Benefit Plans (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Benefit plans |
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| Schedule of amounts recognized in other comprehensive income from benefit plans |
| | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | (dollars in thousands) | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | Amounts arising during the year: | | | | | | | | | | | | | | | | | | | | Net (gain) loss on pension assets | | $ | (16,278) | | $ | 12,209 | | $ | (8,619) | | $ | — | | $ | — | | $ | — | | Net loss (gain) on pension obligations | | | 21,512 | | | (6,619) | | | 9,757 | | | 540 | | | (2,755) | | | (34) | | Reclassification adjustments recognized as components of net periodic benefit cost during the year: | | | | | | | | | | | | | | | | | | | | Net (gain) loss | | | (6,995) | | | (7,315) | | | (8,625) | | | 385 | | | — | | | — | | Prior service credit | | | — | | | — | | | — | | | 429 | | | 429 | | | 429 | | Amount recognized in other comprehensive income | | $ | (1,761) | | $ | (1,725) | | $ | (7,487) | | $ | 1,354 | | $ | (2,326) | | $ | 395 | |
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| Schedule of amounts within accumulated other comprehensive income not yet recognized in net periodic benefit cost |
| | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | Net actuarial loss (gain) | | $ | 40,061 | | $ | 41,822 | | $ | (1,582) | | $ | (2,507) | Prior service credit | | | — | | | — | | | (51) | | | (480) | Total, pretax effect | | | 40,061 | | | 41,822 | | | (1,633) | | | (2,987) | Tax impact | | | (10,786) | | | (11,260) | | | 440 | | | 804 | Ending balance in accumulated other comprehensive loss | | $ | 29,275 | | $ | 30,562 | | $ | (1,193) | | $ | (2,183) |
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| Schedule of amounts within accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost |
| | | | | | | | | Pension | | Other | (dollars in thousands) | | Benefits | | Benefits | Amortization of prior service credit | | $ | — | | $ | (51) | Amortization of net actuarial loss (gain) | | | 5,753 | | | (103) | Total to be recognized in 2020 | | $ | 5,753 | | $ | (154) |
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| Summary of changes to projected or accumulated benefit obligation |
| | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | Benefit obligation at beginning of year | | $ | 199,072 | | $ | 212,981 | | $ | 19,716 | | $ | 21,449 | Service cost | | | 14 | | | 696 | | | 710 | | | 750 | Interest cost | | | 8,261 | | | 7,362 | | | 808 | | | 739 | Actuarial loss (gain) | | | 22,573 | | | (6,619) | | | 540 | | | (2,755) | Curtailment gain | | | (1,061) | | | — | | | — | | | — | Benefit payments | | | (15,574) | | | (15,348) | | | (469) | | | (467) | Benefit obligation at end of year | | $ | 213,285 | | $ | 199,072 | | $ | 21,305 | | $ | 19,716 | | | | | | | | | | | | | |
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| Summary of changes to fair value of plan assets |
| | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | Fair value of plan assets at beginning of year | | $ | 99,581 | | $ | 114,220 | | $ | — | | $ | — | Actual return on plan assets | | | 20,863 | | | (6,936) | | | — | | | — | Benefit payments from trust | | | (7,785) | | | (7,703) | | | — | | | — | Fair value of plan assets at end of year | | $ | 112,659 | | $ | 99,581 | | $ | — | | $ | — |
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| Summary of funded status of plans |
| | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | Pension assets for overfunded plans | | $ | 16,291 | | $ | 8,702 | | $ | — | | $ | — | Pension liabilities for underfunded plans | | | (116,917) | | | (108,193) | | | (21,305) | | | (19,716) | Funded status | | $ | (100,626) | | $ | (99,491) | | $ | (21,305) | | $ | (19,716) | | | | | | | | | | | | | |
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| Schedule of projected and accumulated benefit obligation and fair value of plan assets |
