Long-Term Debt and Shareholders' Equity

6 Months Ended

Jun. 30, 2021

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

Long-term debt is summarized as follows:


(In millions)	June 30, 2021		December 31, 2020



Subordinated notes	$	596	$	619
Senior notes	708		713

Finance lease obligations	4		4
Total	$	1,308	$	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. At June 30, 2021, there were 162.2 million shares of $0.001 par value common stock outstanding. The balance of common stock and additional paid-in capital was $2.6 billion at June 30, 2021, and decreased $121 million, or 5%, from December 31, 2020, primarily due to common stock repurchases. During the first six months of 2021, we repurchased 2.7 million common shares outstanding for $150 million at an average price of $54.94 per share.

Preferred Stock

During the second quarter of 2021, we redeemed the outstanding shares of our 5.75% Series H Non-Cumulative Perpetual Preferred Stock at par value, resulting in a $126 million decrease of preferred stock. There were no additional fees or premium paid associated with the redemption.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income decreased to $175 million at June 30, 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
Six Months Ended June 30, 2021
Balance at December 31, 2020	$	258	$	69	$	(2)	$	325

OCI (loss) before reclassifications, net of tax	(130)		3		—		(127)
Amounts reclassified from AOCI, net of tax	—		(23)		—		(23)
Other comprehensive income (loss)	(130)		(20)		—		(150)
Balance at June 30, 2021	$	128	$	49	$	(2)	$	175
Income tax benefit included in other comprehensive income (loss)	$	(42)	$	(6)	$	—	$	(48)
Six Months Ended June 30, 2020
Balance at December 31, 2019	$	29	$	28	$	(14)	$	43

OCI before reclassifications, net of tax	241		71		13		325
Amounts reclassified from AOCI, net of tax	—		(13)		—		(13)
Other comprehensive income	241		58		13		312
Balance at June 30, 2020	$	270	$	86	$	(1)	$	355
Income tax expense included in OCI	$	79	$	19	$	4	$	102


	Amounts reclassified from AOCI 1				Amounts reclassified from AOCI 1				Statement of income (SI)
(In millions)	Three Months Ended June 30,				Six Months Ended June 30,
Details about AOCI components	2021		2020		2021		2020			Affected line item











Net unrealized gains on derivative instruments	$	15	$	13	$	31	$	17	SI	Interest and fees on loans
Income tax expense	4		3		8		4
Amounts Reclassified from AOCI	$	11	$	10	$	23	$	13

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