XML 111 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2013
General Discussion of Pension and Other Postretirement Benefits [Abstract] |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS BancShares sponsors benefit plans for its qualifying employees including a noncontributory defined benefit pension plan, a 401(k) savings plan and an enhanced 401(k) savings plan. These plans are qualified under the Internal Revenue Code. BancShares also maintains agreements with certain executives that provide supplemental benefits that are paid upon death or separation from service at an agreed-upon age. Defined Benefit Pension Plan Employees who were hired prior to April 1, 2007, and who qualify under length of service and other requirements may participate in a noncontributory defined benefit pension plan (Plan). Under the Plan, benefits are based on years of service and average earnings. BancShares made no contributions to the plan during 2013 or 2012, and does not anticipate making any contribution during 2014. Obligations and Funded Status 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 | )
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 | )
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 |
The following table provides expected amortization amounts for 2014.
| (dollars in thousands)
Actuarial loss | $ | 6,184 |
Prior service cost | 210 |
Total | $ | 6,394 |
The accumulated benefit obligation for the plan at December 31, 2013, and 2012, equaled $448.7 million and $485.6 million, respectively. The Plan uses a measurement date of December 31. The projected benefit obligation exceeded the fair value of plan assets as of December 31, 2013, and 2012. The fair value of plan assets exceeded the accumulated benefit obligation as of December 31, 2013. The accumulated benefit obligation exceeded the fair value of plan assets as of December 31, 2012. 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 |
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 |
The estimated discount rate, which represents the interest rate that could be obtained for a suitable investment used to fund the benefit obligations, is based on a yield curve developed from high-quality corporate bonds across a full maturity spectrum. The projected cash flows of the pension plan are discounted based on this yield curve and a single discount rate is calculated to achieve the same present value. The estimated long-term rate of return on plan assets is used to calculate the value of plan assets over time. The methodology utilized to establish the estimated long-term rate of return on plan assets considers the actual return on plan assets for various time horizons since 1999 as a predictor of probable future returns. Historical returns are modified as appropriate by estimates of future market conditions that may positively or negatively affect estimated future returns. The return on plan assets for the 15-year, 10-year and 5-year periods ended December 31, 2013, equaled 6.99 percent, 8.39 percent and 13.37 percent, respectively. Based on expectations of modest returns over the next several years, the assumed rate of return for 2013 was 7.25 percent compared to 7.50 percent in 2012. Plan Assets BancShares' primary total return objective is to achieve returns that, over the long term, will fund retirement liabilities and provide for the desired plan benefits in a manner that satisfies the fiduciary requirements of the Employee Retirement Income Security Act. The plan assets have a long-term time horizon that runs concurrent with the average life expectancy of the participants. As such, the Plan can assume a time horizon that extends well beyond a full market cycle and can assume a reasonable level of risk. It is expected, however, that both professional investment management and sufficient portfolio diversification will smooth volatility and help to generate a reasonable consistency of return. The investments are broadly diversified among economic sector, industry, quality and size in order to reduce risk and to produce incremental return. Within approved guidelines and restrictions, the investment manager has discretion over the timing and selection of individual investments. Plan assets are currently held by FCB Trust Department. 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 | %
Cash Flows 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 |
401(k) Savings Plans Certain employees enrolled in the defined benefit plan are also eligible to participate in a 401(k) savings plan after 31 days of service through deferral of portions of their salary. For employees who participate in the 401(k) savings plan who also continue to accrue additional years of service under the defined benefit plan, based on the employee’s contribution, BancShares matches up to 75 percent of the employee contribution. At the end of 2007, current employees were given the option to continue to accrue additional years of service under the defined benefit plan or to elect to join an enhanced 401(k) savings plan. Under the enhanced 401(k) savings plan, based on the employee’s contribution, BancShares matches up to 100 percent of the employee contribution. In addition to the employer match of the employee contributions, the enhanced 401(k) savings plan provides a guaranteed contribution to plan participants if they remain employed at the end of each calendar year. Employees who elected to enroll in the enhanced 401(k) savings plan discontinued the accrual of additional years of service under the defined benefit plan and became enrolled in the enhanced 401(k) savings plan effective January 1, 2008. Eligible employees hired after January 1, 2008, have the option to elect to participate in the enhanced 401(k) savings plan. BancShares made participating contributions to both 401(k) plans totaling $14.9 million, $14.1 million and $13.6 million during 2013, 2012 and 2011, respectively. Additional Benefits for Executives and Directors and Officers of Acquired Entities FCB has entered into contractual agreements with certain executives that provide payments for a period of ten years following separation from service at an agreed-upon age. These agreements also provide a death benefit in the event a participant dies before the term of the agreement ends. FCB has also assumed liability for contractual obligations to directors and officers of previously-acquired entities. 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 | %

X
- Details
Name: | us-gaap_GeneralDiscussionOfPensionAndOtherPostretirementBenefitsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration