Employee benefit plans (Tables)

12 Months Ended

Dec. 31, 2023

Summary of financial position of the Bank’s defined benefit pension plans and the Bank’s post-retirement medical benefits

The following table presents the financial position of the Bank’s defined benefit pension plans and the Bank’s post-retirement medical benefit plan, which is unfunded. The Bank measures the benefit obligations and plan assets annually on each December 31 and therefore, the most recent measurement date is December 31, 2023.

The 2023 net actuarial loss recognized in the defined benefit plans is largely due to a decrease in discount rates as well as an update to census data used to value the benefit

obligation.


	December 31, 2023		December 31, 2022		December 31, 2021
	Pension plans	Post- retirement medical benefit plan	Pension plans	Post- retirement medical benefit plan	Pension plans	Post- retirement medical benefit plan
Accumulated benefit obligation at end of year	110,004	88,682	106,748	91,983	157,478	125,968

Change in projected benefit obligation
Projected benefit obligation at beginning of year	106,748	91,983	157,478	125,968	179,018	128,167
Service cost	—	76	—	130	—	82

Interest cost	5,367	4,786	3,026	3,114	2,729	2,594
Benefits paid	(7,829)	(3,244)	(9,153)	(5,774)	(9,050)	(3,712)
Prior service cost	—	—	—	—	403	—

Settlement and curtailment of liability	—	—	—	—	(5,906)	—
Actuarial (gain) loss	3,368	(4,919)	(37,425)	(31,455)	(9,093)	(1,163)
Foreign exchange translation adjustment	2,350	—	(7,178)	—	(623)	—
Projected benefit obligation at end of year	110,004	88,682	106,748	91,983	157,478	125,968

Change in plan assets
Fair value of plan assets at beginning of year	137,294	—	179,025	—	182,516	—
Actual return on plan assets	3,725	—	(24,574)	—	10,265	—

Employer contribution	386	3,244	207	5,774	1,680	3,712

Plan settlement	—	—	—	—	(5,625)	—
Benefits paid	(7,829)	(3,244)	(9,153)	(5,774)	(9,050)	(3,712)
Foreign exchange translation adjustment	3,077	—	(8,211)	—	(761)	—
Fair value of plan assets at end of year	136,653	—	137,294	—	179,025	—

Amounts recognized in the consolidated balance sheets consist of:
Prepaid benefit cost included in accrued interest and other assets	26,661	—	30,581	—	21,809	—
Accrued pension benefit cost included in employee benefit plans liability	(12)	(88,682)	(35)	(91,983)	(262)	(125,968)
Surplus (deficit) of plan assets over projected benefit obligation at measurement date	26,649	(88,682)	30,546	(91,983)	21,547	(125,968)

Schedule of amounts recognized in accumulated other comprehensive loss


		Year ended
		December 31, 2023		December 31, 2022		December 31, 2021
		Pension plans	Post- retirement medical benefit plan	Pension plans	Post- retirement medical benefit plan	Pension plans	Post- retirement medical benefit plan
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Net actuarial gain (loss), excluding deferred taxes		(51,165)	18,114	(47,452)	14,528	(55,809)	(18,371)
Net prior service credit (cost)		(398)	(6,294)	(453)	(6,818)	(591)	(7,342)

Net amount recognized in accumulated other comprehensive income (loss)		(51,563)	11,820	(47,905)	7,710	(56,400)	(25,713)

Annual benefit expense
Expense component	Line item in the consolidated statements of operations
Service cost	Salaries and other employee benefits	—	76	—	130	58	82
Interest cost	Non-service employee benefits expense	5,367	4,786	3,027	3,114	2,729	2,594
Expected return on plan assets	Non-service employee benefits expense	(6,117)	—	(6,633)	—	(6,437)	N/A
Amortization of net actuarial (gains) losses	Non-service employee benefits expense	2,284	524	2,218	1,444	2,766	1,679
Amortization of prior service (credit) loss	Non-service employee benefits expense	79	(1,333)	81	524	(25)	524
(Gain) loss on settlement	Net other gains (losses)/Non-service employee benefits expense	—	—	(907)	—	1,679	—
Defined benefit (income) expense		1,613	4,053	(2,214)	5,212	770	4,879
Defined contribution expense		8,525	—	7,825	—	8,259	—
Total benefit (income) expense		10,138	4,053	5,611	5,212	9,029	4,879
The components of benefit expense (income) other than the service cost component are included in the line item non-service employee benefits expense in the consolidated statements of operations.

