Comprehensive Income

3 Months Ended

Mar. 31, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income

Comprehensive Income

The components of comprehensive income, both gross and net of tax, for First Quarter 2022 and First Quarter 2021 were as follows:

First Quarter 2022
($ in thousands)	Gross		Tax	Net
Net income	$	69,890	13,560	56,330
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(261,832)		(54,984)	(206,848)
Unrealized losses on securities with credit loss recognized in earnings	(86,621)		(18,191)	(68,430)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized losses on disposals and intent-to-sell AFS securities	15,991		3,358	12,633
Credit loss expense	22,052		4,631	17,421
Total unrealized losses on investment securities	(310,409)		(65,186)	(245,223)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	417		88	329
Total defined benefit pension and post-retirement plans	417		88	329
Other comprehensive loss	(309,992)		(65,098)	(244,894)
Comprehensive loss	$	(240,102)	(51,538)	(188,564)
First Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	135,632	26,362	109,270
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,308)		(21,695)	(81,613)
Unrealized losses on securities with credit loss recognized in earnings	(11,320)		(2,377)	(8,943)
Amounts reclassified into net income:
HTM securities	(2)		—	(2)
Net realized losses on disposals and intent-to-sell AFS securities	604		127	477
Credit loss expense	4,997		1,049	3,948
Total unrealized losses on investment securities	(109,029)		(22,896)	(86,133)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		146	547
Total defined benefit pension and post-retirement plans	693		146	547
Other comprehensive loss	(108,336)		(22,750)	(85,586)
Comprehensive income	$	27,296	3,612	23,684

The balances of, and changes in, each component of AOCI (net of taxes) as of March 31, 2022 were as follows:

	Net Unrealized (Losses) Gains on Investment Securities					Defined Benefit Pension and Post-Retirement Plans	Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2021	$	(4,287)	(3)	185,170	180,880	(65,781)	115,099
OCI before reclassifications	(68,430)		—	(206,848)	(275,278)	—	(275,278)
Amounts reclassified from AOCI	17,421		1	12,633	30,055	329	30,384
Net current period OCI	(51,009)		1	(194,215)	(245,223)	329	(244,894)
Balance, March 31, 2022	$	(55,296)	(2)	(9,045)	(64,343)	(65,452)	(129,795)

1Represents change in unrealized loss on securities with credit loss recognized in earnings.

The reclassifications out of AOCI were as follows:

	Quarter ended March 31,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2022		2021
HTM related
Unrealized (gains) losses on HTM disposals	$	—	—	Net realized and unrealized investment (losses) gains
Amortization of net unrealized losses (gains) on HTM securities	1		(2)	Net investment income earned
	1		(2)	Income before federal income tax
	—		—	Total federal income tax expense
	1		(2)	Net income
Net realized losses on disposals and intent-to-sell AFS securities
Net realized losses on disposals and intent-to-sell AFS securities	15,991		604	Net realized and unrealized investment (losses) gains
	15,991		604	Income before federal income tax
	(3,358)		(127)	Total federal income tax expense
	12,633		477	Net income
Credit loss related
Credit loss expense	22,052		4,997	Net realized and unrealized investment (losses) gains
	22,052		4,997	Income before federal income tax
	(4,631)		(1,049)	Total federal income tax expense
	17,421		3,948	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	96		159	Loss and loss expense incurred
	321		534	Other insurance expenses
Total defined benefit pension and post-retirement life	417		693	Income before federal income tax
	(88)		(146)	Total federal income tax expense
	329		547	Net income
Total reclassifications for the period	$	30,384	4,970	Net income