| | | | | | | | | | | | | | | | | | | | | Funded Pension Plan | | Unfunded Pension Plans | | Total Pension Plans | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | | 2019 | | 2018 | Projected benefit obligation | | $ | 96,368 | | $ | 90,879 | | $ | 116,917 | | $ | 108,193 | | $ | 213,285 | | $ | 199,072 | Accumulated benefit obligation | | | 96,368 | | | 90,879 | | | 116,834 | | | 106,357 | | | 213,202 | | | 197,236 | Fair value of plan assets | | | 112,659 | | | 99,581 | | | — | | | — | | | 112,659 | | | 99,581 | Overfunded (underfunded) portion of PBO/ABO | | | 16,291 | | | 8,702 | | | (116,917) | | | (108,193) | | | (100,626) | | | (99,491) |
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| Summary of change in net actuarial loss and amortization |
| | | | | | | | | | | | | | | Income | | | | | | | | | Tax | | | | | | Pre-tax | | Benefit | | Net of | (dollars in thousands) | | Amount | | (Expense) | | Tax | Accumulated other comprehensive loss at December 31, 2018 | | $ | (180,915) | | $ | 48,720 | | $ | (132,195) | Year ended December 31, 2019 | | | | | | | | | | Pension and other benefits: | | | | | | | | | | Net actuarial losses arising during the year | | | (5,774) | | | 1,555 | | | (4,219) | Prior service credit | | | (429) | | | 115 | | | (314) | Amortization of net loss included in net income | | | 6,610 | | | (1,780) | | | 4,830 | Net change in pension and other benefits | | | 407 | | | (110) | | | 297 | Investment securities: | | | | | | | | | | Unrealized net gains arising during the year | | | 134,343 | | | (36,178) | | | 98,165 | Reclassification of net losses to net income: | | | | | | | | | | Investment securities losses, net | | | 2,715 | | | (731) | | | 1,984 | Net change in investment securities | | | 137,058 | | | (36,909) | | | 100,149 | Other comprehensive income | | | 137,465 | | | (37,019) | | | 100,446 | Accumulated other comprehensive loss at December 31, 2019 | | $ | (43,450) | | $ | 11,701 | | $ | (31,749) |
| | | | | | | | | | | | | | | Income | | | | | | | | | Tax | | | | | | Pre-tax | | Benefit | | Net of | (dollars in thousands) | | Amount | | (Expense) | | Tax | Accumulated other comprehensive loss at December 31, 2017 | | $ | (159,423) | | $ | 63,040 | | $ | (96,383) | Year ended December 31, 2018 | | | | | | | | | | Early adoption of ASU No. 2018-02 | | | — | | | (20,068) | | | (20,068) | Pension and other benefits: | | | | | | | | | | Net actuarial losses arising during the year | | | (2,835) | | | 763 | | | (2,072) | Prior service credit | | | (429) | | | 116 | | | (313) | Amortization of net loss included in net income | | | 7,315 | | | (1,970) | | | 5,345 | Net change in pension and other benefits | | | 4,051 | | | (1,091) | | | 2,960 | Investment securities: | | | | | | | | | | Unrealized net losses arising during the year | | | (43,545) | | | 11,686 | | | (31,859) | Reclassification of net gains to net income: | | | | | | | | | | OTTI losses on available-for-sale debt securities, net | | | 24,085 | | | (6,485) | | | 17,600 | Net change in investment securities | | | (19,460) | | | 5,201 | | | (14,259) | Cash flow derivative hedges: | | | | | | | | | | Unrealized net gains on cash flow derivative hedges arising during the year | | | 1,475 | | | (397) | | | 1,078 | Reclassification of net gains to net income: | | | | | | | | | | Other noninterest expense | | | (7,558) | | | 2,035 | | | (5,523) | Net change in cash flow derivative hedges | | | (6,083) | | | 1,638 | | | (4,445) | Other comprehensive loss | | | (21,492) | | | 5,748 | | | (15,744) | Accumulated other comprehensive loss at December 31, 2018 | | $ | (180,915) | | $ | 48,720 | | $ | (132,195) |
| | | | | | | | | | | | | | | Income | | | | | | | | | Tax | | | | | | Pre-tax | | Benefit | | Net of | (dollars in thousands) | | Amount | | (Expense) | | Tax | Accumulated other comprehensive loss at December 31, 2016 | | $ | (145,472) | | $ | 57,461 | | $ | (88,011) | Year ended December 31, 2017 | | | | | | | | | | Pension and other benefits: | | | | | | | | | | Net actuarial losses arising during the year | | | (1,104) | | | 436 | | | (668) | Prior service credit | | | (429) | | | 170 | | | (259) | Amortization of net loss included in net income | | | 8,625 | | | (3,407) | | | 5,218 | Net change in pension and other benefits | | | 7,092 | | | (2,801) | | | 4,291 | Investment securities: | | | | | | | | | | Unrealized net losses arising during the year | | | (23,516) | | | 9,357 | | | (14,159) | Net change in investment securities | | | (23,516) | | | 9,357 | | | (14,159) | Cash flow derivative hedges: | | | | | | | | | | Unrealized net gains on cash flow derivative hedges arising during the year | | | 2,473 | | | (977) | | | 1,496 | Net change in cash flow derivative hedges | | | 2,473 | | | (977) | | | 1,496 | Other comprehensive loss | | | (13,951) | | | 5,579 | | | (8,372) | Accumulated other comprehensive loss at December 31, 2017 | | $ | (159,423) | | $ | 63,040 | | $ | (96,383) |
