Retirement Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Retirement Plans and Other Postretirement Benefits

Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan.

The Corporation also maintains a non-qualified benefit plan that provides supplemental executive retirement benefits to certain former executives, a portion of which is in excess of limits imposed on qualified plans by federal tax law. This non-qualified benefit plan is not offered to new participants and all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

Components of net periodic benefit cost were as follows: 

	Three Months Ended June 30,
	2020		2019		2020		2019
(Dollars in thousands)	Retirement Plans				Other Post Retirement Benefits
Service cost	$	116	$	110	$	27	$	16
Interest cost	417		476		25		24
Expected return on plan assets	(818)		(770)		—		—
Amortization of net actuarial loss	291		294		6		—
Accretion of prior service cost	—		(46)		—		—
Net periodic benefit cost	$	6	$	64	$	58	$	40

	Six Months Ended June 30,
	2020		2019		2020		2019
(Dollars in thousands)	Retirement Plans				Other Post Retirement Benefits
Service cost	$	233	$	219	$	55	$	33
Interest cost	834		952		49		47
Expected return on plan assets	(1,634)		(1,541)		—		—
Amortization of net actuarial loss	582		588		12		—
Accretion of prior service cost	—		(91)		—		—
Net periodic benefit cost	$	15	$	127	$	116	$	80

The components of net periodic benefit cost other than the service cost component are included in other noninterest expense in the consolidated statements of income.

The Corporation previously disclosed in its financial statements for the year ended December 31, 2019 that it expected to make contributions of $159 thousand to its non-qualified retirement plans and $89 thousand to its other postretirement benefit plans in 2020. During the six months ended June 30, 2020, the Corporation contributed $80 thousand to its non-qualified retirement plans and $56 thousand to its other postretirement plans. During the six months ended June 30, 2020, $1.3 million was paid to participants from the retirement plans and $56 thousand was paid to participants from the other postretirement plans.