EQUITY

Preferred Stock

The Company had no depositary shares outstanding at December 31, 2018 and 2,000,000 depositary shares outstanding at December 31, 2017 (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 December 31, 2017.

On May 8, 2018, the Company provided notice of the redemption of all of the Company's issued and outstanding Series D preferred stock. The redemption was in accordance with the terms of the Company’s Restated Articles of Organization, as amended, and the Master Depositary Agreement between the Company and the Depositary. There were 50,000 shares of Preferred Stock, or $50 million aggregate liquidation preference, outstanding at the time of redemption. The redemption date for the Preferred Stock was June 15, 2018 (the "Redemption Date"). Under the terms of the Preferred Stock, the redemption price was 100% of the liquidation preference of the Preferred Stock to be redeemed, or $1,000.00 per share of Preferred Stock, together with any accumulated and unpaid dividends on such Preferred Stock up to, but not including, the redemption date.

Upon the receipt of the aggregate redemption price of the Preferred Stock, the Depositary redeemed those depositary shares held by the public and traded on the NASDAQ Global Select Market under the symbol "BPFHP." There were 2,000,000 Depositary Shares, or $50 million aggregate liquidation preference, outstanding at the time of the redemption. Under the terms of the Depositary Shares, the redemption price was 100% of the liquidation preference of the Depositary Shares to be redeemed, or $25.00 per Depositary Share, together with any accumulated and unpaid dividends on such Depositary Shares up to, but not including, the redemption date.

Common Stock

The Company has 170 million shares of common stock authorized for issuance. At December 31, 2018, it had 83,655,651 shares outstanding and 86,344,349 shares available for future issuance. At December 31, 2017, it had 84,208,538 shares outstanding and 85,791,462 shares available for future issuance.

Warrants to Purchase Common Stock

At December 31, 2018, the Company had no outstanding warrants. At December 31, 2017 the company had 1,692,755 warrants to purchase shares of common stock outstanding. These warrants were initially issued to the U.S. Department of the Treasury (the “Treasury”) (the “TARP warrants”) and expired on November 21, 2018. Any warrants that were not exercised by November 21, 2018 have expired.

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, 2018, 2017, and 2016:



	2018									2017						2016
	Pre- tax			Tax effect			Net of Tax			Pre- tax		Tax effect		Net of Tax		Pre- tax			Tax effect			Net of Tax
	(In thousands)
Unrealized gain/ (loss) on securities available-for-sale
Net gains/ (losses) arising during period	$	(13,205	)	$	(3,702	)	$	(9,503	)	$	7,782	$	3,063	$	4,719	$	(18,913	)	$	(7,555	)	$	(11,358	)
Less: Adjustment for realized gains/ (losses), net	(596		)	(170		)	(426		)	376		154		222		521			190			331
Net change	(12,609		)	(3,532		)	(9,077		)	7,406		2,909		4,497		(19,434		)	(7,745		)	(11,689		)
Unrealized gain/ (loss) on cash flow hedges
Net gains/ (losses) arising during period	985			285			700			325		135		190		(793		)	(332		)	(461		)
Add: scheduled reclass and other	(907		)	(261		)	(646		)	1,179		491		688		1,666			687			979
Net change	78			24			54			1,504		626		878		873			355			518
Unrealized gain/ (loss) on other
Net gains/ (losses) arising during period	416			120			296			84		34		50		200			77			123
Net change	416			120			296			84		34		50		200			77			123
Total other comprehensive income/ (loss)	(12,115		)	(3,388		)	(8,727		)	8,994		3,569		5,425		(18,361		)	(7,313		)	(11,048		)
Net income attributable to the Company (1)	117,921			37,537			80,384			86,787		46,196		40,591		102,591			30,963			71,628
Total comprehensive income	$	105,806		$	34,149		$	71,657		$	95,781	$	49,765	$	46,016	$	84,230		$	23,650		$	60,580

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(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, 2018, 2017, and 2016:



Description of component of accumulated other comprehensive income/ (loss)	Year ended December 31,									Affected line item in Statement of Operations
	2018			2017			2016			Affected line item in Statement of Operations
	(In thousands)
Adjustment for realized gains/(losses) on securities available-for-sale, net:
Pre-tax	$	(596	)	$	376		$	521		Gain/ (loss) on sale of investments, net
Tax expense/ (benefit)	(170		)	154			190			Income tax expense
Net	$	(426	)	$	222		$	331		Net income attributable to the Company
Net realized gain/ (loss) on cash flow hedges:
Hedge related to deposits
Pre-tax	$	(907	)	$	1,179		$	1,666		Interest expense on deposits
Tax expense/ (benefit)	(261		)	491			687			Income tax expense
Net	$	646		$	(688	)	$	(979	)	Net income attributable to the Company
Total reclassifications for the period, net of tax	$	646		$	(688	)	$	(979	)

On January 1, 2018 the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

On January 1, 2018 the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

The following table presents the after-tax changes in the components of the Company’s accumulated other comprehensive income/ (loss) for the years ended December 31, 2018, 2017, and 2016:



	Components of accumulated other comprehensive income/ (loss)
	Unrealized gain/ (loss) on securities available-for-sale			Unrealized gain/ (loss) on cash flow hedges			Unrealized gain/ (loss) on other			Accumulated other comprehensive income/ (loss)
	(In thousands)
Balance at December 31, 2015	$	495		$	(1,123	)	$	(872	)	$	(1,500	)
Other comprehensive income/ (loss) before reclassifications	(11,358		)	(461		)	123			(11,696		)
Amounts reclassified from other comprehensive income/ (loss)	(331		)	979			—			648
Other comprehensive income/ (loss), net	(11,689		)	518			123			(11,048		)
Balance at December 31, 2016	(11,194		)	(605		)	(749		)	(12,548		)
Other comprehensive income/ (loss) before reclassifications	4,719			190			50			4,959
Amounts reclassified from other comprehensive income/ (loss)	(222		)	688			—			466
Other comprehensive income/ (loss), net	4,497			878			50			5,425
Balance at December 31, 2017	(8,140		)	332			(850		)	(8,658		)
Other comprehensive income/ (loss) before reclassifications	(9,503		)	700			296			(8,507		)
Amounts reclassified from other comprehensive income/ (loss)	426			(646		)	—			(220		)
Other comprehensive income/ (loss), net	(9,077		)	54			296			(8,727		)
Reclassification due to the adoption of ASU 2017-12 and 2016-01	(339		)	5			—			(334		)
Balance at December 31, 2018	$	(17,556	)	$	391		$	(554	)	$	(17,719	)