Pension Plans |
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Pension Plans | Note 11 – Pension Plans
The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012.
The Company recorded periodic pension cost (income) totaling $136,000 and ($202,000) for the three months ended September 30, 2018 and 2017, respectively. The following table contains the components of the pension cost (income).
The Company recorded periodic pension cost (income) totaling $408,000 and ($605,000) for the nine months ended September 30, 2018 and 2017, respectively. The following table contains the components of the pension cost (income).
The service cost component of net periodic pension cost (income) is included in salaries and benefits expense and all other components of net periodic pension cost (income) are included in other noninterest expense.
The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company does not expect to contribute to the Pension Plan in 2018.
The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company. |