Components of Net Periodic Pension Cost

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Components of Net Periodic Pension Cost

Note 10. Components of Net Periodic Pension Cost

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

	Three Months Ended						Affected Line Item in the Consolidated
	June 30,						Statements of Income
	2018			2017
	(dollars in thousands)
Service cost	$	-		$	-
Interest cost		107			120		Other components of net periodic pension expense
Expected return on plan assets		(192	)		(160	)	Other components of net periodic pension expense
Net amortization		92			103		Other components of net periodic pension expense
Total periodic pension cost	$	7		$	63
	Six Months Ended						Affected Line Item in the Consolidated
	June 30,						Statements of Income
	2018			2017
	(dollars in thousands)
Service cost	$	-		$	-
Interest cost		214			239		Other components of net periodic pension expense
Expected return on plan assets		(383	)		(320	)	Other components of net periodic pension expense
Net amortization		183			206		Other components of net periodic pension expense
Total periodic pension cost	$	14		$	125

Effective January 1, 2018, the Company implemented ASU 2017-07, “Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under ASU 2017-07, the FASB requires employers to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The table above details the affected line items within the Consolidated Statements of Income related to the net periodic pension costs for the following periods.

This ASU is also required to be applied retrospectively to all periods presented. The following table summarizes the impact of retrospective application to the consolidated statement of condition for the three and six months ended June 30, 2017:

	Three Months		Six Months
	Ended		Ended
	June 30, 2017		June 30, 2017
	(dollars in thousands)
Other components of net periodic pension expense
As previously reported	$	-	$	-
As reported under the new guidance		63		125
Salaries and employee benefits
As previously reported	$	8,632	$	16,838
As reported under the new guidance		8,569		16,713

Contributions

The Company made a $2.0 million contribution during the three months ended March 31, 2018. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2018. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.