Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months 2014 and 2013 are as follows:



Second Quarter 2014
($ in thousands)	Gross			Tax		Net
Net income	$	39,521		10,180		29,341
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	45,122			15,793		29,329
Amounts reclassified into net income:
HTM securities	(221		)	(77	)	(144	)
Non-credit OTTI	469			164		305
Realized gains on AFS securities	(5,008		)	(1,753	)	(3,255	)
Net unrealized gains	40,362			14,127		26,235
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	381			133		248
Defined benefit pension and post-retirement plans	381			133		248
Other comprehensive income	40,743			14,260		26,483
Comprehensive income	$	80,264		24,440		55,824



Second Quarter 2013
($ in thousands)	Gross			Tax		Net
Net income	$	36,201		9,079		27,122
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(91,314		)	(31,961	)	(59,353	)
Non-credit OTTI recognized in OCI	47			16		31
Amounts reclassified into net income:
HTM securities	(614		)	(215	)	(399	)
Non-credit OTTI	6			3		3
Realized gains on AFS securities	(5,288		)	(1,850	)	(3,438	)
Net unrealized losses	(97,163		)	(34,007	)	(63,156	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	789			276		513
Defined benefit pension and post-retirement plans	789			276		513
Other comprehensive loss	(96,374		)	(33,731	)	(62,643	)
Comprehensive loss	$	(60,173	)	(24,652	)	(35,521	)



Six Months 2014
($ in thousands)	Gross			Tax		Net
Net income	$	64,605		17,290		47,315
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	78,086			27,331		50,755
Amounts reclassified into net income:
HTM securities	(677		)	(237	)	(440	)
Non-credit OTTI	469			164		305
Realized gains on AFS securities	(12,237		)	(4,283	)	(7,954	)
Net unrealized gains	65,641			22,975		42,666
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	761			266		495
Defined benefit pension and post-retirement plans	761			266		495
Other comprehensive income	66,402			23,241		43,161
Comprehensive income	$	131,007		40,531		90,476



Six Months 2013
($ in thousands)	Gross			Tax		Net
Net income	$	63,534		15,104		48,430
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(87,630		)	(30,671	)	(56,959	)
Non-credit OTTI recognized in OCI	77			27		50
Amounts reclassified into net income:
HTM securities	(1,331		)	(466	)	(865	)
Non-credit OTTI	13			5		8
Realized gains on AFS securities	(11,264		)	(3,942	)	(7,322	)
Net unrealized losses	(100,135		)	(35,047	)	(65,088	)
Defined benefit pension and post-retirement plans:
Net actuarial gains	44,000			15,400		28,600
Amounts reclassified into net income:
Net actuarial loss	2,629			920		1,709
Prior service cost	10			4		6
Curtailment expense	16			5		11
Defined benefit pension and post-retirement plans	46,655			16,329		30,326
Other comprehensive loss	(53,480		)	(18,718	)	(34,762	)
Comprehensive income	$	10,054		(3,614	)	13,668

The balances of, and changes in, each component of AOCI (net of taxes) as of June 30, 2014 are as follows:



June 30, 2014	Net Unrealized (Loss) Gain on Investment Securities
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal		Defined Benefit Pension and Post-Retirement Plans		Total AOCI
Balance, December 31, 2013	$	(1,599	)	1,467		51,635		51,503		(26,652	)	24,851
OCI before reclassifications	—			—		50,755		50,755		—		50,755
Amounts reclassified from AOCI	305			(440	)	(7,954	)	(8,089	)	495		(7,594	)
Net current period OCI	305			(440	)	42,801		42,666		495		43,161
Balance, June 30, 2014	$	(1,294	)	1,027		94,436		94,169		(26,157	)	68,012

The reclassifications out of AOCI are as follows:



	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2014		2013		2014		2013		Affected Line Item in the Unaudited Consolidated Statement of Income
OTTI related
Amortization of non-credit OTTI losses on HTM securities	—		6		—		13		Net investment income earned
Realized loss on disposal of non-credit OTTI securities	469		—		469		—		Net realized gains
	469		6		469		13		Income from continuing operations, before federal income tax
	(164	)	(3	)	(164	)	(5	)	Total federal income tax expense
	305		3		305		8		Net income
HTM related
Unrealized losses (gains) on HTM disposals	51		(70	)	75		(151	)	Net realized gains
Amortization of net unrealized gains on HTM securities	(272	)	(544	)	(752	)	(1,180	)	Net investment income earned
	(221	)	(614	)	(677	)	(1,331	)	Income from continuing operations, before federal income tax
	77		215		237		466		Total federal income tax expense
	(144	)	(399	)	(440	)	(865	)	Net income
Realized gains and losses on AFS and OTTI
Realized gains on AFS disposals and OTTI	(5,008	)	(5,288	)	(12,237	)	(11,264	)	Net realized gains
	(5,008	)	(5,288	)	(12,237	)	(11,264	)	Income from continuing operations, before federal income tax
	1,753		1,850		4,283		3,942		Total federal income tax expense
	(3,255	)	(3,438	)	(7,954	)	(7,322	)	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	88		158		175		558		Loss and loss expense incurred
	293		631		586		2,071		Policy acquisition costs
	381		789		761		2,629		Income from continuing operations, before federal income tax

Prior service cost	—		—		—		7		Loss and loss adjustment expenses
	—		—		—		3		Policy acquisition costs
	—		—		—		10		Income from continuing operations, before federal income tax

Curtailment expense	—		—		—		16		Policy acquisition costs
	—		—		—		16		Income from continuing operations, before federal income tax

Total defined benefit pension and post-retirement life	381		789		761		2,655		Income from continuing operations, before federal income tax
	(133	)	(276	)	(266	)	(929	)	Total federal income tax expense
	248		513		495		1,726		Net income

Total reclassifications for the period	(2,846	)	(3,321	)	(7,594	)	(6,453	)	Net income