Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plan Disclosure [Line Items]

The following table provides the changes in benefit obligation and plan assets and the funded status of the plan at December 31, 2013, and 2012.



	2013			2012
	(dollars in thousands)
Change in benefit obligation
Benefit obligation at January 1	$	580,938		$	493,648
Service cost	16,332			14,241
Interest cost	23,686			23,711
Actuarial (gain) loss	(74,060		)	64,540
Benefits paid	(16,218		)	(15,202		)
Benefit obligation at December 31	530,678			580,938
Change in plan assets
Fair value of plan assets at January 1	463,005			429,505
Actual return on plan assets	77,230			48,702
Employer contributions	—			—
Benefits paid	(16,218		)	(15,202		)
Fair value of plan assets at December 31	524,017			463,005
Funded status at December 31	$	(6,661	)	$	(117,933	)

Schedule of Amounts Recognized in the Balance Sheets

The amounts recognized in the consolidated balance sheets as of December 31, 2013, and 2012, consist of:



	2013			2012
	(dollars in thousands)
Other assets	$	—		$	—
Other liabilities	(6,661		)	(117,933		)
Net asset (liability) recognized	$	(6,661	)	$	(117,933	)

Schedule of Amount Included in Accumulated Other Comprehensive Income (Loss)

The following table details the amounts recognized in accumulated other comprehensive income at December 31, 2013, and 2012:



	2013		2012
	(dollars in thousands)
Net loss (gain)	$	16,605	$	157,147
Less prior service cost	977		1,187
Accumulated other comprehensive loss, excluding income taxes	$	17,582	$	158,334

Accumulated other comprehensive income (loss) included the following as of December 31, 2013, and December 31, 2012:



	December 31, 2013									December 31, 2012
	Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax			Accumulated other comprehensive income (loss)			Deferred tax expense (benefit)			Accumulated other comprehensive income (loss), net of tax
	(dollars in thousands)
Unrealized (losses) gains on investment securities available for sale	$	(16,632	)	$	(6,541	)	$	(10,091	)	$	33,809		$	13,292		$	20,517
Unrealized loss on cash flow hedge	(7,220		)	(2,786		)	(4,434		)	(10,398		)	(4,106		)	(6,292		)
Funded status of defined benefit plan	(17,582		)	(6,839		)	(10,743		)	(158,334		)	(62,003		)	(96,331		)
Total	$	(41,434	)	$	(16,166	)	$	(25,268	)	$	(134,923	)	$	(52,817	)	$	(82,106	)

The following table highlights changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2013, and 2012:



	Unrealized gains and losses on available-for-sale securities¹			Gains and losses on cash flow hedges¹			Defined benefit pension items¹			Total
	(dollars in thousands)
Balance at January 1, 2012	$	16,115		$	(6,483	)	$	(76,206	)	$	(66,574	)
Other comprehensive income (loss) before reclassifications	5,807			(1,682		)	(26,961		)	(22,836		)
Amounts reclassified from accumulated other comprehensive income (loss)	(1,405		)	1,873			6,836			7,304
Net current period other comprehensive income (loss)	4,402			191			(20,125		)	(15,532		)
Balance at December 31, 2012	20,517			(6,292		)	(96,331		)	(82,106		)
Other comprehensive income (loss) before reclassifications	(30,608		)	(60		)	75,082			44,414
Amounts reclassified from accumulated other comprehensive loss	—			1,918			10,506			12,424
Net current period other comprehensive income (loss)	(30,608		)	1,858			85,588			56,838
Balance at December 31, 2013	$	(10,091	)	$	(4,434	)	$	(10,743	)	$	(25,268	)

¹ All amounts are net of tax. Amounts in parentheses indicate debits.

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The following table provides expected amortization amounts for 2014.




	(dollars in thousands)
Actuarial loss	$	6,184
Prior service cost	210
Total	$	6,394

Schedule of Net Benefit Costs

The following table shows the components of periodic benefit cost related to the pension plan and changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2013, 2012, and 2011.



