Defined Benefit Post-Retirement Plans

6 Months Ended

Jun. 30, 2024

Defined Benefit Post-Retirement Plans [Abstract]

Defined Benefit Post-Retirement Plans

8. Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at June 30, 2024. Benefits paid from the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks, bonds and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. These post-retirement benefits are referred to herein as “Other Benefits.”

Accounting standards require an employer to: (1) recognize the overfunded or underfunded status of defined benefit post-retirement plans, which is measured as the difference between plan assets at fair value and the benefit obligation, as an asset or liability in its balance sheet; (2) recognize changes in that funded status in the year in which the changes occur through comprehensive income; and (3) measure the defined benefit plan assets and obligations as of the date of its year-end balance sheet.

The Company made no voluntary contributions to the Pension Benefits and Other Benefits plans during the three and six months ended June 30, 2024 and 2023.

The components of expense for Pension Benefits and Other Benefits are set forth below:

	Pension Benefits						Other Benefits
	Three Months Ended June 30,						Three Months Ended June 30,
(In thousands)	2024			2023			2024			2023
Components of net periodic cost (benefit):
Service cost	$	513		$	482		$	1		$	1
Interest cost		1,006			1,010			55			56
Expected return on plan assets		(1,982	)		(1,853	)		-			-
Net amortization		1,452			670			(1	)		(21	)
Total net periodic cost (benefit)	$	989		$	309		$	55		$	36

	Pension Benefits						Other Benefits
	Six Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2024			2023			2024			2023
Components of net periodic cost (benefit):
Service cost	$	1,027		$	964		$	2		$	2
Interest cost		2,011			2,020			110			112
Expected return on plan assets		(3,965	)		(3,706	)		-			-
Net amortization		1,905			1,340			(2	)		(42	)
Total net periodic cost (benefit)	$	978		$	618		$	110		$	72

The service cost component of the net periodic cost (benefit) is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.