XML 38 R21.htm IDEA: XBRL DOCUMENT v3.24.0.1
Retirement Plans and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retirement Plans and Other Postretirement Benefits Retirement Plans and Other Postretirement Benefits
Information with respect to the Retirement Plans and Other Postretirement Benefits follows:
Retirement PlansOther Postretirement Benefits
(Dollars in thousands)2023202220232022
Change in benefit obligation:
Benefit obligation at beginning of year$47,279 $57,698 $2,524 $3,536 
Service cost532 558 76 123 
Interest cost2,365 1,573 129 96 
Actuarial gain (loss)1,436 (9,776)(427)(1,136)
Benefits paid(2,835)(2,774)(93)(95)
Benefit obligation at end of year$48,777 $47,279 $2,209 $2,524 
Change in plan assets:
Fair value of plan assets at beginning of year$49,399 $60,479 $— $— 
Actual return (loss) on plan assets7,627 (8,463)— — 
Benefits paid(2,835)(2,774)(93)(95)
Employer contribution and non-qualified benefit payments157 157 93 95 
Fair value of plan assets at end of year$54,348 $49,399 $— $— 
Funded status5,571 2,120 (2,209)(2,524)
Unrecognized net actuarial loss (gain)15,715 19,851 (784)(371)
Net amount recognized$21,286 $21,971 $(2,993)$(2,895)

The net actuarial loss (gain) for December 31, 2023 and 2022 was the result of changes in the discount rate, interest crediting rate, cash balance conversion rate and driven by mortality gains on inactive lives.
Components of net periodic benefit cost (income) were as follows: 
Retirement PlansOther Postretirement Benefits
(Dollars in thousands)202320222021202320222021
Service cost$532 $558 $567 $76 $123 $143 
Interest cost2,365 1,573 1,431 129 96 85 
Expected loss on plan assets(3,056)(3,756)(3,656)— — — 
Amortization of net actuarial loss (gain)1,001 817 1,269 (16)56 47 
Net periodic benefit cost (income)$842 $(808)$(389)$189 $275 $275 

The components of net periodic benefit cost, other than the service cost component, are included in other noninterest expense in the consolidated statement of income.
(Dollars in thousands)Retirement PlansOther Postretirement Benefits
Expected amortization expense for 2024:
Amortization (accretion) of net actuarial loss (gain)$701 $(113)

During 2024, the Corporation expects to contribute approximately $156 thousand to the Retirement Plans and approximately $112 thousand to Other Postretirement Benefit Plans.
The following benefits payments, which reflect expected future service, as appropriate, are expected to be paid:
(Dollars in thousands)Retirement PlansOther Postretirement Benefits
For the fiscal year ending:
2024$3,158 $112 
20253,175 115 
20263,247 120 
20273,272 126 
20283,284 130 
Years 2029-203316,542 707 
       Total$32,678 $1,310 
Weighted-average assumptions used to determine benefit obligations at December 31, 2023 and 2022 were as follows:
Retirement PlansOther Postretirement Benefits
2023202220232022
Assumed discount rate5.0 %5.2 %5.0 %5.2 %
Assumed salary increase rate3%-6%3%-6%— — 

The benefit obligation for all plans at December 31, 2023 was based on the Pri-2012 White Collar Dataset Mortality Table with scale MP-2021 fully generational published by the Society of Actuaries. The discount rate is based on matching the Plan's projected cash flows to the spot rates in FTSE Pension Above Median Double-A Curve as of the disclosure date. The assumed salary increase considers available service years from the valuation date through the participant's normal retirement date.

Weighted-average assumptions used to determine net periodic costs for the years ended December 31, 2023 and 2022 were as follows:
Retirement PlansOther Postretirement Benefits
2023202220232022
Assumed discount rate5.2 %2.8 %5.2 %2.8 %
Assumed long-term rate of investment return6.5 %6.5 %— — 
Assumed salary increase rate3%-6%3%-6%— — 
Assumed cash balance interest crediting rate4.8 %2.6 %— — 

The net periodic costs for the years ended December 31, 2023 and 2022 was based on the Pri-2012 White Collar Mortality Table with scale MP-2021 fully generational published by the Society of Actuaries. The discount rate was based on matching the Plan's projected cash flows to the spot rates in FTSE Pension Above Median Double-A Curve as of the disclosure date. Historical investment returns is the basis used to determine the overall expected long-term rate of return on assets. The assumed salary increase considers available service years from the valuation date through the participant's normal retirement date.

The Corporation's pension plan asset allocation at December 31, 2023 and 2022, by asset category was as follows:
Percentage of Plan Assets at December 31,
20232022
Asset Category:
Equity securities64 %62 %
Debt securities34 36 
Other2 2 
Total100 %100 %
Plan assets include marketable equity securities, corporate and government debt securities, and certificates of deposit. The investment strategy is to keep a 60% equity to 40% fixed income mix to achieve the overall expected long-term rate of return of 6.5%. Equity securities do not include any common stock of the Corporation.

The major categories of assets in the Corporation's pension plan at year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy described in Note 19, "Fair Value Disclosures."
Fair Value Measurements at December 31,
(Dollars in thousands)20232022
Level 1:
Mutual funds$35,554 $32,982 
Short-term investments1,208 1,187 
U.S. treasury bonds243 — 
Level 2:
U.S. government obligations7,699 6,629 
Corporate bonds6,937 5,427 
Certificates of deposit2,707 3,174 
Total fair value of plan assets$54,348 $49,399 

The Corporation sponsors a 401(k) deferred salary savings plan, which is a qualified defined contribution plan, and which covers all employees of the Corporation and its subsidiaries, and provides that the Corporation makes matching contributions as defined by the plan. Expense recorded by the Corporation for the 401(k) deferred salary savings plan was $2.2 million, $2.1 million and $1.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.    

The Corporation sponsors a Supplemental Non-Qualified Pension Plan ("SNQPP"), which was established in 1981 prior to the existence of the 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants. All current participants are now retired. The Corporation recorded income of $15 thousand for the SNQPP for the year ended December 31, 2023 and expense of $174 thousand and $112 thousand for the years ended December 31, 2022 and 2021, respectively.