Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits, Description [Abstract]

The following table provides the changes in benefit obligation and plan assets and the funded status of the Plans at December 31, 2020 and 2019.


(Dollars in thousands)	2020		2019
Change in benefit obligation
Projected benefit obligation at January 1	$	990,406	$	852,975
Service cost	14,279		12,767
Interest cost	34,197		37,260
Actuarial losses	72,080		118,964
Benefits paid	(33,309)		(31,560)
Projected benefit obligation at December 31	1,077,653		990,406
Change in plan assets
Fair value of plan assets at January 1	976,072		842,534
Actual return on plan assets	192,792		161,506
Employer contributions	100,000		3,592
Benefits paid	(33,309)		(31,560)
Fair value of plan assets at December 31	1,235,555		976,072
Funded status at December 31	$	157,902	$	(14,334)

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

Accumulated other comprehensive income (loss) included the following at December 31, 2020 and 2019:


	December 31, 2020						December 31, 2019
(Dollars in thousands)	Accumulated other comprehensive income (loss)		Deferred tax expense (benefit)		Accumulated other comprehensive income (loss), net of tax		Accumulated other comprehensive income (loss)		Deferred tax expense (benefit)		Accumulated other comprehensive income (loss), net of tax
Unrealized gains on securities available for sale	$	102,278	$	23,524	$	78,754	$	7,522	$	1,730	$	5,792
Unrealized gains on securities available for sale transferred from (to) held to maturity	5,399		1,242		4,157		—		—		—

Defined benefit pension items	(91,751)		(21,103)		(70,648)		(172,098)		(39,583)		(132,515)
Total	$	15,926	$	3,663	$	12,263	$	(164,576)	$	(37,853)	$	(126,723)

The following table highlights changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2020 and 2019:


(Dollars in thousands)	Unrealized gains (losses) on securities available-for-sale(1)		Unrealized gains (losses) on securities available for sale transferred to held to maturity(1)(2)		Defined benefit pension items(1)		Total
Balance at January 1, 2019	$	(38,505)	$	(71,149)	$	(125,533)	$	(235,187)


Net unrealized gains (losses) arising during period	49,776		55,834		(15,438)		90,172
Amounts reclassified from accumulated other comprehensive loss	(5,479)		15,315		8,456		18,292
Net current period other comprehensive income (loss)	44,297		71,149		(6,982)		108,464
Balance at December 31, 2019	5,792		—		(132,515)		(126,723)

Net unrealized gains arising during period	119,357		4,538		42,367		166,262
Amounts reclassified from accumulated other comprehensive loss	(46,395)		(381)		19,500		(27,276)
Net current period other comprehensive income	72,962		4,157		61,867		138,986
Balance at December 31, 2020	$	78,754	$	4,157	$	(70,648)	$	12,263

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

(2) Net unrealized gains (losses) represent unrealized gains and losses related to the reclassification of investment securities between categories. See Note C, Investments, for additional information.

The following table details the amounts recognized in accumulated other comprehensive income at December 31, 2020 and 2019.


(Dollars in thousands)	2020		2019
Net actuarial loss	$	91,751	$	172,098

Schedule of Net Benefit Costs

The following table shows the components of periodic benefit cost related to the Plans and changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2020, 2019 and 2018.


	Year ended December 31
(Dollars in thousands)	2020		2019		2018
Service cost	$	14,279	$	12,767	$	16,154
Interest cost	34,197		37,260		34,733
Expected return on assets	(65,689)		(62,590)		(60,296)
Amortization of prior service cost	—		57		79
Amortization of net actuarial loss	25,324		10,924		13,902
Total net periodic benefit cost (income)	8,111		(1,582)		4,572
Current year actuarial (gain) loss	(55,023)		20,049		32,012
Amortization of actuarial loss	(25,324)		(10,924)		(13,902)
Amortization of prior service cost	—		(57)		(79)
Net (gain) loss recognized in other comprehensive income	(80,347)		9,068		18,031
Total recognized in net periodic benefit cost and other comprehensive income	$	(72,236)	$	7,486	$	22,603

Schedule of Assumptions Used

The assumptions used to determine the benefit obligations at December 31, 2020 and 2019 are as follows:


	2020		2019
Discount rate	2.76	%	3.46	%
Rate of compensation increase	5.60		5.60

The assumptions used to determine the net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018, are as follows:


	2020		2019		2018
Discount rate	3.46	%	4.38	%	3.76	%
Rate of compensation increase	5.60		5.60		4.00
Expected long-term return on plan assets	7.50		7.50		7.50

Schedule of Fair Value and Allocation of Plan Assets

The fair values of pension plan assets at December 31, 2020 and 2019, by asset class are as follows:


	December 31, 2020
(Dollars in thousands)	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
Cash and equivalents	$	37,913	$	37,913	—		—		0 - 5%	3	%
Equity securities									30 - 70%	77	%
Common and preferred stock	144,924		144,924		—		—
Mutual funds	559,472		559,472		—		—
Exchange traded funds	248,819		248,819		—		—
Fixed income									15 - 45%	20	%
U.S. government and government agency securities	90,292		—		90,292		—
Corporate bonds	154,135		—		154,135		—



Total pension assets	$	1,235,555	$	991,128	$	244,427	$	—		100	%

	December 31, 2019
	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
Cash and equivalents	$	10,974	$	10,974	$	—	$	—	0 - 5%	1	%
Equity securities									30 - 70%	73	%
Common and preferred stock	142,157		142,157		—		—
Mutual funds	565,343		565,343		—		—

Fixed income									15 - 45%	23	%
U.S. government and government agency securities	78,175		—		78,175		—
Corporate bonds	122,370		—		122,370		—
Mutual funds	25,288		25,288		—		—
Alternative investments									0 - 30%	3	%
Mutual funds	31,765		31,765		—		—
Total pension assets	$	976,072	$	775,527	$	200,545	$	—		100	%

Schedule of Expected Benefit Payments

Cash Flows

The following are estimated payments to pension plan participants in the indicated periods:


(Dollars in thousands)	Estimated Payments
2021	$	38,660
2022	41,340
2023	43,777
2024	46,161
2025	48,343
2026-2030	269,256

Deferred Benefit Plans Liability Rollforward

The following table provides the accrued liability as of December 31, 2020 and 2019, and the changes in the accrued liability during the years then ended:


(Dollars in thousands)	2020			2019
Accrued liability as of January 1	$	45,295		$	34,063
Liability assumed in the Biscayne Bancshares acquisition	—			1,138
Liability assumed in the First South Bancorp acquisition	—			1,067
Liability assumed in the Entegra acquisition	—			9,738

Discount rate adjustment	1,719			1,574
Benefit expense and interest cost	3,503			2,396
Benefits paid	(7,862)			(4,681)

Accrued liability as of December 31	$	42,655		$	45,295
Discount rate at December 31	2.76		%	3.46		%