| STOCKHOLDERS' EQUITY |
12. STOCKHOLDERS’ EQUITY
Series A Preferred Stock
On June 9, 2020, the Company issued and sold 6,900,000 depositary shares, each representing a 1/400th ownership interest in a share of its Series A preferred stock, with a liquidation preference of $10,000 per share of Series A preferred stock (equivalent to $25 per depositary share), including 900,000 depositary shares pursuant to the exercise in full by the underwriters of their option to purchase additional depositary shares. The total net proceeds to the Company were approximately $166.4 million, after deducting the underwriting discount and other offering expenses payable by the Company. The Company is using the net proceeds of the offering for general corporate purposes in the ordinary course of its business, such as the repayment of debt, loan funding, acquisitions, additions to working capital, capital expenditures and investments in the Company’s subsidiaries.
Accumulated Other Comprehensive Income (Loss)
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2020 is summarized as follows, net of tax (dollars in thousands):
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Unrealized |
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Gains |
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(Losses) for |
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Unrealized |
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AFS |
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Unrealized |
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Gains (Losses) |
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Securities |
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Change in Fair |
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Gains |
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on AFS |
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Transferred |
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Value of Cash |
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(Losses) |
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Securities |
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to HTM |
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Flow Hedges |
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on BOLI |
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Total |
Balance - December 31, 2019 |
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$ |
37,877 |
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$ |
75 |
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$ |
(782) |
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$ |
(1,595) |
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$ |
35,575 |
Other comprehensive income (loss): |
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Other comprehensive income (loss) before reclassification |
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45,996 |
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— |
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(699) |
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(2,098) |
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43,199 |
Amounts reclassified from AOCI into earnings |
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(9,712) |
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(20) |
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1,481 |
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|
492 |
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(7,759) |
Net current period other comprehensive income (loss) |
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36,284 |
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(20) |
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|
782 |
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(1,606) |
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|
35,440 |
Balance - December 31, 2020 |
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$ |
74,161 |
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$ |
55 |
|
$ |
— |
|
$ |
(3,201) |
|
$ |
71,015 |
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2019 is summarized as follows, net of tax (dollars in thousands):
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Unrealized |
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Gains |
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(Losses) for |
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Unrealized |
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AFS |
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Unrealized |
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|
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Gains (Losses) |
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Securities |
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Change in Fair |
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Gains |
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on AFS |
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Transferred |
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Value of Cash |
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(Losses) on |
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Securities |
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to HTM |
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Flow Hedges |
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BOLI |
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Total |
Balance - December 31, 2018 |
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$ |
(5,949) |
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$ |
95 |
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$ |
(3,393) |
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$ |
(1,026) |
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$ |
(10,273) |
Other comprehensive income (loss): |
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Other comprehensive income (loss) before reclassification |
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49,890 |
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— |
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(5,103) |
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(646) |
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|
44,141 |
Amounts reclassified from AOCI into earnings |
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(6,064) |
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(20) |
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7,714 |
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|
77 |
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|
1,707 |
Net current period other comprehensive income (loss) |
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43,826 |
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(20) |
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2,611 |
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(569) |
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|
45,848 |
Balance - December 31, 2019 |
|
$ |
37,877 |
|
$ |
75 |
|
$ |
(782) |
|
$ |
(1,595) |
|
$ |
35,575 |
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2018 is summarized as follows, net of tax (dollars in thousands):
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Unrealized |
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Gains |
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(Losses) for |
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Unrealized |
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AFS |
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Unrealized |
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|
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Gains (Losses) |
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Securities |
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Change in Fair |
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Gains |
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on AFS |
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Transferred |
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Value of Cash |
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(Losses) |
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Securities |
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to HTM |
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Flow Hedges |
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on BOLI |
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Total |
Balance - December 31, 2017 |
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$ |
1,874 |
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$ |
2,705 |
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$ |
(4,361) |
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$ |
(1,102) |
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$ |
(884) |
Transfer of HTM securities to AFS securities(1) |
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2,785 |
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(2,785) |
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— |
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— |
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— |
Cumulative effects from adoption of new accounting standards (2) (3) |
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|
465 |
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|
583 |
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(1,094) |
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— |
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(46) |
Other comprehensive income (loss): |
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Other comprehensive income (loss) before reclassification |
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(10,711) |
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— |
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|
1,087 |
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— |
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(9,624) |
Amounts reclassified from AOCI into earnings |
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(362) |
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(408) |
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|
975 |
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|
76 |
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|
281 |
Net current period other comprehensive income (loss) |
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(11,073) |
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|
(408) |
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|
2,062 |
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|
76 |
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(9,343) |
Balance - December 31, 2018 |
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$ |
(5,949) |
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$ |
95 |
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$ |
(3,393) |
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$ |
(1,026) |
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$ |
(10,273) |
| (1) |
During the second quarter of 2018, the Company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category. The transfer of these securities resulted in an increase of approximately $400,000 to AOCI and is included as unrealized gains (losses) on AFS securities above.
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| (2) |
During the second quarter of 2018, the Company adopted ASU No. 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." As part of this adoption, the Company reclassified approximately $107,000 of these amounts from AOCI to retained earnings.
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| (3) |
During the first quarter of 2018, the Company adopted ASU No. 2016-01 "Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities." As part of this adoption, the Company reclassified approximately $61,000 of these amounts from AOCI to retained earnings.
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