Long-Term Debt and Shareholders' Equity

3 Months Ended

Mar. 31, 2021

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

Long-term debt is summarized as follows:


(In millions)	March 31, 2021		December 31, 2020



Subordinated notes	$	584	$	619
Senior notes	711		713

Finance lease obligations	4		4
Total	$	1,299	$	1,336

The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount, unamortized debt issuance costs, and basis adjustments for interest rate swaps designated as fair value hedges.

Common Stock

Our common stock is traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Select Market. As of March 31, 2021, there were 164.0 million shares of $0.001 par value common stock outstanding. The balance of common stock and additional paid-in capital was $2.7 billion at March 31, 2021, and decreased $33 million, or 1%, from December 31, 2020, primarily due to common stock repurchases. During the

first quarter of 2021, we repurchased 1.0 million common shares outstanding for $50 million at an average price of $49.78 per share.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income decreased to $148 million at March 31, 2021, from $325 million at December 31, 2020, primarily as a result of decreases in the fair value of AFS securities due to changes in interest rates. Changes in AOCI by component are as follows:


(In millions)	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, 2021
Balance at December 31, 2020	$	258	$	69	$	(2)	$	325

OCI (loss) before reclassifications, net of tax	(165)		(1)		—		(166)
Amounts reclassified from AOCI, net of tax	—		(11)		—		(11)
Other comprehensive income (loss)	(165)		(12)		—		(177)
Balance at March 31, 2021	$	93	$	57	$	(2)	$	148
Income tax benefit included in other comprehensive income (loss)	$	(53)	$	(4)	$	—	$	(57)
Three Months Ended March 31, 2020
Balance at December 31, 2019	$	29	$	28	$	(14)	$	43

OCI before reclassifications, net of tax	147		71		—		218
Amounts reclassified from AOCI, net of tax	—		(2)		—		(2)
Other comprehensive income	147		69		—		216
Balance at March 31, 2020	$	176	$	97	$	(14)	$	259
Income tax expense included in OCI	$	48	$	23	$	—	$	71


	Amounts reclassified from AOCI 1				Statement of income (SI)
(In millions)	Three Months Ended March 31,
Details about AOCI components	2021		2020				Affected line item











Net unrealized gains on derivative instruments	$	15	$	3		SI	Interest and fees on loans
Income tax expense	4		1
Amounts Reclassified from AOCI	11		2

1 Positive reclassification amounts indicate increases to earnings in the statement of income.