Other changes recognized in other comprehensive income (loss)
Net gain (loss) arising during the year		(5,762)	4,919	6,218	31,455	14,772	1,163
Net loss (gain) on settlement reclassified to net income		—	—	(907)	—	—	—
Prior service credit (cost) arising during the year		—	—	—	—	(399)	—
Amortization of net actuarial (gains) losses		2,284	524	2,218	1,444	2,766	1,679
Amortization of prior service (credit) cost		79	(1,333)	81	524	(25)	524
Change in deferred taxes		—	—	—	—	(1,462)	—
Foreign exchange adjustment		(259)	—	885	—	203	—
Total changes recognized in other comprehensive income (loss)		(3,658)	4,110	8,495	33,423	15,855	3,366

Schedule of actuarial assumptions

Actuarial Assumptions


	Year ended
	December 31, 2023				December 31, 2022				December 31, 2021
	Pension plans		Post- retirement medical benefit plan		Pension plans		Post- retirement medical benefit plan		Pension plans		Post- retirement medical benefit plan
Actuarial assumptions used to determine annual benefit expense
Weighted average discount rate	5.20	%	5.37	%	2.30	%	2.88	%	1.90	%	2.53	%
Weighted average rate of compensation increases1	3.00	%	N/A		3.00	%	N/A		2.20	%	N/A
Weighted average expected long-term rate of return on plan assets	6.30	%	N/A		4.45	%	N/A		3.65	%	N/A
Weighted average annual medical cost increase rate	N/A		6.9% to 4.5% in 2040		N/A		7.0% to 4.5% in 2040		N/A		7.2% to 4.5% in 2040

Actuarial assumptions used to determine benefit obligations at end of year
Weighted average discount rate	4.85	%	5.16	%	5.20	%	5.37	%	2.30	%	2.88	%
Weighted average rate of compensation increases1	3.00	%	N/A		3.00	%	N/A		3.00	%	N/A
Weighted average annual medical cost increase rate	N/A		6.8% to 4.5% in 2040		N/A		6.9% to 4.5% in 2040		N/A		7.0% to 4.5% in 2040
1Only the UK subsidiary plan is impacted by potential future compensation increases.

Schedule of allocation of plan assets


	December 31, 2023				December 31, 2022
Weighted average actual and target asset allocations of the pension plans by asset category	Actual allocation		Target allocation		Actual allocation		Target allocation
Debt securities (including debt mutual funds)	70	%	74	%	71	%	74	%
Equity securities (including equity mutual funds)	20	%	9	%	19	%	9	%
Other	10	%	17	%	10	%	17	%
Total	100	%	100	%	100	%	100	%

The following table presents the fair value of the plans' assets by category and level of inputs used in their respective fair value determination as described in "Note 2: Significant accounting policies", except the level 3 security, for which the valuation determination is described following the below table:


	December 31, 2023				December 31, 2022
	Fair value determination				Fair value determination
	Level 1	Level 2	Level 3	Total fair value	Level 1	Level 2	Level 3	Total fair value
US government and federal agencies	—	34,278	—	34,278	—	35,332	—	35,332
Non-US governments debt securities	—	44,383	—	44,383	—	43,728	—	43,728
Corporate debt securities	—	17,604	—	17,604	—	18,050	—	18,050
Equity securities and mutual funds	926	25,986	—	26,912	954	25,172	—	26,126
Other	410	1,244	11,822	13,476	600	2,504	10,954	14,058
Total fair value of plans' assets	1,336	123,495	11,822	136,653	1,554	124,786	10,954	137,294

Schedule of expected benefit payments

Estimated 2024 Bank contribution to and estimated benefit payments for the next ten years under the pension and post-retirement medical benefit plans are as follows:


	Pension plans	Post- retirement medical benefit plan
Estimated Bank contributions for the full year ending December 31, 2024	—	5,092
Estimated benefit payments by year:
2024	6,600	5,092
2025	6,700	5,321
2026	6,500	5,542
2027	7,100	5,742
2028	6,500	5,903
2029-2033	32,800	31,314