Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE BENEFIT PLANS

v3.23.2
EMPLOYEE BENEFIT PLANS
 6 Months Ended
Jun. 30, 2023
Employee Benefit Plans [Abstract]  
Employee benefit plans
NOTE 7 - EMPLOYEE BENEFIT PLANS
The Company has a defined benefit pension plan covering substantially all full-time
 
and eligible part-time associates and a
Supplemental Executive Retirement Plan (“SERP”) and a Supplemental
 
Executive Retirement Plan II (“SERP II”) covering its
executive officers.
 
The defined benefit plan was amended in December 2019 to remove plan eligibility
 
for new associates hired after
December 31, 2019.
 
The SERP II was adopted by the Company’s
 
Board on May 21, 2020 and covers certain executive officers that
were not covered by the SERP.
 
The components of the net periodic benefit cost for the Company’s
 
qualified benefit pension plan were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in Thousands)
2023
2022
2023
2022
Service Cost
$
872
$
1,572
$
1,744
$
3,145
Interest Cost
1,458
1,166
2,916
2,333
Expected Return on Plan Assets
(1,701)
(2,675)
(3,403)
(5,351)
Prior Service Cost Amortization
1
4
3
8
Net Loss Amortization
234
428
467
857
Pension Settlement Charge
-
169
-
378
Net Periodic Benefit Cost
$
864
$
664
$
1,727
$
1,370
Discount Rate
5.63%
3.11%
5.63%
3.11%
Long-term Rate of Return on Assets
6.75%
6.75%
6.75%
6.75%
The components of the net periodic benefit cost for the Company’s
 
SERP and SERP II were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in Thousands)
2023
2022
2023
2022
Service Cost
$
4
$
8
$
9
$
16
Interest Cost
130
79
261
158
Prior Service Cost Amortization
38
69
76
138
Net Loss Amortization
(155)
180
(309)
360
Pension Settlement Gain
(291)
-
(291)
-
Net Periodic Benefit Cost
$
(274)
$
336
$
(254)
$
672
Discount Rate
5.45%
2.80%
5.45%
2.80%
During the month of June 2023, lump sum payments made under the SERP triggered
 
settlement accounting and remeasurement of the
plan at June 30, 2023.
 
In accordance with applicable accounting guidance for retirement benefit plans,
 
the Company recorded a
settlement gain of $
0.3
 
million in June 2023.
The service cost component of net periodic benefit cost is reflected in
 
compensation expense in the accompanying statements of
income.
 
The other components of net periodic cost are included in “other” within the noninterest
 
expense category in the statements
of income.