XML 19 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Equity and EPS
 9 Months Ended
Sep. 30, 2020
Equity and Earnings Per Share [Abstract]  
Stockholders' Equity and EPS Stockholders' Equity and EPS
Accumulated Other Comprehensive Income
The following table summarizes the items reclassified out of accumulated other comprehensive income into the Consolidated Statements of Income (unaudited) for the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Dollars in thousands)Income Statement Location2020201920202019
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income
Gains on investment securities, net
$— $— $(61,165)$3,905 
Related tax expense (benefit)Income tax expense— — 16,953 (1,087)
Reclassification adjustment for (gains) losses on cash flow hedges included in net income
Net interest income
(16,004)2,713 (33,924)3,224 
Related tax expense (benefit)Income tax expense4,436 (755)9,403 (897)
Total reclassification adjustment for (gains) losses included in net income, net of tax$(11,568)$1,958 $(68,733)$5,145 
The table below summarizes the activity relating to net gains and losses on our cash flow hedges included in accumulated other comprehensive income for the three and nine months ended September 30, 2020 and 2019. Refer to Note 11 — “Derivative Financial Instruments” of the “Notes to Interim Consolidated Financial Statements (unaudited)” under Part I, Item 1 of this report for additional information regarding the termination of our cash flow hedges during the quarter ended March 31, 2020. Over the next 12 months, we expect that approximately $63.5 million in accumulated other comprehensive income ("AOCI") at September 30, 2020, related to unrealized gains will be reclassified out of AOCI and recognized in net income.
 Three months ended September 30,Nine months ended September 30,
(Dollars in thousands)2020201920202019
Balance, beginning of period, net of tax
$152,556 $13,828 $(2,130)$— 
Net increase in fair value, net of tax— 7,077 167,639 20,536 
Net realized (gain) loss reclassified to net income, net of tax(11,568)1,958 (24,521)2,327 
Balance, end of period, net of tax
$140,988 $22,863 $140,988 $22,863 
EPS

Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issuable for stock options and restricted stock unit awards outstanding under our 2006 Equity Incentive Plan and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive.
The following is a reconciliation of basic EPS to diluted EPS for the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Dollars and shares in thousands, except per share amounts)2020201920202019
Numerator:
Net income available to common stockholders$441,713 $267,281 $802,901 $874,000 
Denominator:
Weighted average common shares outstanding—basic 51,773 51,545 51,640 52,025 
Weighted average effect of dilutive securities:
Stock options and ESPP141 203 147 238 
Restricted stock units and awards232 110 163 168 
Weighted average common shares outstanding—diluted52,146 51,858 51,950 52,431 
Earnings per common share:
Basic$8.53 $5.19 $15.55 $16.80 
Diluted 8.47 5.15 15.46 16.67 

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation due to the antidilutive effect for the three and nine months ended September 30, 2020 and 2019:
 Three months ended September 30,Nine months ended September 30,
(Shares in thousands)2020201920202019
Stock options319 213 269 154 
Restricted stock units55 432 83 294 
Total374 645 352 448 
Stock Repurchase Program
On October 24, 2019, our Board of Directors authorized a stock repurchase program that enables us to repurchase up to $350 million of our outstanding common stock. For the three months ended September 30, 2020, we did not repurchase any shares of our outstanding common stock under the stock repurchase program as the program remained on pause during the quarter end period. For the nine months ended September 30, 2020, we had repurchased 244,223 shares of our outstanding common stock for $60.0 million under the stock repurchase program. The program expired on October 29, 2020.
Preferred Stock
On December 9, 2019, the Company issued depositary shares representing an ownership interest in 350,000 shares of Series A Preferred Stock with $0.001 par value and liquidation preference of $1,000 per share, or $25 per depositary share. All preferred shares were issued in the form of depositary shares, with each depositary share representing a 1/40th ownership interest in a share of the preferred stock. The Series A Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company. Dividends are approved by the Board of Directors and, if declared, are payable quarterly, in arrears, at a rate per annum equal to 5.25 percent. The Series A Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after February 15, 2025. Prior to February 15, 2025, the Series A Preferred Stock is redeemable at the Company’s option, in whole and not in part, following any change in laws or regulations that would not allow the Company to treat the full liquidation value of the Series A Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Board of Governors of the Federal Reserve System ("the Federal Reserve"). The redemption amount is computed at the per share liquidation preference plus any declared but unpaid dividends. Redemptions are subject to certain regulatory provisions, including approval of the Federal Reserve.
As of September 30, 2020, there were 350,000 shares issued and outstanding of Series A Preferred Shares, which had a carrying value of $340.1 million and liquidation preference of $350.0 million.
The following table summarizes our preferred stock at September 30, 2020:
SeriesDescriptionAmount outstanding (in millions)Carrying value
(in millions)		Shares issued and outstandingPar ValueOwnership interest per depository shareLiquidation preference per depository share2020 dividends paid per depository share
Series A5.250% Fixed-Rate Non-Cumulative Perpetual Preferred Stock$350 $340.1 350,000$0.001 1/40th$25 $0.90