock at an average cost of $48.63 per share, inclusive of commissions, under this program. No shares were repurchased under this program in 2023. The Company has accrued $0.2 million of estimated excise tax associated with share repurchases during the nine months ended September 30, 2024.

Accumulated Other Comprehensive Income (Loss)

A roll-forward of the components of Accumulated Other Comprehensive Income (Loss) is presented in the table that follows:

($ in thousands)	Available for Sale Securities			HTM Securities Transferred from AFS			Employee Benefit Plans			Cash Flow Hedges			Equity Method Investment			Total
Balance, December 31, 2023	$	(450,748	)	$	(9,385	)	$	(103,061	)	$	(58,306	)	$	373		$	(621,127	)
Net change in unrealized gain (loss)		132,391			—			—			(10,495	)		(344	)		121,552
Reclassification of net loss realized and included in earnings		—			—			3,569			38,120			—			41,689
Valuation adjustments to employee benefit plans		—			—			22,014			—			—			22,014
Amortization of unrealized net loss on securities transferred to HTM		—			1,279			—			—			—			1,279
Income tax expense		(28,958	)		(268	)		(5,555	)		(6,122	)		—			(40,903	)
Balance, September 30, 2024	$	(347,315	)	$	(8,374	)	$	(83,033	)	$	(36,803	)	$	29		$	(475,496	)
Balance, December 31, 2022	$	(584,408	)	$	(10,734	)	$	(97,952	)	$	(79,093	)	$	5		$	(772,182	)
Net change in unrealized gain (loss)		(142,980	)		—			—			(44,823	)		714			(187,089	)
Reclassification of net loss realized and included in earnings		—			—			5,010			28,609			—			33,619
Valuation adjustments to employee benefit plans		—			—			(7,307	)		—			—			(7,307	)
Amortization of unrealized net loss on securities transferred to HTM		—			1,343			—			—			—			1,343
Income tax (expense) benefit		32,757			(302	)		517			3,650			—			36,622
Balance, September 30, 2023	$	(694,631	)	$	(9,693	)	$	(99,732	)	$	(91,657	)	$	719		$	(894,994	)

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 6 - Derivatives will be reclassified into income over the life of the hedge. Accumulated other comprehensive loss resulting from terminated interest rate swaps are being 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.

	Nine Months Ended
Amount reclassified from AOCI (a)	September 30,						Affected line item on
($ in thousands)	2024			2023			the statement of income
Amortization of unrealized net loss on securities transferred to HTM	$	(1,279	)	$	(1,343	)	Interest income
Tax effect		268			302		Income taxes
Net of tax		(1,011	)		(1,041	)	Net income
Amortization of defined benefit pension and post-retirement items		(3,569	)		(5,010	)	Other noninterest expense (b)
Tax effect		775			1,128		Income taxes
Net of tax		(2,794	)		(3,882	)	Net income
Reclassification of unrealized loss on cash flow hedges		(37,257	)		(34,506	)	Interest income
Tax effect		8,257			7,768		Income taxes
Net of tax		(29,000	)		(26,738	)	Net income
Amortization of gain (loss) on terminated cash flow hedges		(863	)		5,897		Interest income
Tax effect		191			(1,327	)	Income taxes
Net of tax		(672	)		4,570		Net income
Total reclassifications, net of tax	$	(33,477	)	$	(27,091	)	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 11 – Retirement Plans for additional details).