Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Stockholders' Equity

6. Stockholders’ Equity

Stock Repurchase Program

The Company’s board of directors approved a stock repurchase program on April 30, 2013 that authorizes the repurchase of up to 5% of the Company’s outstanding common stock.

On May 8, 2013 Hancock entered into an accelerated share repurchase (ASR) transaction with Morgan Stanley & Co. LLC (Morgan Stanley). In the ASR transaction, the Company paid $115 million to Morgan Stanley and received from them approximately 2.8 million shares of Hancock common stock, representing approximately 76% of the estimated total number of shares to be repurchased. The actual number of shares to be delivered to the Company in this ASR transaction will be based generally on the volume-weighted average price per share of the Hancock common stock during the term of the ASR agreement less a specified discount and on the amount paid at inception to Morgan Stanley, subject to certain possible adjustments in accordance with the terms of the ASR agreement. Final settlement of the ASR agreement is scheduled to occur no earlier than November, 2013 and no later than May, 2014. The ASR transaction was treated as two separate transactions: (i) the acquisition of treasury shares on the date the shares were received; and (ii) a forward contract indexed to the Company’s common stock that is classified as equity.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (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. The net unrealized gain on AFS securities reclassified as securities held to maturity (HTM) during 2012 and the net unrealized loss on AFS securities reclassified as securities held to maturity (HTM) during 2013 continue to be reported as a component of AOCI and will be amortized or accreted over the estimated remaining life of the securities as an adjustment to interest income. The components of AOCI are reported net of related tax effects. The components of AOCI and changes in those components are presented in the following table (in thousands).

	Available			HTM Securities						Loss on
	for Sale			Transferred			Employee			Effective Cash
	Securities			from AFS			Benefit Plans			Flow Hedges			Total
Balance, January 1, 2012	$	60,478		$	—		$	(86,923	)	$	(65	)	$	(26,510	)
Other comprehensive income before income taxes:
Net change in unrealized gain (loss)		24,780			—			—			(370	)		24,410
Transfer of net unrealized gain from AFS to HTM, net of cumulative tax effect		(24,598	)		24,598			—			—			—
Reclassification of net (gains) losses realized and included in earnings		(929	)		—			5,260			40			4,371
Amortization of unrealized net gain on securities transferred to HTM		—			(5,645	)		—			—			(5,645	)
Income tax expense (benefit)		8,693			(2,122	)		1,971			(129	)		8,413
Balance, September 30, 2012	$	51,038		$	21,075		$	(83,634	)	$	(266	)	$	(11,787	)
Balance, January 1, 2013	$	38,854		$	19,090		$	(80,688	)	$	(181	)	$	(22,925	)
Other comprehensive income before income taxes:
Net change in unrealized gain (loss)		(96,070	)		—			—			(4	)		(96,074	)
Transfer of net unrealized loss from AFS to HTM, net of cumulative tax effect		36,208			(36,208	)		—			—			—
Reclassification of net (gains) losses realized and included in earnings		—			—			5,534			301			5,835
Amortization/accretion of unrealized net gain/loss on securities transferred to HTM		—			(7,099	)		—			—			(7,099	)
Income tax expense (benefit)		(35,115	)		(2,563	)		2,070			116			(35,492	)
Balance, September 30, 2013	$	14,107		$	(21,654	)	$	(77,224	)	$	—		$	(84,771	)

The following table shows the line items in the consolidated income statements affected by amounts reclassified from accumulated other comprehensive income:

	Nine Months Ended September 30,						Increase (decrease) in affected
Amount reclassified from AOCI (in thousands)	2013			2012			line item in the income statement
Gains and losses on sale of AFS securities	$	—		$	929		Securities gains (losses)
Tax effect		—			325		Income taxes
Net of tax		—			604		Net income
Amortization/accretion of unrealized net gain/loss on securities transferred to HTM	$	7,099		$	5,645		Interest income
Tax effect		2,563			2,122		Income taxes
Net of tax		4,536			3,523		Net income
Amortization of defined benefit pension and post-retirement items	$	(5,534	)	$	(5,260	)	(a)
Tax effect		(2,070	)		(1,971	)	Income taxes
Net of tax		(3,464	)		(3,289	)	Net income
Gains and losses on cash flow hedges	$	(301	)	$	(40	)	Interest expense
Tax effect		(105	)		(14	)	Income taxes
Net of tax		(196	)		(26	)	Net income
Total reclassifications, net of tax	$	876		$	812		Net income

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and post-retirement cost that is reported with employee benefits expense (see footnote 9 for additional details).