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| Schedule of components of net periodic benefit cost |
| | | | | | | | | | | | | | | | | | | | | | | | Income line item where recognized in | | Pension Benefits | | Other Benefits | | (dollars in thousands) | | the consolidated statements of income | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | Service cost | | Salaries and employee benefits | | $ | 14 | | $ | 696 | | $ | 629 | | $ | 710 | | $ | 750 | | $ | 738 | | Interest cost | | Other noninterest expense | | | 8,261 | | | 7,362 | | | 8,297 | | | 808 | | | 739 | | | 776 | | Expected return on plan assets | | Other noninterest expense | | | (4,585) | | | (5,273) | | | (5,003) | | | — | | | — | | | — | | Prior service credit | | Other noninterest expense | | | — | | | — | | | — | | | (429) | | | (429) | | | (429) | | Recognized net actuarial loss (gain) | | Other noninterest expense | | | 6,995 | | | 7,315 | | | 8,625 | | | (385) | | | — | | | — | | Total net periodic benefit cost | | | | $ | 10,685 | | $ | 10,100 | | $ | 12,548 | | $ | 704 | | $ | 1,060 | | $ | 1,085 | |
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| Schedule of funded pension benefit amounts included in pension benefits |
| | | | | | | | | | | | Funded Pension Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2017 | Interest cost | | $ | 3,808 | | $ | 3,420 | | $ | 3,922 | Expected return on plan assets | | | (4,585) | | | (5,273) | | | (5,003) | Recognized net actuarial loss | | | 3,714 | | | 2,600 | | | 4,316 | Total net periodic benefit cost | | $ | 2,937 | | $ | 747 | | $ | 3,235 |
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| Schedule of assumptions used to determine benefit obligations and net periodic benefit cost |
The following weighted-average assumptions were used to determine benefit obligations at December 31, 2019 and 2018: | | | | | | | | | | | | | | | | FHI ERP Pension Benefits | | SERP Pension Benefits | | Other Benefits | | | | 2019 | | 2018 | | 2019 | | 2018 | | 2019 | | 2018 | | Discount rate | | 3.16 | % | 4.30 | % | 3.16 | % | 4.30 | % | 3.16 | % | 4.30 | % | Rate of compensation increase | | NA | | NA | | 4.00 | % | 4.00 | % | NA | | NA | |
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017 were as follows: | | | | | | | | | | | | | | | | | | | | | | FHI ERP Pension Benefits | | SERP Pension Benefits | | Other Benefits | | | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | Discount rate | | 4.30 | % | 3.51 | % | 4.05 | % | 4.30 | % | 3.51 | % | 4.05 | % | 4.30 | % | 3.51 | % | 4.05 | % | Expected long-term return on plan assets | | 4.75 | % | 4.75 | % | 4.75 | % | NA | | NA | | NA | | NA | | NA | | NA | | Rate of compensation increase | | NA | | NA | | NA | | 4.00 | % | 4.00 | % | 4.00 | % | NA | | NA | | NA | |
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| Schedule of assumed healthcare cost trend rates |
| | | | | | | | | | 2019 | | 2018 | | 2017 | | Healthcare cost trend rate assumed for next year | | 6.50 | % | 7.00 | % | 7.00 | % | Rate to which the cost trend is assumed to decline (the ultimate trend rate) | | 5.00 | % | 5.00 | % | 5.00 | % | Year that the rate reaches the ultimate trend rate | | 2026 | | 2026 | | 2026 | |
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| Schedule of pre-tax effect of one percentage point change in assumed healthcare cost trend rates |
| | | | | | | | | One Percentage- | | One Percentage- | (dollars in thousands) | | Point Increase | | Point Decrease | Effect on 2019 total of service and interest cost components | | $ | 75 | | $ | (67) | Effect on postretirement benefit obligation at December 31, 2019 | | | 353 | | | (328) |
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| Schedule of allocation of employee retirement plan assets |
| | | | | | | | Asset Allocation | | | | 2019 | | 2018 | | Equity securities | | 31 | % | 29 | % | Debt securities | | 66 | % | 69 | % | Other securities | | 3 | % | 2 | % | Total | | 100 | % | 100 | % |