	Year ended December 31
	2013			2012			2011
	(dollars in thousands)
Service cost	$	16,332		$	14,241		$	13,265
Interest cost	23,686			23,711			23,810
Expected return on assets	(27,733		)	(28,478		)	(29,184		)
Amortization of prior service cost	210			210			210
Amortization of net actuarial loss	16,985			11,026			6,861
Total net periodic benefit cost	29,480			20,710			14,962
Current year actuarial (loss) gain	(123,557		)	44,315			58,630
Amortization of actuarial loss	(16,985		)	(11,026		)	(6,861		)
Amortization of prior service cost	(210		)	(210		)	(210		)
Total recognized in other comprehensive income	(140,752		)	33,079			51,559
Total recognized in net periodic benefit cost and other comprehensive income	$	(111,272	)	$	53,789		$	66,521

Schedule of Assumptions Used

The assumptions used to determine the benefit obligations as of December 31, 2013, and 2012, are as follows:



	2013		2012
	(dollars in thousands)
Discount rate	4.90	%	4.00	%
Rate of compensation increase	4.00		4.00

The assumptions used to determine the net periodic benefit cost for the years ended December 31, 2013, 2012, and 2011, are as follows:



	2013		2012		2011
	(dollars in thousands)
Discount rate	4.00	%	4.75	%	5.50	%
Rate of compensation increase	4.00		4.00		4.50
Expected long-term return on plan assets	7.25		7.50		7.75

Schedule of Fair Value and Allocation of Plan Assets

The fair values of pension plan assets at December 31, 2013, and 2012, by asset class are as follows:



Asset Class	Market Value		Quoted prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Nonobservable Inputs (Level 3)		Target Allocation	Actual % of Plan Assets
	(dollars in thousands)
December 31, 2013
Cash and equivalents	$	2,517	$	2,517	$	—	$	—	0 - 1%	1	%
Equity securities									55 - 65%	62	%
Large cap	218,023		218,023		—		—
Mid cap	10,724		10,724		—		—
Small cap	43,928		43,928		—		—
International equity (developed)	10,535		10,535		—		—
International equity (emerging)	40,643		40,643		—		—
Fixed income					—		—		25-40%	28	%
Investment grade bonds	74,501		—		74,501		—
Intermediate bonds	48,746		—		48,746		—
High-yield corporate bonds	10,111		—		10,111		—
TIPS	4,395		4,395		—		—
International emerging bond	10,119		—		10,119		—
Alternative investments									0-10%	10	%
Commodities	19,014		19,014		—		—
Hedge fund composite	30,761		30,761				—
Total pension assets	$	524,017	$	380,540	$	143,477	$	—		100	%
December 31, 2012
Cash and equivalents	$	3,088	$	3,088	—		—		0 - 1%	1	%
Equity securities									55 - 65%	56	%
Large cap	172,512		172,512		—		—
Mid cap	21,451		21,451		—		—
Small cap	31,053		31,053		—		—
International equity (developed)	9,537		9,537		—		—
International equity (emerging)	24,276		24,276		—		—
Fixed income									36-44%	36	%
Investment grade bonds	71,986		—		71,986		—
Intermediate bonds	59,052		—		59,052		—
High-yield corporate bonds	18,487		—		18,487		—
TIPS	7,613		7,613		—		—
International emerging bond	9,348		—		9,348		—
Alternative investments			—		—		—		0-8%	8	%
Commodities	17,376		17,376		—		—
Hedge fund composite	17,226		17,226				—
Total pension assets	$	463,005	$	304,132	$	158,873	$	—		100	%

Schedule of Expected Benefit Payments

BancShares anticipates making no contributions to the pension plan during 2014. Following are estimated payments to pension plan participants in the indicated periods:



Year	Projected benefit payments
(dollars in thousands)
2014	$	18,070
2015	19,662
2016	21,484
2017	23,244
2018	24,937
2019-2023	150,638

Deferred Benefit Plans Liability Rollforward

The following table provides the accrued liability as of December 31, 2013, and 2012, and the changes in the accrued liability during the years then ended:



	2013			2012
	(dollars in thousands)
Present value of accrued liability as of January 1	$	25,851		$	25,586
Benefit expense	959			462
Benefits paid	(3,042		)	(3,241		)
Benefits forfeited	—			554
Interest cost	192			2,490
Present value of accrued liability as of December 31	$	23,960		$	25,851
Discount rate at December 31	4.90		%	4.00		%