STOCKHOLDERS’ EQUITY

Total stockholders’ equity at December 31, 2018 was $1.90 billion, compared to $1.93 billion at December 31, 2017.

During the second quarter of 2018, the Company recorded $21.4 million in additional paid-in capital from the convertible notes issued. The $21.4 million included $21.9 million for the equity component of the convertible notes offset by $461 thousand in issuance costs from the convertible notes that was allocated to equity. The Company also recorded a tax adjustment on the equity component of the convertible notes reducing additional paid-in capital by $6.4 million.

On April 26, 2018, the Company’s Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $100.0 million in common stock. During the second and third quarter of 2018, the Company repurchased 5,565,696 shares of common stock totaling $100.0 million as part of the share repurchase program which was recorded as treasury stock. On September 20, 2018, the Company’s Board of Directors approved another approved another share repurchase program that authorizes the Company to repurchase an additional $50 million of its common stock. During the fourth quarter of 2018, the Company repurchased 3,436,757 shares of common stock totaling $50.0 million as part of the second share repurchase program which was recorded as treasury stock. Altogether the Company repurchased $150.0 million in stock which reduced the Company’s stockholders equity during the year ended December 31, 2018.

Warrants

The Company assumed certain warrants (related to the TARP Capital Purchase Plan) to purchase shares of the Company’s common stock. On May 20, 2015, the U.S. Treasury Department completed an auction to sell certain of its warrant positions. The Company submitted the winning bid to repurchase an outstanding warrant to purchase 350,767 shares of the Company’s common stock and repurchased this warrant for $1.2 million. As of December 31, 2018, there were no outstanding warrants to purchase the Company’s stock as the last remaining warrant held by the Treasury Department expired on December 12, 2018.

Dividends

The Company’s Board of Directors approved and the Company paid quarterly dividends of $0.13 per common share for the first and second quarter of 2018 and paid dividends of $0.14 per common shares for the third and fourth quarter of 2018. The Company paid aggregate dividends of $71.6 million to common stockholders in 2018. The Company’s Board of Directors paid quarterly dividends of $0.12 per common share for the first and second quarter of 2017 and $0.13 per common share for the third and fourth quarters of 2017. The Company paid aggregate dividends of $67.7 million to common stockholders during 2017.

Accumulated Other Comprehensive Loss

The following table presents the changes to accumulated other comprehensive loss for the years ended December 31, 2018, 2017, and 2016:



	December 31, 2018			December 31, 2017			December 31, 2016
	(Dollars in thousands)
Balance at beginning of period	$	(21,781	)	$	(14,657	)	$	(1,832	)
Unrealized losses on securities available for sale	(16,201		)	(5,796		)	(21,273		)
Reclassification adjustments for gains realized in income	—			(301		)	(950		)
Tax effect	4,996			2,570			9,398
Total other comprehensive loss	(11,205		)	(3,527		)	(12,825		)
Reclassification to retained earnings due to the tax reform	—			(3,597		)	—
Reclassification to retained earnings per ASU 2016-01	281			—			—
Balance at end of period	$	(32,705	)	$	(21,781	)	$	(14,657	)

As permitted by ASU 2018-02, the Company made the election to reclassify $3.6 million in disproportionate tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates as a result of the Tax Act to retained earnings for the year ended December 31, 2017. The Tax Act, which was enacted on December 22, 2017 and was effective staring January 1, 2018, permanently reduced the corporate tax rate from 35% to 21%. The disproportionate tax effect was a result of the re-evaluation of the Company’s deferred tax assets related to unrealized losses on investment securities available for sale at the lower tax rate.

During the first quarter of 2018, the Company adopted ASU 2016-01 “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” As a result of the adoption of ASU 2016-01, the Company no longer accounts for mutual funds as available for sale securities and accounts for these investments as equity investments with changes to fair value recorded through earnings. In accordance with ASU 2016-01, the Company reclassified $281 thousand in net unrealized losses included in other comprehensive income, net of taxes to retained earnings on January 1, 2018. For the twelve months ended December 31, 2018, there were no other reclassifications out of accumulated other comprehensive loss. For the twelve months ended December 31, 2017 and 2016, $301 thousand and $950 thousand, respectively, was reclassified out of accumulated other comprehensive loss to reflect the gain on sale and call of securities.