EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2011

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. Under the plan, benefits are based on years of service and average earnings. The policy is to fund amounts approximating the maximum amount that is deductible for federal income tax purposes. BancShares contributed $10,000 to the plan in 2010 but made no contribution to the plan in 2011. The plan’s assets consist of investments in equity funds including small-cap, mid-cap, large-cap, and REIT concentrations. bond funds including investment grade, intermediate term, international and TIPS, as well as alternative investments in commodities and hedge funds.

Obligations and Funded Status

The following table provides the change in benefit obligation and plan assets and the funded status of the plan at December 31, 2011 and 2010.

	2011			2010
Change in Benefit Obligation
Benefit obligation at January 1	$	431,090		$	382,372
Service cost	13,265			12,191
Interest cost	23,810			22,930
Actuarial (gain) loss	38,946			25,818
Benefits paid	(13,463		)	(12,221		)
Benefit obligation at December 31	493,648			431,090
Change in Plan Assets
Fair value of plan assets at January 1	433,467			387,411
Actual return on plan assets	9,501			48,277
Employer contributions	—			10,000
Benefits paid	(13,463		)	(12,221		)
Fair value of plan assets at December 31	429,505			433,467
Funded status at December 31	$	(64,143	)	$	2,377

The amounts recognized in the consolidated balance sheets as of December 31, 2011 and 2010 consist of:

	2011			2010
Other assets	$	—		$	2,377
Other liabilities	(64,144		)	—
Net asset (liability) recognized	$	(64,144	)	$	2,377

Amounts recognized in accumulated other comprehensive income at December 31, 2011 and 2010 consist of:

	2011		2010
Net loss (gain)	$	123,858	$	72,089
Less prior service cost	1,397		1,607
Accumulated other comprehensive loss, excluding income taxes	$	125,255	$	73,696

The accumulated benefit obligation for the plan at December 31, 2011 and 2010 equaled $412,668 and $350,974, respectively. The plan uses a measurement date of December 31.

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, 2011, 2010 and 2009.

	2011			2010			2009
Service cost	$	13,265		$	12,191		$	12,661
Interest cost	23,810			22,930			21,900
Expected return on assets	(29,184		)	(29,274		)	(27,713		)
Amortization of prior service cost	210			210			210
Amortization of net actuarial loss	6,861			3,800			3,604
Total net periodic benefit cost	14,962			9,857			10,662
Current year actuarial gain (loss)	58,630			6,815			(49,889		)
Amortization of actuarial gain (loss)	(6,861		)	(3,800		)	(3,604		)
Amortization of prior service cost	(210		)	(210		)	(210		)
Total recognized in other comprehensive income	51,559			2,805			(53,703		)
Total recognized in net periodic benefit cost and other comprehensive income	$	66,521		$	12,662		$	(43,041	)

The assumptions used to determine the benefit obligations as of December 31, 2011 and 2010 are as follows:

	2011		2010
Discount rate	4.75	%	5.50	%
Rate of compensation increase	4.00		4.50

The assumptions used to determine the net periodic benefit cost for the years ended December 31, 2011, 2010 and 2009 are as follows:

	2011		2010		2009
Discount rate	5.50	%	6.00	%	6.00	%
Rate of compensation increase	4.50		4.50		4.50
Expected long-term return on plan assets	7.75		8.00		8.00

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 1996 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, 2011 equaled 7.39 percent, 6.89 percent and 4.66 percent, respectively. Based on these lower actual returns and expectations for generally modest returns over the next several years, the assumed rate of return for 2011 was 7.75 percent, compared to 8.00 percent in 2010.

Plan Assets

Investment decisions regarding the plan’s assets seek to achieve a favorable annual return through a diversified portfolio that will provide needed capital appreciation and cash flow to allow both current and future benefit obligations to be paid. The target asset mix may change if the objectives for the plan’s assets or risk tolerance change or if a major shift occurs in the expected long-term risk and reward characteristics of one or more asset classes.

The fair values of pension plan assets at December 31, 2011 and 2010 by asset category are as follows:

Asset Category	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
December 31, 2011
Cash and equivalents	$	5,002	$	5,002	$	—	$	—	1	%	1	%
Equity securities(a)									55 - 65 %		63	%
Consumer discretionary	24,003		24,003		—		—
Consumer staples	15,257		15,257		—		—
Energy	27,857		27,857		—		—
Information technology	35,206		35,206		—		—
Telecommunication	4,888		4,888		—		—
Financials	31,185		31,185		—		—
Utilities	6,263		6,263		—		—
Materials	10,548		10,548		—		—
Health care	30,195		30,195		—		—
Industrials	21,451		21,451		—		—
Rights to purchase securities	3,724		3,724		—		—
Mutual funds	60,493		60,493		—		—
Debt securities(b)									34 - 44 %		36	%
Bond funds	153,433		—		153,432		—
Total pension assets	$	429,505	$	276,072	$	153,432	$	—	100	%	100	%
December 31, 2010
Cash and equivalents	$	2,300	$	2,300	$	—	$	—	1	%	1	%
Equity securities(a)									55 - 65%		61	%
Consumer discretionary	26,880		26,880		—		—
Consumer staples	9,046		9,046		—		—
Energy	20,616		20,616		—		—
Information technology	46,194		46,194		—		—
Telecommunication	4,633		4,633		—		—
Financials	29,344		29,344		—		—
Utilities	5,260		5,260		—		—
Materials	13,707		13,707		—		—
Health care	29,640		29,640		—		—
Industrials	20,366		20,366		—		—
Rights to purchase securities	30,724		30,724		—		—
Mutual funds	44,707		44,707		—		—
Debt securities(b)									34 - 44%		38	%
Bond funds	150,050		—		150,050		—
Total pension assets	$	433,467	$	283,417	$	150,050	$	—	100	%	100	%

(a) This category includes investments in equity securities of large, small and medium sized companies from various industries.

(b) This category represents investment grade bonds from diverse industries.

Cash Flows

BancShares anticipates making no contributions to the pension plan during 2012. Following are estimated payments to pension plan participants in the indicated periods:

	Projected Benefit Payments
2012	$	15,756
2013	16,794
2014	18,005
2015	19,542
2016	21,283
2017-2021	131,733

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 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.

BancShares made participating contributions to both 401(k) plans totaling $13,633, $12,307 and $11,582 during 2011, 2010 and 2009, respectively.

Eligible employees hired after January 1, 2008 have the option to elect to participate in the enhanced 401(k) savings plan.

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, 2011 and 2010 and the changes in the accrued liability during the years then ended:

	2011			2010
Present value of accrued liability as of January 1	$	23,027		$	22,949
Benefit expense	1,799			105
Benefits paid	(1,877		)	(2,064		)
Interest cost	2,637			2,037
Present value of accrued liability as of December 31	$	25,586		$	23,027
Discount rate at December 31	4.75		%	5.50		%