EMPLOYEE BENEFITS (Tables)
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12 Months Ended |
Dec. 31, 2013
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Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract] |
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Schedule of changes in projected benefit obligation and fair value of plan assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2013 | | 2012 | | 2011 | | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | | | (in thousands) | Change in Projected Benefit Obligation: | | | | | | | | | | | | | Benefit obligation at end of prior year | | $ | 78,002 |
| | $ | 9,801 |
| | $ | 64,062 |
| | $ | 8,309 |
| | $ | 53,471 |
| | $ | 7,174 |
| Service cost | | 2,118 |
| | 298 |
| | 1,736 |
| | 160 |
| | 1,536 |
| | 174 |
| Interest cost | | 3,155 |
| | 468 |
| | 3,068 |
| | 390 |
| | 2,980 |
| | 395 |
| Actuarial (gain) loss | | (11,642 | ) | | 344 |
| | 10,866 |
| | 1,022 |
| | 7,741 |
| | 646 |
| Benefits paid | | (1,776 | ) | | (120 | ) | | (1,617 | ) | | (80 | ) | | (1,554 | ) | | (80 | ) | Expenses paid | | (111 | ) | | — |
| | (113 | ) | | — |
| | (112 | ) | | — |
| Plan amendments | | 300 |
| | 57 |
| | — |
| | — |
| | — |
| | — |
| Benefit obligation at end of year | | 70,046 |
| | 10,848 |
| | 78,002 |
| | 9,801 |
| | 64,062 |
| | 8,309 |
| Change in Plan Assets: | | |
| | |
| | |
| | |
| | |
| | |
| Fair value of plan assets at end of prior year | | 63,165 |
| | — |
| | 56,252 |
| | — |
| | 53,452 |
| | — |
| Actual return | | 12,712 |
| | — |
| | 5,643 |
| | — |
| | 2,466 |
| | — |
| Employer contributions | | 5,000 |
| | 120 |
| | 3,000 |
| | 80 |
| | 2,000 |
| | 80 |
| Benefits paid | | (1,776 | ) | | (120 | ) | | (1,617 | ) | | (80 | ) | | (1,554 | ) | | (80 | ) | Expenses paid | | (111 | ) | | — |
| | (113 | ) | | — |
| | (112 | ) | | — |
| Fair value of plan assets at end of year | | 78,990 |
| | — |
| | 63,165 |
| | — |
| | 56,252 |
| | — |
| Funded status at end of year | | 8,944 |
| | (10,848 | ) | | (14,837 | ) | | (9,801 | ) | | (7,810 | ) | | (8,309 | ) | Accrued benefit asset (liability) recognized | | $ | 8,944 |
| | $ | (10,848 | ) | | $ | (14,837 | ) | | $ | (9,801 | ) | | $ | (7,810 | ) | | $ | (8,309 | ) | Accumulated benefit obligation at end of year | | $ | 57,283 |
| | $ | 8,088 |
| | $ | 62,117 |
| | $ | 7,540 |
| | $ | 51,071 |
| | $ | 6,088 |
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Schedule of amounts recognized in other comprehensive income (loss) |
Amounts related to our defined benefit pension and restoration plans recognized as a component of other comprehensive income (loss) were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2013 | | 2012 | | 2011 | | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | Recognition of net loss | | $ | 2,197 |
| | $ | 590 |
| | $ | 1,704 |
| | $ | 318 |
| | $ | 1,163 |
| | $ | 303 |
| Recognition of prior service credit | | (42 | ) | | (1 | ) | | (42 | ) | | (1 | ) | | (42 | ) | | (2 | ) | Net gain (loss) occurring during the year | | 19,559 |
| | (344 | ) | | (9,340 | ) | | (1,022 | ) | | (9,158 | ) | | (646 | ) | Net prior service cost occurring during the year | | (300 | ) | | (57 | ) | | — |
| | — |
| | — |
| | — |
| | | 21,414 |
| | 188 |
| | (7,678 | ) | | (705 | ) | | (8,037 | ) | | (345 | ) | Deferred tax benefit | | (7,495 | ) | | (66 | ) | | 2,687 |
| | 247 |
| | 2,813 |
| | 121 |
| Other comprehensive income (loss), net of tax | | $ | 13,919 |
| | $ | 122 |
| | $ | (4,991 | ) | | $ | (458 | ) | | $ | (5,224 | ) | | $ | (224 | ) |
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Schedule of amounts in accumulated other comprehensive income (loss) recognized in net periodic benefit cost during period |
Net amounts recognized in net periodic benefit cost and other comprehensive loss as of December 31, 2013 and 2012 were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | 2013 | | 2012 | | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | Net loss | | $ | 2,197 |
| | $ | 590 |
| | $ | 1,704 |
| | $ | 318 |
| Prior service credit | | (42 | ) | | (1 | ) | | (42 | ) | | (1 | ) | | | 2,155 |
| | 589 |
| | 1,662 |
