Comprehensive Income

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months 2019 and Third Quarter and Nine Months 2018 were as follows:



Third Quarter 2019
($ in thousands)	Gross			Tax		Net
Net income	$	71,178		15,028		56,150
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	34,392			7,224		27,168
Amounts reclassified into net income:
HTM securities	(3		)	(1	)	(2	)
Realized losses on disposals and OTTI of AFS securities	2,821			592		2,229
Total unrealized gains on investment securities	37,210			7,815		29,395
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	665			140		525
Total defined benefit pension and post-retirement plans	665			140		525
Other comprehensive income	37,875			7,955		29,920
Comprehensive income	$	109,053		22,983		86,070


Third Quarter 2018
($ in thousands)	Gross			Tax		Net
Net income	$	67,130		11,695		55,435
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(21,565		)	(4,529	)	(17,036	)
Amounts reclassified into net income:
HTM securities	(8		)	(2	)	(6	)
Realized losses on disposals and OTTI of AFS securities	10,839			2,276		8,563
Total unrealized losses on investment securities	(10,734		)	(2,255	)	(8,479	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	532			112		420
Total defined benefit pension and post-retirement plans	532			112		420
Other comprehensive loss	(10,202		)	(2,143	)	(8,059	)
Comprehensive income	$	56,928		9,552		47,376



Nine Months 2019
($ in thousands)	Gross			Tax		Net
Net income	$	235,097		45,333		189,764
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	220,864			46,381		174,483
Amounts reclassified into net income:
HTM securities	(33		)	(7	)	(26	)
Realized losses on disposals and OTTI of AFS securities	444			93		351
Total unrealized gains on investment securities	221,275			46,467		174,808
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,993			419		1,574
Total defined benefit pension and post-retirement plans	1,993			419		1,574
Other comprehensive income	223,268			46,886		176,382
Comprehensive income	$	458,365		92,219		366,146


Nine Months 2018
($ in thousands)	Gross			Tax		Net
Net income	$	159,586		26,407		133,179
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(130,873		)	(27,484	)	(103,389	)
Amounts reclassified into net income:
HTM securities	(28		)	(6	)	(22	)
Realized losses on disposals and OTTI of AFS securities	18,258			3,834		14,424
Total unrealized losses on investment securities	(112,643		)	(23,656	)	(88,987	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,595			335		1,260
Total defined benefit pension and post-retirement plans	1,595			335		1,260
Other comprehensive loss	(111,048		)	(23,321	)	(87,727	)
Comprehensive income	$	48,538		3,086		45,452

The balances of, and changes in, each component of AOCI (net of taxes) as of September 30, 2019 were as follows:



September 30, 2019								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, 2018	$	(71	)	71		1,888	1,888	(79,844	)	(77,956	)
OCI before reclassifications	—			—		174,483	174,483	—		174,483
Amounts reclassified from AOCI	—			(26	)	351	325	1,574		1,899
Net current period OCI	—			(26	)	174,834	174,808	1,574		176,382
Balance, September 30, 2019	$	(71	)	45		176,722	176,696	(78,270	)	98,426

The reclassifications out of AOCI were as follows:



	Quarter ended September 30,					Nine Months ended September 30,				Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2019			2018		2019		2018
HTM related
Unrealized (gains) losses on HTM disposals	$	(3	)	11		(12	)	5		Net realized and unrealized (losses) gains
Amortization of net unrealized gains on HTM securities	—			(19	)	(21	)	(33	)	Net investment income earned
	(3		)	(8	)	(33	)	(28	)	Income before federal income tax
	1			2		7		6		Total federal income tax expense
	(2		)	(6	)	(26	)	(22	)	Net income
Realized losses on AFS and OTTI
Realized losses on AFS disposals and OTTI	2,821			10,839		444		18,258		Net realized and unrealized (losses) gains
	2,821			10,839		444		18,258		Income before federal income tax
	(592		)	(2,276	)	(93	)	(3,834	)	Total federal income tax expense
	2,229			8,563		351		14,424		Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	146			112		436		337		Loss and loss expense incurred
	519			420		1,557		1,258		Other insurance expenses
Total defined benefit pension and post-retirement life	665			532		1,993		1,595		Income before federal income tax
	(140		)	(112	)	(419	)	(335	)	Total federal income tax expense
	525			420		1,574		1,260		Net income

Total reclassifications for the period	$	2,752		8,977		1,899		15,662		Net income