Shareholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Note 11.  Shareholders' Equity

Regulatory Capital

The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2012 and 2011:

(dollars in thousands)	Well Capitalized Minimum Ratio		Company			Bank
As of December 31, 2012:
Shareholders' Equity			$	1,021,665		$	977,591
Tier 1 Capital			926,603			896,658
Total Capital			999,183			969,144
Tier 1 Capital Ratio	6	%	16.13		%	15.63		%
Total Capital Ratio	10	%	17.39		%	16.89		%
Tier 1 Leverage Ratio	5	%	6.83		%	6.63		%
As of December 31, 2011:
Shareholders' Equity			$	1,002,667		$	926,673
Tier 1 Capital			903,173			841,308
Total Capital			971,797			909,838
Tier 1 Capital Ratio	6	%	16.68		%	15.56		%
Total Capital Ratio	10	%	17.95		%	16.83		%
Tier 1 Leverage Ratio	5	%	6.73		%	6.30		%

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by regulators about the components of regulatory capital, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Tier 1 and Total Capital. Tier 1 Capital is common shareholders' equity, reduced by certain intangible assets, postretirement benefit liability adjustments, and unrealized gains and losses on investment securities. Total Capital is Tier 1 Capital plus an allowable amount of the reserve for credit losses. Three capital ratios are used to measure capital adequacy: Tier 1 Capital divided by risk-weighted assets, as defined; Total Capital divided by risk-weighted assets; and the Tier 1 Leverage ratio, which is Tier 1 Capital divided by quarterly average total assets.

As of December 31, 2012, the Company and the Bank were well capitalized as defined in the regulatory framework for prompt corrective action. There were no conditions or events since December 31, 2012 that management believes have changed the Company or the Bank's capital ratings.

Dividends

Dividends paid by the Parent are substantially funded from dividends received from the Bank. The Bank is subject to federal and state regulatory restrictions that limit cash dividends and loans to the Parent. These restrictions generally require advanced approval from the Bank's regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years.

Common Stock Repurchase Program

The Parent has a common stock repurchase program in which shares repurchased are held in treasury stock for reissuance in connection with share-based compensation plans and for general corporate purposes. For the year ended December 31, 2012, the Parent repurchased 1.7 million shares of common stock at an average cost per share of $46.32 and a total cost of $79.5 million. From the beginning of the stock repurchase program in July 2001 through December 31, 2012, the Parent repurchased a total of 50.2 million shares of common stock and returned a total of $1.8 billion to its shareholders at an average cost of $36.33 per share. Remaining buyback authority under the common stock repurchase program was $69.5 million as of December 31, 2012. From January 1, 2013 through February 14, 2013, the Parent repurchased an additional 67,000 shares of common stock at an average cost of $47.45 per share for a total of $3.2 million. Remaining buyback authority under the common stock repurchase program was $66.3 million as of February 14, 2013. The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income, net of tax, which is a component of shareholders' equity were as follows:

(dollars in thousands)	Net Unrealized Gains on Investment Securities				Defined Benefit Plans				Accumulated Other Comprehensive Income
Balance, December 31, 2009		$	26,290			$	(19,365	)		$	6,925
Net change		20,231				(191		)		20,040
Balance, December 31, 2010		46,521				(19,556		)		26,965
Net change		16,411				(8,113		)		8,298
Balance, December 31, 2011		62,932				(27,669		)		35,263
Net change		(3,155		)		(2,900		)		(6,055		)
Balance, December 31, 2012		$	59,777			$	(30,569	)		$	29,208

The following table presents the components of other comprehensive income (loss), net of tax:

(dollars in thousands)	Before Tax			Tax Effect			Net of Tax
December 31, 2012:
Net Unrealized Losses on Investment Securities:
Net Unrealized Gains Arising During the Period	$	10,846		$	4,312		$	6,534
Less: Reclassification Adjustment for Gains Realized in Net Income 1	(15,999		)	(6,310		)	(9,689		)
Net Unrealized Losses on Investment Securities	(5,153		)	(1,998		)	(3,155		)
Defined Benefit Plans:
Net Actuarial Losses Arising During the Period	(5,798		)	(2,295		)	(3,503		)
Amortization of Accumulated Benefit Plan Losses	1,318			520			798
Amortization of Prior Service Credit Included in Net Periodic Benefit Cost	(322		)	(127		)	(195		)
Defined Benefit Plans, Net	(4,802		)	(1,902		)	(2,900		)
Other Comprehensive Loss	$	(9,955	)	$	(3,900	)	$	(6,055	)
December 31, 2011:
Net Unrealized Gains on Investment Securities:
Net Unrealized Gains Arising During the Period	$	40,645		$	16,037		$	24,608
Less: Reclassification Adjustment for Gains Realized in Net Income 1	(13,525		)	(5,328		)	(8,197		)
Net Unrealized Gains on Investment Securities	27,120			10,709			16,411
Defined Benefit Plans:
Prior Service Credit from Plan Amendment During the Period	917			361			556
Amortization of Prior Service Credit Included in Net Periodic Benefit Cost	(322		)	(127		)	(195		)
Net Prior Service Credit	595			234			361
Net Actuarial Losses Arising During the Period	(17,368		)	(6,841		)	(10,527		)
Amortization of Accumulated Benefit Plan Losses	3,387			1,334			2,053
Defined Benefit Plans, Net	(13,386		)	(5,273		)	(8,113		)
Other Comprehensive Income	$	13,734		$	5,436		$	8,298
December 31, 2010:
Net Unrealized Gains on Investment Securities:
Net Unrealized Gains Arising During the Period	$	78,494		$	33,941		$	44,553
Less: Reclassification Adjustment for Gains Realized in Net Income	(42,848		)	(18,526		)	(24,322		)
Net Unrealized Gains on Investment Securities	35,646			15,415			20,231
Defined Benefit Plans:
Settlement Gain Related to Defined Benefit Plan	(951		)	(343		)	(608		)
Net Actuarial Losses Arising During the Period	(3,613		)	(5,955		)	2,342
Amortization of Accumulated Benefit Plan Losses	2,771			4,567			(1,796		)
Amortization of Prior Service Credit Included in Net Periodic Benefit Cost	(213		)	(84		)	(129		)
Defined Benefit Plans, Net	(2,006		)	(1,815		)	(191		)
Other Comprehensive Income	$	33,640		$	13,600		$	20,040

¹     Includes amounts related to the sales of investment securities and amounts related to the amortization of gains from the reclassification of available-for-sale

    investment securities to the held-to-maturity category made during the year ended December 31, 2011.