Comprehensive Income

6 Months Ended

Jun. 30, 2020

The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months 2020 and 2019 were as follows:



Second Quarter 2020
($ in thousands)	Gross			Tax		Net
Net income	$	42,693		8,510		34,183
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	188,768			39,641		149,127
Non-credit portion of OTTI recognized in OCI	37,479			7,871		29,608
Amounts reclassified into net income:
HTM securities	(31		)	(6	)	(25	)
Realized gains on disposals and intent-to-sell OTTI on AFS securities	(1,686		)	(354	)	(1,332	)
Credit loss benefit recognized in OTTI	(4,924		)	(1,034	)	(3,890	)
Total unrealized gains on investment securities	219,606			46,118		173,488
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	753			158		595
Total defined benefit pension and post-retirement plans	753			158		595
Other comprehensive income	220,359			46,276		174,083
Comprehensive income	$	263,052		54,786		208,266


Second Quarter 2019
($ in thousands)	Gross			Tax		Net
Net income	$	90,225		17,959		72,266
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	83,546			17,544		66,002
Amounts reclassified into net income:
HTM securities	(21		)	(4	)	(17	)
Realized gains on disposals and OTTI of AFS securities	(1,300		)	(273	)	(1,027	)
Total unrealized gains on investment securities	82,225			17,267		64,958
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	664			140		524
Total defined benefit pension and post-retirement plans	664			140		524
Other comprehensive income	82,889			17,407		65,482
Comprehensive income	$	173,114		35,366		137,748



Six Months 2020
($ in thousands)	Gross			Tax		Net
Net income	$	58,690		9,271		49,419
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	94,787			19,905		74,882
Non-credit portion of OTTI recognized in OCI	(27,911		)	(5,861	)	(22,050	)
Amounts reclassified into net income:
HTM securities	(6		)	(1	)	(5	)
Realized losses on disposals and intent-to-sell OTTI on AFS securities	9,641			2,025		7,616
Credit loss expense recognized in OTTI	10,863			2,281		8,582
Total unrealized gains on investment securities	87,374			18,349		69,025
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,507			316		1,191
Total defined benefit pension and post-retirement plans	1,507			316		1,191
Other comprehensive income	88,881			18,665		70,216
Comprehensive income	$	147,571		27,936		119,635


Six Months 2019
($ in thousands)	Gross			Tax		Net
Net income	$	163,919		30,305		133,614
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	186,472			39,157		147,315
Amounts reclassified into net income:
HTM securities	(30		)	(6	)	(24	)
Realized gains on disposals and OTTI of AFS securities	(2,377		)	(499	)	(1,878	)
Total unrealized gains on investment securities	184,065			38,652		145,413
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,328			279		1,049
Total defined benefit pension and post-retirement plans	1,328			279		1,049
Other comprehensive income	185,393			38,931		146,462
Comprehensive income	$	349,312		69,236		280,076

The balances and changes in each component of Accumulated other comprehensive income ("AOCI") (net of taxes) as of June 30, 2020, were as follows:



June 30, 2020								Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized Gains (Losses) on Investment Securities									Total AOCI
($ in thousands)	OTTI Related¹			HTM Related		All Other	Investments Subtotal			Total AOCI
Balance, December 31, 2019	$	(71	)	25		170,439	170,393	(88,643	)	81,750
OCI before reclassifications	(22,050		)	—		74,882	52,832	—		52,832
Amounts reclassified from AOCI	8,582			(5	)	7,616	16,193	1,191		17,384
Net current period OCI	(13,468		)	(5	)	82,498	69,025	1,191		70,216
Balance, June 30, 2020	$	(13,539	)	20		252,937	239,418	(87,452	)	151,966

¹Represents unrealized gains and losses on AFS securities with credit-related OTTI recognized in earnings.

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)	2020			2019		2020		2019
HTM related
Unrealized (gains) losses on HTM disposals	$	—		(9	)	1		(9	)	Net realized and unrealized gains (losses)
Amortization of net unrealized gains on HTM securities	(31		)	(12	)	(7	)	(21	)	Net investment income earned
	(31		)	(21	)	(6	)	(30	)	Income before federal income tax
	6			4		1		6		Total federal income tax expense
	(25		)	(17	)	(5	)	(24	)	Net income
Net realized (gains) losses on disposals and intent-to-sell OTTI
Net realized (gains) losses on disposals and intent-to-sell OTTI	(1,686		)	(1,300	)	9,641		(2,377	)	Net realized and unrealized gains (losses)
	(1,686		)	(1,300	)	9,641		(2,377	)	Income before federal income tax
	354			273		(2,025	)	499		Total federal income tax expense
	(1,332		)	(1,027	)	7,616		(1,878	)	Net income
OTTI related
Credit loss (benefit) expense recognized in OTTI	(4,924		)	—		10,863		—		Net realized and unrealized gains (losses)
	(4,924		)	—		10,863		—		Income before federal income tax
	1,034			—		(2,281	)	—		Total federal income tax expense
	(3,890		)	—		8,582		—		Net income

Defined benefit pension and post-retirement life plans
Net actuarial loss	162			145		324		290		Loss and loss expense incurred
	591			519		1,183		1,038		Other insurance expenses
Total defined benefit pension and post-retirement life	753			664		1,507		1,328		Income before federal income tax
	(158		)	(140	)	(316	)	(279	)	Total federal income tax expense
	595			524		1,191		1,049		Net income

Total reclassifications for the period	$	(4,652	)	(520	)	17,384		(853	)	Net income