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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Employee Benefit Plans
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. The Profit Sharing Plan gives qualified employees the option to contribute up 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. In addition, the Company makes a matching contribution of 4% of the eligible employee's compensation. On an annual basis, the Company automatically contributes 2% of the employee's eligible compensation regardless of voluntary contributions made by the employee. There is also a 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 contributions vest immediately, while the automatic and discretionary components vest over six years.
Profit Sharing Plan
(Dollar amounts in thousands)
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
Profit sharing expense(1)
 
$
7,803

 
$
7,346

 
$
6,171

Company dividends received by the Profit Sharing Plan
 
$
457

 
$
441

 
$
494

Company shares held by the Profit Sharing Plan at the end of the year:
 
 
 
 
 
 
Number of shares
 
1,047,213

 
1,079,975

 
1,175,858

Fair value
 
$
20,745

 
$
25,930

 
$
29,667

(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. Effective on January 1, 2014, benefit accruals were frozen under the Pension Plan.
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,
 
 
2018
 
2017
Accumulated benefit obligation
 
$
58,271

 
$
67,923

Change in projected benefit obligation
 
 
 
 
Beginning balance
 
$
67,923

 
$
68,959

Service cost
 
—

 
—

Interest cost
 
2,031

 
1,712

Settlements
 
(7,199
)
 
(6,271
)
Actuarial (gain) loss
 
(3,717
)
 
4,240

Benefits paid
 
(767
)
 
(717
)
Ending balance
 
$
58,271

 
$
67,923

Change in fair value of plan assets
 
 
 
 
Beginning balance
 
$
66,159

 
$
65,189

Actual return on plan assets
 
(6,983
)
 
7,958

Benefits paid
 
(767
)
 
(717
)
Employer contributions
 
25,000

 
—

Settlements
 
(7,199
)
 
(6,271
)
Ending balance
 
$
76,210

 
$
66,159

Funded status recognized in the Consolidated Statements of Financial Condition
 
 
 
 
Noncurrent asset (liability)
 
$
17,939

 
$
(1,764
)
Amounts recognized in accumulated other comprehensive loss
 
 
 
 
Prior service cost
 
$
—

 
$
—

Net loss
 
29,345

 
25,495

Net amount recognized
 
$
29,345

 
$
25,495

Actuarial losses included in accumulated other comprehensive loss as a percent of
 
 
 
 
Accumulated benefit obligation
 
50.4
%
 
37.5
%
Fair value of plan assets
 
38.5
%
 
38.5
%
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
 
426

 
561

Net amount expected to be recognized
 
$
426

 
$
561

Weighted-average assumptions at the end of the year used to determine the
  actuarial present value of the projected benefit obligation
 
 
 
 
Discount rate
 
4.10
%
 
3.45
%

To estimate the interest cost component of the net periodic benefit expense for the Pension Plan, the Company utilizes a full yield curve approach by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. 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 average remaining life expectancy of the Pension Plan participants. Actuarial losses included in accumulated other comprehensive loss as of December 31, 2018 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,
 
 
2018
 
2017
 
2016
Components of net periodic benefit cost
 
 
 
 
 
 
Interest cost
 
$
2,031

 
$
1,712

 
$
1,635

Expected return on plan assets
 
(3,820
)
 
(3,802
)
 
(4,057
)
Recognized net actuarial loss
 
533

 
591

 
571

Amortization of prior service cost
 
—

 
—

 
—

Recognized settlement loss
 
2,703

 
2,480

 
1,338

Net periodic cost (income)
 
1,447

 
981

 
(513
)
Other changes in plan assets and benefit obligations recognized as
  a charge to other comprehensive (loss) income
Net loss for the period
 
(7,086
)
 
(83
)
 
(3,911
)
Amortization of net loss
 
3,236

 
3,071

 
1,909

Total unrealized (loss) gain
 
(3,850
)
 
2,988

 
(2,002
)
Total recognized in net periodic pension cost and other
  comprehensive (loss) income
 
$
(5,297
)
 
$
2,007

 
$
(1,489
)
Weighted-average assumptions used to determine the net periodic
  cost
Discount rate
 
3.45
%
 
3.86
%
 
3.99
%
Expected return on plan assets
 
5.75
%
 
6.25
%
 
6.50
%

Pension Plan Asset Allocation
(Dollar amounts in thousands)
 
 
 
 
 
 
Percentage of Plan Assets
as of December 31,
 
 
Target Allocation
 
Fair Value of Plan Assets(1)
 
 
 
2018
 
2017
Asset Category
 
 
 
 
 
 
 
 
Equity securities
 
50 - 60%
 
$
46,772

 
61
%
 
60
%
Fixed income
 
30 - 48%
 
27,887

 
37
%
 
35
%
Cash equivalents
 
2 - 10%
 
1,551

 
2
%
 
5
%
Total
 
 
 
$
76,210

 
100
%
 
100
%
(1) 
Additional information regarding the fair value of Pension Plan assets as of December 31, 2018 can be found in Note 21, "Fair Value."
As of December 31, 2018, the equity securities category allocation was outside the target range due to improved market performance. Subsequent to December 31, 2018, the Pension Plan assets were rebalanced and all asset categories were within the target allocation.
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 and asset allocation strategies, the Company considers expected returns and the volatility associated with different strategies. The investment strategies established by the Company's Retirement Plan Committee provide 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.
The following table presents estimated future pension benefit payments under the Pension Plan for retirees already receiving benefits and future retirees, assuming they retire and begin receiving unreduced benefits as soon as they are eligible.
Estimated Future Pension Benefit Payments
(Dollar amounts in thousands)
 
 
Total
Year ending December 31,
 
 
2019
 
$
5,589

2020
 
5,000

2021
 
4,681

2022
 
4,978

2023
 
3,827

2024-2027
 
19,488