Comprehensive Income

9 Months Ended

Sep. 30, 2011

Comprehensive Income

Comprehensive Income

NOTE 5 – COMPREHENSIVE INCOME

Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale and unrealized gains and losses on cash flow hedges and changes in funded status of pension plans which are also recognized as separate components of equity. Following is a summary of other comprehensive income for the three and nine months ended September 30, 2011 and 2010:

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(dollars in thousands)		2011			2010			2011			2010
Net income	$	16,797		$	11,896		$	50,246		$	32,488
Other comprehensive income
Change in securities available for sale:
Unrealized holding gains arising during the period		16,032			26,709			47,324			68,779
Reclassification for securities transferred to held-to-maturity		0			0			0			(9,371	)
Reclassification adjustment for securities gains realized in income		(2,861	)		(3,281	)		(5,026	)		(12,792	)
Other-than-temporary-impairment on available-for-sale debt securities
recorded in other comprehensive income		(140	)		0			(1,373	)		(1,133	)
Other-than-temporary-impairment on available-for-sale debt securities
associated with credit loss realized in income		0			39			499			3,308
Income tax effect		(5,149	)		(9,176	)		(16,202	)		(19,496	)
Change in securities held-to-maturity:
Fair value adjustment for securities transferred from available-for-sale		0			0			0			9,371
Amortization of fair value previously recognized into accumulated
other comprehensive income		(337	)		(416	)		(1,304	)		(860	)
Income tax effect		134			166			521			(3,401	)
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges		(412	)		201			(1,021	)		1,190
Reclassification adjustment on cash flow hedges		72			72			216			216
Income tax effect		137			(109	)		324			(561	)
Defined benefit pension plans:
Amortization of net loss recognized in income		1,154			750			3,137			1,552
Income tax effect		(461	)		(299	)		(1,255	)		(620	)
Total other comprehensive income		8,169			14,656			25,840			36,182
Comprehensive income	$	24,966		$	26,552		$	76,086		$	68,670

The following tables summarize the changes within each classification of accumulated other comprehensive income ("AOCI") for the nine months ended September 30, 2011 and 2010:

		AOCI at			Other			AOCI at
		December 31,			Comprehensive			September 30,
(dollars in thousands)		2010			Income			2011
Unrealized gains on
available-for-sale securities	$	31,962		$	26,058		$	58,020
Unrealized losses on securities for which other-
than-temporary-impairment has been recognized		(28,173	)		(836	)		(29,009	)
Unrealized gains (losses) on
held-to-maturity securities		5,667			(783	)		4,884
Unrecognized gain (loss) on cash flow hedges		846			(481	)		365
Defined benefit pension plans		(11,571	)		1,882			(9,689	)
Accumulated other comprehensive income (loss)	$	(1,269	)	$	25,840		$	24,571

		AOCI at			Other			AOCI at
		December 31,			Comprehensive			September 30,
(dollars in thousands)		2009			Income			2010
Unrealized gains on
available-for-sale securities	$	19,789		$	29,967		$	49,756
Unrealized losses on securities for which other-
than-temporary-impairment has been recognized		(27,501	)		(672	)		(28,173	)
Unrealized gains (losses) on
held-to-maturity securities		812			5,110			5,922
Unrecognized gain on cash flow hedges		187			845			1,032
Defined benefit pension plans		(13,653	)		932			(12,721	)
Accumulated other comprehensive income (loss)	$	(20,366	)	$	36,182		$	15,816