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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Defined Benefit Plan
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 Company froze the benefits of the Plan as of February 28, 2021. As such, subsequent to February 28, 2021, there is no service cost associated with the Plan.
A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:
(In thousands)20232022
Projected benefit obligation:
Balance, January 1 $85,433 $117,323 
Interest cost 4,314 3,293 
Actuarial gain865 (31,982)
Benefits paid (3,485)(3,201)
Balance, December 31
$87,127 $85,433 
Plan assets:
Fair value, January 1 $83,394 $114,136 
Actual investment return 8,097 (26,820)
Expenses paid from plan assets(1,252)(721)
Benefits paid (3,485)(3,201)
Fair value, December 31
$86,754 $83,394 
Funded status:
Accrued pension liability $(373)$(2,039)
The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2023, 2022 and 2021, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2023 and 2022, the Pri-2012 Mortality Table and MP-2021 Mortality Improvement Scale were used. For 2021, the Pri-2012 Mortality Table and MP-2021 Mortality Improvement Scale were used.
202320222021
Weighted average discount rate 5.05 %5.25 %2.85 %
Rate of increase in compensation levels N/AN/A(a)
(a)6.0% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $87.1 million and $85.4 million as of December 31, 2023 and 2022, respectively. The Company made no contributions during 2023 or 2022 to the Plan. The Company has not determined if it will make a contribution to the Plan in 2024. The following pension benefit payments, as appropriate, are expected to be paid by the Plan:
Amount
2024$4,328,000 
20254,532,000 
20264,758,000 
20274,968,000 
20285,161,000 
2029-203328,280,000 
The Plan’s net periodic pension cost (benefit) included the following components:
For the Year Ended
December 31,
(In thousands)202320222021
Service cost – benefits earned during the year $— $— $1,002 
Interest cost on projected benefit obligations 4,314 3,293 3,076 
Expected return on plan assets (3,735)(5,857)(6,310)
Net amortization and deferral 154 — 393 
Net periodic pension cost (benefit)$733 $(2,564)$(1,839)
The following represent the major assumptions used to determine the net periodic pension cost (benefit) of the Plan:
202320222021
Weighted average discount rate 5.25 %2.85 %2.55 %
Rate of increase in compensation levels N/AN/A(a )
Expected long-term rate of return on assets 6.00 %6.00 %6.00 %
(a)6.0% graded down to 3.25% over the first seven years of service.
For 2023 and 2022, the Pri-2012 Mortality Table and the MP-2021 Mortality Improvement Table were used. For 2021, the Pri-2012 Mortality Table and the MP-2020 Mortality Improvement Table were used.
The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 86% fixed income, and 14% equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity
components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:
Asset Class% of Total PortfolioOne-Year Nominal
Return		Annual Standard
Deviation
Core Fixed Income 86.0 %4.52 %4.30 %
Global Equity14.0 %8.54 %18.12 %
Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 5.00%.
A summary of the fair value measurements by type of asset is as follows:
Fair Value Measurements as of December 31,
20232022
(In thousands)TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)		TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)
Cash $614 $614 $— $566 $566 $— 
Real estate investment trusts2,849 — 2,849 7,120 — 7,120 
Equity securities
U.S. Small/Mid Cap Growth 987 — 987 2,055 — 2,055 
Non-U. S. Core 3,811 — 3,811 7,822 — 7,822 
U.S. Large Cap Passive 3,333 — 3,333 8,319 — 8,319 
Emerging Markets 1,391 — 1,391 3,000 — 3,000 
Fixed Income
U.S. Core 69,710 — 69,710 51,756 — 51,756 
Opportunistic 4,059 — 4,059 2,756 — 2,756 
Total $86,754 $614 $86,140 $83,394 $566 $82,828 
Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.
A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows:
December 31,
(In thousands)20232022
Benefit obligation:
Balance, January 1 $9,579 $12,420 
Interest cost 472 318 
Benefits paid (400)(348)
Actuarial gain(150)(2,811)
Balance, December 31
$9,501 $9,579 
The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2023, 2022 and 2021, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve.
202320222021
Weighted average discount rate 4.95 %5.15 %2.65 %
Rate of increase in compensation levels N/AN/A(a)
(a)6.00% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $9.5 million and $9.6 million as of December 31, 2023 and 2022, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $400,000 in 2023, $348,000 in 2022, and $282,000 in 2021. Expected future benefits payable by the Company over the next ten years are as follows:
Amount
2024$792,000 
2025790,000 
2026787,000 
2027783,000 
2028778,000 
2029-2033$3,754,000 
Net periodic pension cost related to the SERP included the following components:
For the Year Ended December 31,
(In thousands)202320222021
Service cost – benefits earned during the year $— $— $147 
Interest cost on projected benefit obligations 472 318 291 
Net amortization and deferral — 108 203 
Net periodic pension cost $472 $426 $641 
The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:
The PlanSERP
(In thousands)2023202220232022
Prior service cost $— $— $— $— 
Net actuarial loss (gain) 4,434 6,833 (287)(136)
Total $4,434 $6,833 $(287)$(136)
The estimated pretax prior service cost and net actuarial loss (gain) in accumulated other comprehensive loss at December 31, 2023 expected to be recognized as components of net periodic benefit cost in 2024 for both the Plan and SERP is $0.
The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in personnel expense in the consolidated statements of income in 2023, 2022, and 2021 was $6.8 million, $7.9 million, and $6.4 million, respectively.
The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2023, 2022 and 2021 were $5.1 million, $4.6 million, and $3.5 million, respectively.