EMPLOYEE BENEFIT PLANS

Profit Sharing Plan

The Company has a defined contribution retirement savings plan (the "Profit Sharing Plan") that covers qualified employees who meet certain eligibility requirements. During 2014, the Profit Sharing Plan was amended to give qualified employees the option to increase contributions from 45% (15% for certain highly compensated employees) to 100% (including certain highly compensated employees) of their pre-tax base salary through salary deductions under Section 401(k) of the Internal Revenue Code. At the employees' direction, employee contributions are invested among a variety of investment alternatives. The amendment also increased the Company's matching contribution from a maximum of 2% to 4% of the eligible employee's compensation. In addition, pursuant to the amendment, the Company makes certain automatic and transition contributions. On an annual basis, the Company automatically contributes 2% of the employee's eligible compensation regardless of voluntary contributions made by the employee. Transition contributions of up to 4% were made through December 31, 2015 for certain employees who were active participants in the defined benefit retirement plan (the "Pension Plan"), which was frozen in 2013. The amendment did not change the discretionary profit sharing component of the Profit Sharing Plan, which permits the Company to distribute up to 15% of the employee's compensation. The Company's matching and transition contributions vest immediately, while the automatic and discretionary components vest over six years.

Profit Sharing Plan

(Dollar amounts in thousands)



	Years Ended December 31,
	2015		2014		2013
Profit sharing expense ⁽¹⁾	$	6,919	$	6,354	$	2,914
Company dividends received by the Profit Sharing Plan	$	466	$	428	$	159
Company shares held by the Profit Sharing Plan at the end of the year:
Number of shares	1,277,567		1,364,558		1,426,708
Fair value	$	23,546	$	23,348	$	25,010


⁽¹⁾	Included in retirement and other employee benefits in the Consolidated Statements of Income.

Pension Plan

The Company sponsors the Pension Plan which provides for retirement benefits based on years of service and compensation levels of the participants. The Pension Plan covers employees who met certain eligibility requirements and were hired before April 1, 2007, the date it was amended to eliminate new enrollment of new participants. During 2013, the Board approved an amendment to freeze benefit accruals under the Pension Plan effective on January 1, 2014.

Actuarially determined pension costs are charged to current operations and included in retirement and other employee benefits in the Consolidated Statements of Income. The Company's funding policy is to contribute amounts to the Pension Plan that are sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 plus additional amounts as the Company deems appropriate.

Pension Plan Cost and Obligations

(Dollar amounts in thousands)



	As of December 31,
	2015			2014
Accumulated benefit obligation	$	67,185		$	67,283
Change in projected benefit obligation:
Beginning balance	$	67,283		$	61,292
Service cost	—			—
Interest cost	2,334			2,346
Settlements	(7,320		)	(6,502		)
Actuarial loss	5,336			10,508
Benefits paid	(448		)	(361		)
Ending balance	$	67,185		$	67,283
Change in fair value of plan assets:
Beginning balance	$	72,193		$	74,370
Actual return on plan assets	478			4,686
Benefits paid	(448		)	(361		)
Settlements	(7,320		)	(6,502		)
Ending balance	$	64,903		$	72,193
Funded status recognized in the Consolidated Statements of Financial Condition:
Noncurrent (liability) asset	$	(2,282	)	$	4,910
Amounts recognized in accumulated other comprehensive loss:
Prior service cost	$	—		$	—
Net loss	26,481			19,911
Net amount recognized	$	26,481		$	19,911
Actuarial losses included in accumulated other comprehensive loss as a percent of:
Accumulated benefit obligation	39.4		%	29.6		%
Fair value of plan assets	40.8		%	27.6		%
Amounts expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost in the next fiscal year:
Prior service cost	$	—		$	—
Net loss	516			401
Net amount expected to be recognized	$	516		$	401
Weighted-average assumptions at the end of the year used to determine the actuarial present value of the projected benefit obligation:
Discount rate	3.99		%	3.60		%

On December 31, 2015, the Company refined the calculation of the interest component of net periodic benefit expense for its pension plan. Previously, the Company estimated the interest cost component utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the end of the period. Under the refined method, the Company utilized a full yield curve approach to estimate the component by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to more closely match the projected benefit cash flows and the corresponding yield curve spot rates, and to provide a more precise measurement of interest costs. This change had no impact on the measurement of the Company's total benefit obligations recorded as of December 31, 2015, or any other previous period. The Company will account for this change as a change in estimate that is inseparable from a change in accounting principle, and, accordingly, will recognize its effect prospectively beginning in 2016.

