Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months 2018 and 2017 are as follows:



Second Quarter 2018
($ in thousands)	Gross			Tax		Net
Net income	$	72,525		13,706		58,819
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during period	(23,993		)	(5,038	)	(18,955	)
Amounts reclassified into net income:
HTM securities	(8		)	(2	)	(6	)
Realized losses on disposals of AFS securities	2,870			603		2,267
Total unrealized losses on investment securities	(21,131		)	(4,437	)	(16,694	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	531			111		420
Total defined benefit pension and post-retirement plans	531			111		420
Other comprehensive loss	(20,600		)	(4,326	)	(16,274	)
Comprehensive income	$	51,925		9,380		42,545


Second Quarter 2017
($ in thousands)	Gross			Tax		Net
Net income	$	58,929		17,503		41,426
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during period	35,887			12,561		23,326
Non-credit portion of OTTI recognized in OCI	6			2		4
Amounts reclassified into net income:
HTM securities	(43		)	(15	)	(28	)
Realized gains on disposals of AFS securities	(1,885		)	(660	)	(1,225	)
Total unrealized gains on investment securities	33,965			11,888		22,077
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	508			178		330
Total defined benefit pension and post-retirement plans	508			178		330
Other comprehensive income	34,473			12,066		22,407
Comprehensive income	$	93,402		29,569		63,833



Six Months 2018
($ in thousands)	Gross			Tax		Net
Net income	$	92,456		14,712		77,744
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during period	(109,308		)	(22,955	)	(86,353	)
Amounts reclassified into net income:
HTM securities	(20		)	(4	)	(16	)
Realized losses on disposals of AFS securities	7,419			1,558		5,861
Total unrealized losses on investment securities	(101,909		)	(21,401	)	(80,508	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,063			223		840
Total defined benefit pension and post-retirement plans	1,063			223		840
Other comprehensive loss	(100,846		)	(21,178	)	(79,668	)
Comprehensive loss	$	(8,390	)	(6,466	)	(1,924	)


Six Months 2017
($ in thousands)	Gross			Tax		Net
Net income	$	126,503		34,637		91,866
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during period	61,672			21,585		40,087
Non-credit portion of OTTI recognized in OCI	6			2		4
Amounts reclassified into net income:
HTM securities	(92		)	(32	)	(60	)
Realized gains on disposals of AFS securities	(375		)	(131	)	(244	)
Total unrealized gains on investment securities	61,211			21,424		39,787
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,015			355		660
Total defined benefit pension and post-retirement plans	1,015			355		660
Other comprehensive income	62,226			21,779		40,447
Comprehensive income	$	188,729		56,416		132,313

The balances of, and changes in, each component of AOCI (net of taxes) as of June 30, 2018 were as follows:



June 30, 2018										Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized Gains (Losses) on Investment Securities											Total AOCI
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal				Total AOCI
Balance, December 31, 2017	$	(59	)	(14	)	80,648		80,575		(60,405	)	20,170
Cumulative effect adjustments	(12		)	(2	)	(12,792	)	(12,806	)	(12,213	)	(25,019	)
Balance, December 31, 2017 as adjusted	(71		)	(16	)	67,856		67,769		(72,618	)	(4,849	)
OCI before reclassifications	—			—		(86,353	)	(86,353	)	—		(86,353	)
Amounts reclassified from AOCI	—			(16	)	5,861		5,845		840		6,685
Net current period OCI	—			(16	)	(80,492	)	(80,508	)	840		(79,668	)
Balance, June 30, 2018	$	(71	)	(32	)	(12,636	)	(12,739	)	(71,778	)	(84,517	)

The reclassifications out of AOCI were as follows:



	Quarter ended June 30,					Six Months ended June 30,				Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2018			2017		2018		2017
HTM related
Unrealized losses on HTM disposals	$	(7	)	17		(6	)	30		Net realized and unrealized (losses) gains
Amortization of net unrealized gains on HTM securities	(1		)	(60	)	(14	)	(122	)	Net investment income earned
	(8		)	(43	)	(20	)	(92	)	Income before federal income tax
	2			15		4		32		Total federal income tax expense
	(6		)	(28	)	(16	)	(60	)	Net income
Realized losses (gains) on AFS and OTTI
Realized losses (gains) on AFS disposals and OTTI	2,870			(1,885	)	7,419		(375	)	Net realized and unrealized (losses) gains
	2,870			(1,885	)	7,419		(375	)	Income before federal income tax
	(603		)	660		(1,558	)	131		Total federal income tax expense
	2,267			(1,225	)	5,861		(244	)	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	113			111		225		221		Loss and loss expense incurred
	418			397		838		794		Other insurance expenses
Total defined benefit pension and post-retirement life	531			508		1,063		1,015		Income before federal income tax
	(111		)	(178	)	(223	)	(355	)	Total federal income tax expense
	420			330		840		660		Net income

Total reclassifications for the period	$	2,681		(923	)	6,685		356		Net income