EQUITY

Preferred Stock

The Company has 2,000,000 depositary shares outstanding at both December 31, 2016 and December 31, 2015 (the “Depositary Shares”). Each Depositary Share represents a 1/40th interest in a share of the Company’s 6.95% Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share and liquidation preference of $1,000 per share (the “Series D preferred stock”). This represents the entire $47.8 million balance of preferred stock on the Company’s balance sheet at both December 31, 2016 and December 31, 2015. The ability of the Company to declare and pay dividends on, or purchase, redeem or otherwise acquire, shares of its preferred stock or any securities of the Company that rank junior to the Series D preferred stock is subject to certain restrictions in the event that the Company does not declare and pay (or set aside) dividends on the Series D preferred stock for the last preceding quarterly dividend period.

Common Stock

The Company has 170 million shares of common stock authorized for issuance. At December 31, 2016, it had 83,731,769 shares outstanding and 86,268,231 shares available for future issuance, including shares reserved for future issuance pursuant to the Company’s stock-based compensation plans, as discussed in Part II. Item 8. “Financial Statements and Supplementary Data - Note 18: Employee Benefits.” At December 31, 2015, it had 83,410,961 shares outstanding and 86,589,039 shares available for future issuance,

Warrants to Purchase Common Stock

The Company currently has one class of warrants to purchase common stock outstanding. These warrants were initially issued to the U.S. Department of the Treasury (the “Treasury”) (the “TARP warrants”). The following table summarizes the terms of the TARP warrant agreement outstanding at December 31, 2016:

Name of warrants

Number of

warrants

Original

warrant

number

Current

warrant

number (2)

Original

exercise

price of

warrants

Current

exercise

price of

warrants (2)

Date

issued

Expiration

date

TARP Warrants (1)

2,068,161

1.00

1.11

$8.000

$7.206

11/21/2008

11/21/2018

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(1)	The TARP warrants, while initially issued to the Treasury, were purchased from the Treasury by unrelated third parties at a market rate.

(2)

Per the terms of the TARP warrant agreement, the exercise price and number of shares issuable upon exercise may be adjusted ratably for dividends paid on the Company’s common stock that exceed the dividend rate at the time the warrants were issued, at which time the Company paid quarterly dividends of $0.01 per share. The current warrant share number and current exercise price of the warrant reflect the warrant as adjusted for common stock dividends through February 3, 2017, the latest dividend record date prior to the filing of this Annual Report.

Accumulated Other Comprehensive Income

Other comprehensive income/ (loss) represents the change in equity of the Company during a year from transactions and other events and circumstances from non-shareholder sources. It includes all changes in equity during a year except those resulting from investments by shareholders and distributions to shareholders.

The following table presents the Company’s comprehensive income/ (loss) and related tax effect for the years ended December 31, 2016, 2015, and 2014:



	Other comprehensive income/(loss):
	Pre-tax			Tax expense/ (benefit)			Net
	(In thousands)
2016
Unrealized gain/ (loss) on securities available-for-sale	$	(18,913	)	$	(7,555	)	$	(11,358	)
Less: Adjustment for realized gains/ (losses), net	521			190			331
Net unrealized gain/ (loss) on securities available-for-sale	(19,434		)	(7,745		)	(11,689		)
Unrealized gain/ (loss) on cash flow hedge	(793		)	(332		)	(461		)
Add: scheduled reclass and other	1,666			687			979
Net unrealized gain/ (loss) on cash flow hedge	873			355			518
Net unrealized gain/ (loss) on other	200			77			123
Other comprehensive gain/ (loss)	(18,361		)	(7,313		)	(11,048		)
Net income attributable to the Company (1)	102,591			30,963			71,628
Total comprehensive income	$	84,230		$	23,650		$	60,580
2015
Unrealized gain/ (loss) on securities available-for-sale	$	(2,494	)	$	(1,145	)	$	(1,349	)
Less: Adjustment for realized gains/ (losses), net	236			97			139
Net unrealized gain/ (loss) on securities available-for-sale	(2,730		)	(1,242		)	(1,488		)
Unrealized gain/ (loss) on cash flow hedges	(2,642		)	(1,088		)	(1,554		)
Add: scheduled reclass and other	4,052			1,698			2,354
Net unrealized gain/ (loss) on cash flow hedges	1,410			610			800
Net unrealized gain/ (loss) on other	(193		)	(78		)	(115		)
Other comprehensive gain/ (loss)	(1,513		)	(710		)	(803		)
Net income attributable to the Company (1)	95,317			30,392			64,925
Total comprehensive income	$	93,804		$	29,682		$	64,122
2014
Unrealized gain/ (loss) on securities available-for-sale	$	6,231		$	2,495		$	3,736
Less: Adjustment for realized gains/ (losses), net	(7		)	(3		)	(4		)
Net unrealized gain/ (loss) on securities available-for-sale	6,238			2,498			3,740
Unrealized gain/ (loss) on cash flow hedges	(3,425		)	(1,416		)	(2,009		)
Add: scheduled reclass and other	3,198			1,349			1,849
Net unrealized gain/ (loss) on cash flow hedges	(227		)	(67		)	(160		)
Net unrealized gain/ (loss) on other	(135		)	(55		)	(80		)
Other comprehensive gain/ (loss)	5,876			2,376			3,500
Net income attributable to the Company (1)	101,180			32,365			68,815
Total comprehensive income	$	107,056		$	34,741		$	72,315

___________________


(1)	Pre-tax net income attributable to the Company is calculated as income before income taxes, plus net income from discontinued operations, less net income attributable to noncontrolling interests.

The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the years ended December 31, 2016, 2015, and 2014:



Description of component of accumulated other comprehensive income/ (loss)	Year ended December 31,									Affected line item in Statement of Operations
	2016			2015			2014			Affected line item in Statement of Operations
	(In thousands)
Adjustment for realized gains/(losses) on securities available-for-sale, net:
Pre-tax	$	521		$	236		$	(7	)	Gain/ (loss) on sale of investments, net
Tax expense/ (benefit)	190			97			(3		)	Income tax expense
Net	$	331		$	139		$	(4	)	Net income attributable to the Company
Net realized gain/ (loss) on cash flow hedges:
Hedge related to junior subordinated debentures:
Pre-tax	$	—		$	1,879		$	1,926		Interest expense on junior subordinated debentures
Tax expense/ (benefit)	—			804			824			Income tax expense
Net	$	—		$	(1,075	)	$	(1,102	)	Net income attributable to the Company
Hedge related to deposits
Pre-tax	$	1,666		$	2,173		$	1,272		Interest expense on deposits
Tax expense/ (benefit)	687			894			525			Income tax expense
Net	$	(979	)	$	(1,279	)	$	(747	)	Net income attributable to the Company
Total reclassifications for the period, net of tax	$	(979	)	$	(2,354	)	$	(1,849	)

The following table presents the components of the Company’s accumulated other comprehensive income/ (loss) as of December 31:



	2016			2015			2014
	(In thousands)
Unrealized gain/ (loss) on securities available-for-sale, net of tax	$	(11,194	)	$	495		$	1,983
Unrealized gain/ (loss) on cash flow hedges, net of tax	(605		)	(1,123		)	(1,923		)
Unrealized gain/ (loss) on other, net of tax	(749		)	(872		)	(757		)
Accumulated other comprehensive income/ (loss)	$	(12,548	)	$	(1,500	)	$	(697	)