To the extent the cumulative actuarial losses included in accumulated other comprehensive loss exceed 10% of the greater of the accumulated benefit obligation or the market-related value of the Pension Plan assets, it is the Company's policy to amortize the Pension Plan's net actuarial losses into income over the future working life of the Pension Plan participants. In connection with the freeze of benefit accruals under the Pension Plan in 2013, the Company changed its policy to amortize net actuarial losses into income over the average remaining life expectancy of the Pension Plan participants. Actuarial losses included in accumulated other comprehensive loss as of December 31, 2015 exceeded 10% of the accumulated benefit obligation and the fair value of Pension Plan assets. The amortization of net actuarial losses is a component of the net periodic benefit cost. Amortization of the net actuarial losses and prior service cost included in other comprehensive (loss) income is not expected to have a material impact on the Company's future results of operations, financial position, or liquidity.

Net Periodic Benefit Pension Cost

(Dollar amounts in thousands)



	Years Ended December 31,
	2015				2014				2013
Components of net periodic benefit cost:
Service cost	$	—			$	—			$	2,600
Interest cost	2,334				2,346				2,414
Expected return on plan assets	(4,333		)		(4,931		)		(4,299		)
Recognized net actuarial loss	367				249				1,453
Amortization of prior service cost	—				—				1
Recognized settlement loss	2,254				1,377				—
Net periodic cost (income)	622				(959		)		2,169
Other changes in plan assets and benefit obligations recognized as a charge to other comprehensive (loss) income:
Net (loss) gain for the period	(9,191		)		(10,752		)		16,146
Amortization of prior service cost	—				—				1
Amortization of net loss	2,621				1,625				1,453
Total unrealized (loss) gain	(6,570		)		(9,127		)		17,600
Total recognized in net periodic pension cost and other comprehensive (loss) income	$	(7,192	)		$	(8,168	)		$	15,431
Weighted-average assumptions used to determine the net periodic cost:
Discount rate	3.60		%		4.30		%		3.40		%
Expected return on plan assets	6.50		%		7.25		%		7.25		%
Rate of compensation increase	N/A			⁽¹⁾	N/A			⁽¹⁾	2.50		%

N/A – Not applicable.


⁽¹⁾	The rate of compensation increase is no longer applicable in determining the net periodic cost due to the amendment to freeze benefit accruals, which is discussed above.

Pension Plan Asset Allocation

(Dollar amounts in thousands)



				Percentage of Plan Assets as of December 31,
	Target Allocation	Fair Value of Plan Assets ⁽¹⁾		Percentage of Plan Assets as of December 31,
	Target Allocation	Fair Value of Plan Assets ⁽¹⁾		2015		2014
Asset Category:
Equity securities	50 - 60%	$	38,314	59	%	59	%
Fixed income	30 - 48%	22,457		35	%	36	%
Cash equivalents	2 - 10%	4,132		6	%	5	%
Total		$	64,903	100	%	100	%


⁽¹⁾	Additional information regarding the fair value of Pension Plan assets as of December 31, 2015 can be found in Note 22, "Fair Value."

The expected long-term rate of return on Pension Plan assets represents the average rate of return expected to be earned over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, the Company considers long-term returns based on historical market data and projections of future returns for each asset category, as well as historical actual returns on the Pension Plan assets with the assistance of its independent actuarial consultant. Using this reference data, the Company develops a forward-looking return expectation for each asset category and a weighted-average expected long-term rate of return based on the target asset allocation.

The investment objective of the Pension Plan is to maximize the return on Pension Plan assets over a long-term horizon to satisfy the Pension Plan obligations. In establishing its investment policies and asset allocation strategies, the Company considers expected returns and the volatility associated with different strategies. The policy established by the Company's Retirement Plan Committee provides for growth of capital with a moderate level of volatility by investing assets according to the target allocations stated above and reallocating those assets as needed to stay within those allocations. Investments are weighted toward publicly traded securities. Investment strategies that include alternative asset classes, such as private equity hedge funds and real estate, are generally avoided. Under the advisement of a certified investment advisor, the Committee reviews the investment policy on a quarterly basis to determine if any adjustments to the policy or investment strategy are necessary.

Estimated future pension benefit payments for fiscal years ending December 31, 2016 through 2025 are as follows.

Estimated Future Pension Benefit Payments

(Dollar amounts in thousands)



	Total
Year ending December 31,
2016	$	11,175
2017	7,052
2018	5,755
2019	5,241
2020	4,538
2021-2025	19,363