ASSOCIATE BENEFIT PLANS

3 Months Ended

Mar. 31, 2021

Postemployment Benefits [Abstract]

ASSOCIATE BENEFIT PLANS

11. ASSOCIATE BENEFIT PLANS

Postretirement Medical Benefits

The Company shares certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for the Company. Effective March 31, 2014, the Company changed the eligibility of this plan to include only those Associates who have achieved ten years of service as of March 31, 2014. The Company uses the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in its calculation.

The Company accounts for its obligations under the provisions of ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires the recognition of the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year. The Company recognizes its service cost in Salaries, benefits and other compensation and the other components of net periodic benefit cost in Other operating expenses in the unaudited Consolidated Statements of Income.

The following table presents the components of net periodic benefit cost related to postretirement medical benefits plan.

	Three months ended March 31,
(Dollars in thousands)	2021		2020
Service cost	$	17	$	15
Interest cost	13		17
Prior service cost amortization	(19)		(19)
Net gain recognition	(5)		(9)
Net periodic cost (benefit)	$	6	$	4

Alliance Associate Pension Plan

During the fourth quarter of 2015, the Company completed the acquisition of Alliance Bancorp, Inc. of Pennsylvania (Alliance). At the time of the acquisition, the Company assumed the Alliance pension plan offered to its current Associates. During the fourth quarter of 2018, the Company notified the Alliance pension plan participants, the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) of its intention to terminate the plan, and received IRS and PBGC approval in the first quarter of 2020. The Company completed the termination and contributed $0.5 million to the plan to settle the obligation in June 30, 2020.

The following table presents the components of net periodic benefit cost related to the Alliance Associate Pension Plan. There was no net periodic benefit cost during the three months ended March 31, 2021.

	Three months ended
(Dollars in thousands)	March 31, 2020
Service cost	$	10
Interest cost	63
Expected return on plan assets	(117)
Net periodic cost (benefit)	$	(44)

Beneficial Associate Pension and other postretirement benefits plans

On March 1, 2019, the Company closed its acquisition of Beneficial Bancorp, Inc. (Beneficial). At the time of the acquisition, the Company assumed the pension plan covering certain eligible Beneficial Associates. The plan was frozen in 2008. The following table presents the components of net periodic benefit cost related to the Beneficial pension benefits and other postretirement benefit plans.

	Three months ended March 31, 2021
(Dollars in thousands)	Pension Benefits		Other Postretirement Benefits
Service cost	$	—	$	14
Interest cost	530		77
Expected return on plan assets	(1,705)		—
Prior service cost amortization	—		(3)
Net loss (gain) recognition	6		—
Net periodic (benefit) cost	$	(1,169)	$	88

	Three months ended March 31, 2020
(Dollars in thousands)	Pension Benefits		Other Postretirement Benefits
Service cost	$	—	$	28
Interest cost	715		138
Expected return on plan assets	(1,594)		—
Net loss (gain) recognition	1		(15)
Net periodic (benefit) cost	$	(878)	$	151