Retirement Plans

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

The Corporation has a noncontributory defined benefit RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes.

The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans.

The First Staunton acquisition closed on February 14, 2020, and the employees who met the required criteria became eligible to participate in the RAP on February 15, 2020, with their vesting service credit based on their prior hours of service with First Staunton. See Note 2 for additional information on the First Staunton acquisition.

The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended Sep 30,				Nine Months Ended Sep 30,
($ in Thousands)	2021		2020		2021		2020
Components of Net Periodic Benefit Cost
RAP
Service cost	$	1,684	$	1,853	$	5,835	$	6,183
Interest cost	1,682		2,124		4,927		6,139
Expected return on plan assets	(6,395)		(6,386)		(19,256)		(19,196)
Amortization of prior service cost	(19)		(18)		(55)		(55)
Amortization of actuarial loss (gain)	1,346		1,313		3,446		2,923
Total net periodic pension cost	$	(1,701)	$	(1,114)	$	(5,103)	$	(4,006)
Postretirement Plan
Interest cost	$	13	$	20	$	39	$	59
Amortization of prior service cost	(19)		(19)		(56)		(56)
Total net periodic benefit cost	$	(6)	$	1	$	(17)	$	2

The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income.

The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions during the nine months ended September 30, 2021 and 2020.