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| Schedule of target allocation of employee retirement plan assets |
| | | | | | Target | | | Allocation | Equity securities | | 30 | % | Debt securities | | 68 | % | Other securities | | 2 | % |
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| Schedule of expected future benefit payments |
| | | | | | | | | Pension | | Other | (dollars in thousands) | | Benefits | | Benefits | 2020 | | $ | 16,120 | | $ | 1,205 | 2021 | | | 15,902 | | | 1,315 | 2022 | | | 15,580 | | | 1,410 | 2023 | | | 15,176 | | | 1,487 | 2024 | | | 14,739 | | | 1,546 | 2025 to 2029 | | | 69,769 | | | 8,085 |
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| Schedule of fair value of employee retirement plan assets |
| | | | | | | | | | | | | | | December 31, 2019 | | | Quoted Prices | | Significant | | | | | | | In Active | | Other | | Significant | | | | | Markets for | | Observable | | Unobservable | | | | | Identical Assets | | Inputs | | Inputs | | | (dollars in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Total | Asset classes: | | | | | | | | | | | | | Cash and cash equivalents | | $ | 2,824 | | $ | — | | $ | — | | $ | 2,824 | Fixed income - U.S. Treasury securities | | | — | | | 4,053 | | | — | | | 4,053 | Fixed income - U.S. government agency securities | | | — | | | 3,504 | | | — | | | 3,504 | Fixed income - U.S. corporate securities | | | — | | | 58,808 | | | — | | | 58,808 | Fixed income - municipal securities | | | — | | | 484 | | | — | | | 484 | Fixed income - mutual funds | | | 6,204 | | | — | | | — | | | 6,204 | Fixed income - international securities | | | 1,544 | | | — | | | — | | | 1,544 | Equity - large-cap exchange-traded funds | | | 23,278 | | | — | | | — | | | 23,278 | Equity - mid-cap exchange-traded funds | | | 3,379 | | | — | | | — | | | 3,379 | Equity - small-cap exchange-traded funds | | | 1,645 | | | — | | | — | | | 1,645 | Equity - international funds | | | 6,936 | | | — | | | — | | | 6,936 | Total | | $ | 45,810 | | $ | 66,849 | | $ | — | | $ | 112,659 |
| | | | | | | | | | | | | | | December 31, 2018 | | | Quoted Prices | | Significant | | | | | | | In Active | | Other | | Significant | | | | | Markets for | | Observable | | Unobservable | | | | | Identical Assets | | Inputs | | Inputs | | | (dollars in thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Total | Asset classes: | | | | | | | | | | | | | Cash and cash equivalents | | $ | 2,428 | | $ | — | | $ | — | | $ | 2,428 | Fixed income - U.S. Treasury securities | | | — | | | 4,450 | | | — | | | 4,450 | Fixed income - U.S. government agency securities | | | — | | | 3,565 | | | — | | | 3,565 | Fixed income - U.S. corporate securities | | | — | | | 53,721 | | | — | | | 53,721 | Fixed income - municipal securities | | | — | | | 451 | | | — | | | 451 | Fixed income - mutual funds | | | 6,272 | | | — | | | — | | | 6,272 | Equity - large-cap mutual funds | | | 8,831 | | | — | | | — | | | 8,831 | Equity - large-cap exchange-traded funds | | | 10,482 | | | — | | | — | | | 10,482 | Equity - mid-cap exchange-traded funds | | | 2,544 | | | — | | | — | | | 2,544 | Equity - small-cap exchange-traded funds | | | 1,176 | | | — | | | — | | | 1,176 | Equity - international funds | | | 5,661 | | | — | | | — | | | 5,661 | Total | | $ | 37,394 | | $ | 62,187 | | $ | — | | $ | 99,581 |
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| Pension and other benefits, net actuarial losses arising during the year |
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| Benefit plans |
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| Summary of change in net actuarial loss and amortization |
| | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | (dollars in thousands) | | 2019 | | 2018 | | 2019 | | 2018 | Net actuarial loss (gain) at beginning of year | | $ | 41,822 | | $ | 43,547 | | $ | (2,507) | | $ | 248 | Amortization cost | | | (6,995) | | | (7,315) | | | 385 | | | — | Liability loss (gain) | | | 21,512 | | | (6,619) | | | 540 | | | (2,755) | Asset (gain) loss | | | (16,278) | | | 12,209 | | | — | | | — | Net actuarial loss (gain) at end of year | | $ | 40,061 | | $ | 41,822 | | $ | (1,582) | | $ | (2,507) |
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