| | 317 |
| Deferred tax benefit | | (754 | ) | | (206 | ) | | (582 | ) | | (111 | ) | Accumulated other comprehensive loss, net of tax | | $ | 1,401 |
| | $ | 383 |
| | $ | 1,080 |
| | $ | 206 |
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Schedule of amounts recognized as a component of accumulated other comprehensive loss |
Amounts recognized as a component of accumulated other comprehensive loss as of December 31, 2013 and 2012 were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | 2013 | | 2012 | | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | Net loss | | $ | (14,618 | ) | | $ | (4,413 | ) | | $ | (36,374 | ) | | $ | (4,658 | ) | Prior service (cost) credit | | 38 |
| | (55 | ) | | 380 |
| | 2 |
| | | (14,580 | ) | | (4,468 | ) | | (35,994 | ) | | (4,656 | ) | Deferred tax benefit | | 5,103 |
| | 1,564 |
| | 12,598 |
| | 1,630 |
| Accumulated other comprehensive loss, net of tax | | $ | (9,477 | ) | | $ | (2,904 | ) | | $ | (23,396 | ) | | $ | (3,026 | ) |
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Schedule of assumptions used to determine benefit obligation and net periodic benefit cost |
At December 31, 2013 and 2012, the assumptions used to determine the benefit obligation were as follows:
| | | | | | | | | | | | | | | | 2013 | | 2012 | | | Defined Benefit Pension Plan | | Restoration Plan | | Defined Benefit Pension Plan | | Restoration Plan | Discount rate | | 5.06 | % | | 5.06 | % | | 4.08 | % | | 4.08 | % | Compensation increase rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | | 4.50 | % |
For the years ended December 31, 2013, 2012, and 2011, the assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows:
| | | | | | | | | | | | | 2013 | | 2012 | | 2011 | Defined Benefit Pension Plan | | | | | | | Discount rate | | 4.08 | % | | 4.84 | % | | 5.63 | % | Expected long-term rate of return on plan assets | | 7.25 | % | | 7.25 | % | | 7.25 | % | Compensation increase rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | Restoration Plan | | |
| | |
| | |
| Discount rate | | 4.08 | % | | 4.84 | % | | 5.63 | % | Compensation increase rate | | 4.50 | % | | 4.50 | % | | 4.50 | % |
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Schedule of components of net periodic pension cost and postretirement benefit cost |
Net periodic pension cost and postretirement benefit cost for the years ended December 31, 2013, 2012 and 2011 included the following components (in thousands):
| | | | | | | | | | | | | | | | 2013 | | 2012 | | 2011 | Defined Benefit Pension Plan | | | Service cost | | $ | 2,118 |
| | $ | 1,736 |
| | $ | 1,536 |
| Interest cost | | 3,155 |
| | 3,068 |
| | 2,980 |
| Expected return on assets | | (4,795 | ) | | (4,117 | ) | | (3,883 | ) | Net loss amortization | | 2,197 |
| | 1,704 |
| | 1,163 |
| Prior service credit amortization | | (42 | ) | | (42 | ) | | (42 | ) | Net periodic benefit cost | | $ | 2,633 |
| | $ | 2,349 |
| | $ | 1,754 |
| Restoration Plan | | | | | | | Service cost | | $ | 298 |
| | $ | 160 |
| | $ | 174 |
| Interest cost | | 468 |
| | 390 |
| | 395 |
| Net loss amortization | | 590 |
| | 318 |
| | 303 |
| Prior service credit amortization | | (1 | ) | | (1 | ) | | (2 | ) | Net periodic benefit cost | | $ | 1,355 |
| | $ | 867 |
| | $ | 870 |
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Schedule of amounts in accumulated other comprehensive income (loss) that is expected to be recognized as a component of net periodic benefit cost during 2014 |
The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2014 are as follows (in thousands):
| | | | | | | | | | | | Defined Benefit Pension Plan | | Restoration Plan | Net loss | | $ | 511 |
| | $ | 376 |
| Prior service cost (credit) | | (19 | ) | | 5 |
| | | 492 |
| | 381 |
| Deferred tax benefit | | (172 | ) | | (133 | ) | Accumulated other comprehensive loss, net of tax | | $ | 320 |
| | $ | 248 |
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Schedule of allocation of plan assets |
The major categories of assets in our Plan are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 12 – Fair Value Measurement”). Our Restoration Plan is unfunded.
