Debt And Shareholders' Equity

3 Months Ended

Mar. 31, 2015

Capitalization, Long-term Debt and Equity [Abstract]

Debt And Shareholders' Equity

DEBT AND SHAREHOLDERS’ EQUITY

Long-term debt is summarized as follows:

(In thousands)	March 31, 2015		December 31, 2014
Junior subordinated debentures related to trust preferred securities	$	168,043	$	168,043
Convertible subordinated notes	138,002		132,838
Subordinated notes	335,341		335,798
Senior notes	424,901		432,385
FHLB advances	22,009		22,156
Capital lease obligations and other	1,025		1,062
Total	$	1,089,321	$	1,092,282

The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount or other basis adjustments, including the value of associated hedges.

Maturities of long-term debt in 2015 include the following:

	Coupon rate	Carrying value
(Amounts in thousands)		March 31, 2015		Maturity
Convertible subordinated note	6.00%	$	73,397	September 15, 2015
Subordinated note	6.00%	32,706		September 15, 2015
Convertible subordinated note	5.50%	64,606		November 16, 2015
Subordinated note	5.50%	52,744		November 16, 2015
		$	223,453

In addition, at March 31, 2015, we have optional early redemptions totaling $30.3 million for long-term senior notes as follows: $19.2 million on May 30, 2015 and $11.1 million on June 30, 2016. We have given notice that we will redeem in full the $19.2 million of senior notes. During the first quarter of 2015, we redeemed $8 million of senior notes.

Basel III Capital Framework

Effective January 1, 2015, we adopted the new Basel III capital framework that was issued by the Federal Reserve for U.S. banking organizations. We adopted the new capital rules on a 2015 phase-in basis and will adopt the fully phased-in requirements effective January 1, 2019. As of March 31, 2015, we made the “opt-out” election with respect to the regulatory capital treatment of AOCI under the Basel III framework.

Among other things, the new rules revise capital adequacy guidelines and the regulatory framework for prompt corrective action, and they modify specified quantitative measures of our assets, liabilities, and capital. The impact of these new rules will require the Company to maintain capital in excess of current “well-capitalized” regulatory standards.

Accumulated Other Comprehensive Income

Changes in AOCI by component are as follows:

(In thousands)	Net unrealized gains (losses) on investment securities				Net unrealized gains (losses) on derivatives and other				Pension and post-retirement			Total
Three Months Ended March 31, 2015
Balance at December 31, 2014		$	(91,921	)		$	2,226		$	(38,346	)	$	(128,041	)
Other comprehensive income before reclassifications, net of tax		11,424				2,189			—			13,613
Amounts reclassified from AOCI, net of tax		148				(629		)	—			(481		)
Other comprehensive income		11,572				1,560			—			13,132
Balance at March 31, 2015		$	(80,349	)		$	3,786		$	(38,346	)	$	(114,909	)
Income tax expense included in other comprehensive income		$	6,957			$	1,088		$	—		$	8,045
Three Months Ended March 31, 2014
Balance at December 31, 2013		$	(168,805	)		$	1,556		$	(24,852	)	$	(192,101	)
Other comprehensive income (loss) before reclassifications, net of tax		73,907				(2,521		)	—			71,386
Amounts reclassified from AOCI, net of tax		(24,537		)		(210		)	—			(24,747		)
Other comprehensive income (loss)		49,370				(2,731		)	—			46,639
Balance at March 31, 2014		$	(119,435	)		$	(1,175	)	$	(24,852	)	$	(145,462	)
Income tax expense (benefit) included in other comprehensive income (loss)		$	40,396			$	(1,683	)	$	—		$	38,713

	Amounts reclassified from AOCI 1						Statement of income (SI) Balance sheet (BS)
(In thousands)	Three Months Ended March 31,
Details about AOCI components	2015			2014				Affected line item
Net realized gains (losses) on investment securities	$	(239	)	$	30,914		SI	Fixed income securities gains (losses), net
Income tax expense (benefit)	(91		)	6,074
	(148		)	24,840
Net unrealized losses on investment securities	—			(27		)	SI	Net impairment losses on investment securities
Income tax benefit	—			(10		)
	—			(17		)
Accretion of securities with noncredit-related impairment losses not expected to be sold	—			(482		)	BS	Investment securities, held-to-maturity
Deferred income taxes	—			196			BS	Other assets
	$	(148	)	$	24,537
Net unrealized gains on derivative instruments	$	1,016		$	351		SI	Interest and fees on loans
Income tax expense	387			141
	$	629		$	210

¹ Negative reclassification amounts indicate decreases to earnings in the statement of income and increases to balance sheet assets. The opposite applies to positive reclassification amounts.