Long-Term Debt and Shareholders' Equity

6 Months Ended

Jun. 30, 2022

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

The long-term debt carrying values in the following schedule 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.

LONG-TERM DEBT


(In millions)	June 30, 2022		December 31, 2021		Amount change		Percent change



Subordinated notes	$	540	$	590	$	(50)	(8)	%
Senior notes	127		418		(291)		(70)

Finance lease obligations	4		4		—		—
Total	$	671	$	1,012	$	(341)	(34)	%

The decrease in long-term debt was primarily due to the redemption of $290 million of the 4-year, 3.35% senior notes during the first quarter of 2022.

Common Stock

Our common stock is traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Select Market. At June 30, 2022, there were 150.5 million shares of $0.001 par value common stock outstanding. Common stock and additional paid-in capital totaled $1.8 billion at June 30, 2022, which decreased $83 million, or 4%, from December 31, 2021, primarily due to common stock repurchases. During the first six months of 2022, we repurchased 1.7 million common shares outstanding for $100 million at an average price of $58.82 per share.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) decreased to a loss of $2.1 billion at June 30, 2022, primarily due to decreases in the fair value of fixed-rate available-for-sale securities as a result of 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, 2022
Balance at December 31, 2021	$	(78)	$	—	$	(2)	$	(80)
OCI (loss) before reclassifications, net of tax	(1,820)		(185)		—		(2,005)
Amounts reclassified from AOCI, net of tax	—		(15)		—		(15)
Other comprehensive loss	(1,820)		(200)		—		(2,020)
Balance at June 30, 2022	$	(1,898)	$	(200)	$	(2)	$	(2,100)
Income tax benefit included in OCI (loss)	$	(590)	$	(65)	$	—	$	(655)
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 OCI (loss)	$	(42)	$	(6)	$	—	$	(48)


	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	2022		2021		2022		2021			Affected line item











Net unrealized gains on derivative instruments	$	6	$	15	$	20	$	31	SI	Interest and fees on loans
Income tax expense	2		4		5		8
Amounts reclassified from AOCI	$	4	$	11	$	15	$	23

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