| | | | | | | | | | | | December 31, | | | 2013 | | 2012 | | | (in thousands) | Level 1: | | | | | Cash | | $ | 3,651 |
| | $ | 2,251 |
| Equity Securities: | | |
| | |
| U.S. large cap (1) | | 26,784 |
| | 34,573 |
| U.S. mid cap (4) | | 6,744 |
| | 756 |
| U.S. small cap (2) | | 6,353 |
| | 4,158 |
| International developed (3) | | 2,696 |
| | 460 |
| International emerging (4) | | 1,315 |
| | 396 |
| Level 2: | | |
| | |
| Cash equivalents | | 15,589 |
| | 10,813 |
| Fixed Income Securities: | | |
| | |
| Corporate bonds (5) | | 823 |
| | 934 |
| U.S. government agencies (5) | | 4,373 |
| | 4,561 |
| Municipal bonds (5) | | 9,880 |
| | 3,076 |
| U.S. agency mortgage-backed securities (6) | | 782 |
| | 1,187 |
| Total fair value of plan assets | | $ | 78,990 |
| | $ | 63,165 |
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| | (1) | This category is comprised of individual securities that are actively managed and broadly diversified "passive" mutual fund. |
| | (2) | This category is comprised primarily of Southside Bancshares stock that is owned in the Plan and broadly diversified "passive" mutual fund. |
| | (3) | This category is comprised of a broadly ‘passive’ mutual fund. |
| | (4) | This category is comprised of a broadly diversified ‘passive’ mutual fund. |
| | (5) | This category is comprised of individual investment grade securities that are generally held to maturity. |
| | (6) | This category is comprised of individual securities that are generally not held to maturity. |
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Schedule of expected future benefit payments related to pension and postretirement plans |
As of December 31, 2013, expected future benefit payments related to our defined benefit pension plan and restoration plan were as follows (in thousands): | | | | | | | | | | Defined Benefit Pension Plan | | Restoration Plan | 2014 | $ | 2,213 |
| | $ | 189 |
| 2015 | 2,539 |
| | 244 |
| 2016 | 2,743 |
| | 314 |
| 2017 | 3,108 |
| | 686 |
| 2018 | 3,401 |
| | 734 |
| 2019 through 2023 | 20,883 |
| | 4,612 |
| | $ | 34,887 |
| | $ | 6,779 |
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Schedule of stock option valuation assumptions |
The estimated weighted-average grant-date fair value per option and the underlying Black-Scholes option-pricing model assumptions are summarized in the following table: | | | | | | | | Years Ended December 31, | | | 2013 | | 2012 | Weighted-average grant date fair value per option | | $8.58 | | $5.83 | Weighted-average assumptions: | | | | | Risk-free interest rates | | 2.23% | | 1.03% | Expected dividend yield | | 3.10% | | 3.82% | Expected volatility factors of the market price of Southside Bancshares common stock | | 40.88% | | 41.96% | Expected option life (in years) | | 6.9 | | 6.9 |
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Schedule of stock options and restricted stock units award activity |
A combined summary of activity in our share-based plans as of December 31, 2013 is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | Restricted Stock Units Outstanding | | Stock Options Outstanding | | | Shares Available for Grant | | Number of Shares | | Weighted- Average Grant-Date Fair Value | | Number of Shares | | Weighted- Average Exercise Price | | Weighted- Average Grant-Date Fair Value | Balance, January 1, 2013 | | 867,057 |
| | 50,178 |
| | $ | 18.93 |
| | 349,685 |
| | $ | 18.82 |
| | $ | 5.45 |
| Granted | | (185,325 | ) | | 27,039 |
| | 27.14 |
| | 158,286 |
| | 27.14 |
| | 8.58 |
| Stock options exercised | | — |
| | — |
| | — |
| | (11,442 | ) | | 18.03 |
| | 5.37 |
| Stock awards vested | | — |
| | (19,812 | ) | | 18.78 |
| | — |
| | — |
| | — |
| Forfeited | | 21,988 |
| | (3,310 | ) | | 18.80 |
| | (18,678 | ) | | 18.93 |
| | 5.45 |
| Canceled/expired | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Balance, December 31, 2013 | | 703,720 |
| | 54,095 |
| | $ | 23.09 |
| | 477,851 |
| | $ | 21.59 |
| | $ | 6.49 |
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Schedule of shares stock option exercise price range |
Other information regarding options outstanding and exercisable as of December 31, 2013 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | Options Outstanding | | Options Exercisable | Range of Exercise Prices | | Number of Shares | | Weighted- Average Exercise Price | | Weighted- Average Remaining Contractual Life in Years | | Number of Shares | | Weighted- Average Exercise Price | $ | 17.41 |
| - | 27.14 | | 477,851 |
| | $ | 21.59 |
| | 8.70 | | 135,142 |
| | $ | 18.47 |
| Total | | 477,851 |
| | $ | 21.59 |
| | 8.70 | | 135,142 |
| | $ | 18.47 |
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