STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2020

STOCKHOLDERS’ EQUITY

Warrants

As of December 31, 2020 and 2019, there were no warrants outstanding.

On November 1, 2010, we issued warrants for the purchase of up to 1,395,000 shares of non-voting common stock at an exercise price of $11.00 per share, subject to certain adjustments to the number of shares underlying the warrants as well as certain adjustments to the warrant exercise price as applicable. Under the terms of the respective warrants, the warrants were exercisable for voting common stock in lieu of non-voting common stock following a transfer of the warrants under certain circumstances described in the terms of the warrants.

During the year ended December 31, 2018, the remaining 260,000 warrants that were outstanding at December 31, 2017 were exercised, resulting in the issuance of 145,702 shares of our non-voting common stock. The exercise prices ranged from $8.38 to $8.44 per share. During the year ended December 31, 2018, it was determined that an aggregate of 176,488 shares of non-voting common stock that was issued upon exercise of warrants during the year ended December 31, 2017 was eligible for the issuance of voting common stock. As a result, the 176,488 shares of our non-voting common stock were canceled and 176,488 shares of our voting common stock were issued in lieu thereof.

Preferred Stock

We are authorized to issue 50,000,000 shares of preferred stock with par value of $0.01 per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference but generally have no voting rights. All of our outstanding shares of preferred stock have a $1,000 per share liquidation preference. The following table presents our total outstanding preferred stock as of dates indicated:


	December 31,
	2020					2019
($ in thousands)	Shares Authorized and Outstanding	Liquidation Preference		Carrying Value		Shares Authorized and Outstanding	Liquidation Preference		Carrying Value

Series D 7.375% non-cumulative perpetual	93,270	$	93,270	$	89,922	96,629	$	96,629	$	93,162
Series E 7.00% non-cumulative perpetual	98,702	98,702		94,956		100,477	100,477		96,663
Total	191,972	$	191,972	$	184,878	197,106	$	197,106	$	189,825

Series D Preferred Stock

During the year ended December 31, 2020, we repurchased depositary shares (Series D Depositary Shares), each representing a 1/40th interest in a share of Series D Preferred Stock, liquidation amount of $1,000 per share of Series D Preferred Stock, resulting in the repurchase of 134,410 outstanding Series D Depositary Shares and the related retirement of 3,360 outstanding shares of Series D Preferred Stock. During the year ended December 31, 2020, we paid $2.7 million to repurchase Series D Preferred Stock, resulting in consideration paid of $541 thousand less than the repurchased shares' carrying value. When the consideration paid to repurchase shares exceeds the repurchased shares' carrying value, the difference reduces net income allocated to common stockholders. When the consideration paid to repurchase shares is less than the repurchased shares' carrying value, the difference increases net income allocated to common stockholders.

On August 23, 2019, the Company completed a tender offer for Series D Depositary Shares, resulting in the repurchase of 734,823 outstanding Series D Depository Shares and the related retirement of 18,371 outstanding shares of Series D Preferred Stock. During the year ended December 31, 2019, we paid $19.4 million to repurchase Series D Preferred Stock, resulting in consideration paid of $1.7 million greater than the repurchased shares' carrying value.

Series E Preferred Stock

During the year ended December 31, 2020, we repurchased depositary shares (Series E Depositary Shares), each representing a 1/40th interest in a share of Series E Preferred Stock, liquidation amount of $1,000 per share of Series E Preferred Stock, resulting in the repurchase of 70,967 outstanding Series E Depositary Shares and the related retirement of 1,774 outstanding shares of Series E Preferred Stock. During the year ended December 31, 2020, we paid $1.7 million to repurchase Series E Preferred Stock, resulting in consideration paid of $27 thousand less than the repurchased shares' carrying value.

On August 23, 2019, the Company completed a tender offer for Series E Depositary Shares, resulting in the repurchase of 980,928 outstanding Series E Depository Shares and the related retirement of 24,523 outstanding shares of Series E Preferred Stock. During the year ended December 31, 2019, we paid $26.6 million to repurchase Series E Preferred Stock, resulting in consideration paid of $3.4 million greater than the repurchased shares' carrying value.

Series C Preferred Stock

On September 17, 2018, we completed the redemption of all 40,250 outstanding shares of our 8.00% Series C Non-Cumulative Perpetual Preferred Stock (Series C Preferred Stock), which resulted in the simultaneous redemption of all 1,610,000 of the outstanding related depositary shares (Series C Depository Shares), each representing a 1/40th interest in a share of Series C Preferred Stock, at a redemption price of the liquidation amount of $1,000 per share of Series C Preferred Stock (equivalent to $25 per Series C Depository Share). The redemption price represented an aggregate amount of $40.3 million and did not accrue interest on or after the regularly scheduled dividend payment date of September 15, 2018. Deferred stock issuance costs of $2.3 million originally recorded as a reduction to preferred stock upon issuance of the Series C Preferred Stock were reclassified to retained earnings and resulted in a reduction to net income allocated to common stockholders.

Share Repurchase Program

On February 10, 2020, we announced that our Board of Directors authorized the repurchase of up to $45 million of our common stock. This repurchase authorization expired on February 10, 2021. During the year ended December 31, 2020, we repurchased 827,584 shares of common stock at a weighted average price of $14.50 per share and an aggregate amount of $12.0 million. Purchases were authorized to be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions, or by other means as determined by our management and in accordance with the regulations of the Securities and Exchange Commission. The timing of purchases and the number of shares repurchased under the program depended on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions.

Change in Accumulated Other Comprehensive Income (Loss)

Our AOCI includes unrealized gain (loss) on securities available-for-sale. Changes to AOCI are presented net of the tax effect as a component of stockholders' equity. Reclassifications from AOCI occur when a security is sold, called or matures and are recorded on the consolidated statements of operations either as a gain or loss. The following table presents changes to AOCI for the periods indicated:


	Year Ended December 31,
($ in thousands)	2020		2019		2018
Unrealized (loss) gain on securities available-for -sale
Balance at beginning of period	$	(11,900)	$	(24,117)	$	5,227
Unrealized gain (loss) arising during the period	29,867		11,734		(40,476)


Reclassification adjustment from other comprehensive income	(2,011)		4,852		(5,532)
Amounts reclassified from accumulated other comprehensive income (loss) to net income	—		731		3,252
Tax effect of current period changes	(8,210)		(5,100)		12,916
Total changes, net of taxes	19,646		12,217		(29,840)
Reclassification of stranded tax effects to retained earnings	—		—		496
Balance at end of period	$	7,746	$	(11,900)	$	(24,117)