Defined Pension Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Defined Pension Plans

Defined Pension Plans

The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Plan’s benefits were frozen for all remaining participants as of February 28, 2021. As such, subsequent to February 28, 2021, there is no service cost associated with the Plan. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs:

(In thousands)	Estimated 2022		Actual 2021
Service cost – benefits earned during the year	$	—	$	1,002
Interest cost on projected benefit obligations	3,290		3,076
Expected return on plan assets	(5,860)		(6,310)
Net amortization	—		393
Net periodic pension benefit	$	(2,570)	$	(1,839)

The Company recorded a net periodic benefit of $613,000 and $1,231,000 for the three and six-month periods ended June 30, 2022, respectively, and $691,000 and $418,000 for the three and six-month period ended June 30, 2021, respectively. Pension costs decreased during the six-month period ended June 30, 2022 due to the Plan being frozen as of February 28, 2021. The Company made no contributions to the Plan during the six-month period ended June 30, 2022 and is evaluating the amount of contributions, if any, for the remainder of 2022.

In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2021 and an estimate for 2022:

(In thousands)	Estimated 2022		Actual 2021
Service cost – benefits earned during the year	$	—	$	147
Interest cost on projected benefit obligation	318		291
Net amortization	108		203
Net periodic pension cost	$	426	$	641

Supplemental executive retirement plan costs recorded to expense were $106,000 and $213,000 for the three and six-month periods ended June 30, 2022, respectively, and $161,000 and $321,000 for the three and six-month periods ended June 30, 2021, respectively.