Stockholders’ Equity

Total equity was $

1.9

billion as of

June 30, 2017,

an increase of

$69.2

million, from

$1.8

billion as of

December 31, 2016,

primarily due to net income of

$100.4

million partially offset by common stock cash dividends of

$33.5

million and shares withheld related to net share settlement of RSUs of

$5.1

million.

The U.S. Treasury received warrants to purchase common stock of

1,846,374

shares at an exercise price of

$20.96

as part of the Company

’s participation in the U.S. Treasury Troubled Asset Relief Program Capital Purchase Program. As a result of the anti-dilution adjustments under the warrant, the exercise price at

December 31, 2016

has been adjusted to

$20.65

and the number of warrants increased by

1.5%.

June 30, 2017

and

December 31, 2016,

943,345

warrants remain exercisable.

Activity

in accumulated other comprehensive income, net of tax, and reclassification out of accumulated other comprehensive income for the

three

months and

six

months ended

June 30, 2017,

and

June 30, 2016,

was as follows:

	Three months ended June 30, 2017									Three months ended June 30, 2016
	Pre-tax			Tax expense/ (benefit)			Net-of-tax			Pre-tax			Tax expense/ (benefit)			Net-of-tax
Beginning balance, loss, net of tax	(In thousands)
Securities available-for-sale							$	(1,771	)							$	5,042
Cash flow hedge derivatives								(1,871	)								(6,115	)
Total							$	(3,642	)							$	(1,073	)
Net unrealized (losses)/gains arising during the period
Securities available-for-sale	$	4,786		$	2,012		$	2,774		$	7,688		$	3,232		$	4,456
Cash flow hedge derivatives		(949	)		(399	)		(550	)		(2,212	)		(930	)		(1,282	)
Total		3,837			1,613			2,224			5,476			2,302		$	3,174
Reclassification adjustment for net losses in net income
Securities available-for-sale		(3	)		(1	)		(2	)		(1,655	)		(696	)		(959	)
Cash flow hedge derivatives		-			-			-			-			-			-
Total		(3	)		(1	)		(2	)		(1,655	)		(696	)		(959	)
Total other comprehensive (loss)/income
Securities available-for-sale		4,783			2,011			2,772			6,033			2,536			3,497
Cash flow hedge derivatives		(949	)		(399	)		(550	)		(2,212	)		(930	)		(1,282	)
Total	$	3,834		$	1,612		$	2,222		$	3,821		$	1,606		$	2,215
Ending balance, (loss)/gain, net of tax
Securities available-for-sale							$	1,001								$	8,539
Cash flow hedge derivatives								(2,421	)								(7,397	)
Total							$	(1,420	)							$	1,142

	Six months ended June 30, 2017									Six months ended June 30, 2016
	Pre-tax			Tax expense/ (benefit)			Net-of-tax			Pre-tax			Tax expense/ (benefit)			Net-of-tax
Beginning balance, loss, net of tax	(In thousands)
Securities available-for sale							$	(1,545	)							$	(5,431	)
Cash flow hedge derivatives								(2,170	)								(2,995	)
Total							$	(3,715	)							$	(8,426	)
Net unrealized gains/(losses) arising during the period
Securities available-for sale	$	3,930		$	1,652		$	2,278		$	25,552		$	10,742		$	14,810
Cash flow hedge derivatives		(433	)		(182	)		(251	)		(7,595	)		(3,193	)		(4,402	)
Total		3,497			1,470			2,027			17,957			7,549		$	10,408
Reclassification adjustment for net (gains)/losses in net income
Securities available-for sale		463			195			268			(1,449	)		(609	)		(840	)
Cash flow hedge derivatives		-			-			-			-			-			-
Total		463			195			268			(1,449	)		(609	)		(840	)
Total other comprehensive income/(loss)
Securities available-for sale		4,393			1,847			2,546			24,103			10,133			13,970
Cash flow hedge derivatives		(433	)		(182	)		(251	)		(7,595	)		(3,193	)		(4,402	)
Total	$	3,960		$	1,665		$	2,295		$	16,508		$	6,940		$	9,568
Ending balance, gain/(loss), net of tax
Securities available-for sale							$	1,001								$	8,539
Cash flow hedge derivatives								(2,421	)								(7,397	)
Total							$	(1,420	)							$	1,142