Postretirement Benefit Plans (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Defined Benefit Postretirement Health And Life Coverage [Member] |
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule of Net Funded Status |
The following tables provide a reconciliation of the changes in the plan’s health and life insurance benefit obligations and fair value of plan assets for the years ended December 31, 2020 and 2019, and a statement of the funded status at December 31, 2020 and 2019.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
Change in benefit obligations: |
|
2020 |
|
|
2019 |
|
|
Benefit obligations, January 1 |
|
$ |
404 |
|
|
$ |
475 |
|
|
Service cost |
|
|
3 |
|
|
|
3 |
|
|
Interest cost |
|
|
13 |
|
|
|
17 |
|
|
Change in experience |
|
|
45 |
|
|
|
(13 |
) |
|
Change in assumptions |
|
|
27 |
|
|
|
34 |
|
|
Benefit payments |
|
|
(150 |
) |
|
|
(112 |
) |
|
Benefit obligations, December 31 |
|
$ |
342 |
|
|
$ |
404 |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets, January 1 |
|
$ |
— |
|
|
$ |
— |
|
|
Employer contributions |
|
|
150 |
|
|
|
112 |
|
|
Benefit payments |
|
|
(150 |
) |
|
|
(112 |
) |
|
Fair value of plan assets, December 31 |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at year end |
|
$ |
(342 |
) |
|
$ |
(404 |
) |
|
| Schedule of Amounts Recognized in Balance Sheet |
The amount recognized in other liabilities on the consolidated balance sheets at December 31, 2020 and 2019, is as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Accrued benefit liability |
|
$ |
342 |
|
|
$ |
404 |
|
|
| Schedule of Amounts Recognized in Other Comprehensive (Loss) Income |
The amounts recognized in accumulated other comprehensive loss consist of:
|
(Dollars in thousands) |
|
December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
Net loss (gain), pretax |
|
$ |
22 |
|
|
$ |
(50 |
) |
|
Net prior service cost, pretax |
|
|
(40 |
) |
|
|
(64 |
) |
|
| Schedule of Net Periodic Benefit (Income) Costs |
The components of net periodic postretirement benefit (income) cost for 2020, 2019 and 2018 are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Service cost |
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
4 |
|
|
Interest cost |
|
|
13 |
|
|
|
17 |
|
|
|
17 |
|
|
Amortization of prior service cost |
|
|
(25 |
) |
|
|
(25 |
) |
|
|
(25 |
) |
|
Amortization of net (gain) or loss |
|
|
— |
|
|
|
(5 |
) |
|
|
(1 |
) |
|
Net periodic postretirement benefit (income) cost |
|
$ |
(9 |
) |
|
$ |
(10 |
) |
|
$ |
(5 |
) |
|
| Schedule of Assumptions Used |
Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2020 and 2019 are as follows:
|
Weighted-average assumptions: |
|
2020 |
|
|
2019 |
|
|
Discount rate |
|
|
2.25 |
% |
|
|
3.00 |
% |
|
Rate of compensation increase |
|
|
2.00 |
% |
|
|
2.00 |
% |
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 are as follows:
|
Weighted-average assumptions: |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Discount rate |
|
|
3.00 |
% |
|
|
4.00 |
% |
|
|
3.50 |
% |
|
Rate of compensation increase |
|
|
2.00 |
% |
|
|
3.00 |
% |
|
|
2.50 |
% |
|
| Schedule of Health Care Cost Trend Rates |
Assumed health care cost trend rates at December 31, 2020, 2019 and 2018 are as follows:
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Health care cost trend rate assumed for next year |
|
|
5.50 |
% |
|
|
5.50 |
% |
|
|
5.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |
|
|
5.40 |
% |
|
|
5.40 |
% |
|
|
5.40 |
% |
|
Year that the rate reaches the ultimate trend rate |
|
2024 |
|
|
2024 |
|
|
2022 |
|
|
| Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates |
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. At December 31, 2020, a one-percentage-point change in assumed health care cost trend rates would have the following effects:
|
(Dollars in thousands) |
|
One-Percentage Point |
|
|
|
|
Increase |
|
|
Decrease |
|
|
Effect on total of service and interest cost |
|
$ |
— |
|
|
$ |
— |
|
|
Effect on accumulated postretirement benefit obligation |
|
|
5 |
|
|
|
(7 |
) |
|
| Schedule of Expected Benefit Payments |
Mid Penn expects to contribute $36,000 to its life and health benefit plans in 2021. The following table shows the estimated benefit payments for future periods.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
1/1/2021 to 12/31/2021 |
|
$ |
36 |
|
|
1/1/2022 to 12/31/2022 |
|
|
37 |
|
|
1/1/2023 to 12/31/2023 |
|
|
34 |
|
|
1/1/2024 to 12/31/2024 |
|
|
31 |
|
|
1/1/2025 to 12/31/2025 |
|
|
32 |
|
|
1/1/2026 to 12/31/2030 |
|
|
170 |
|
|
|
|
|
|
|
|
| Director's Retirement Plan [Member] |
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule of Net Funded Status |
The following tables provide a reconciliation of the changes in the directors’ defined benefit plan’s benefit obligations and fair value of plan assets for the years ended December 31, 2020 and 2019, and a statement of the status at December 31, 2020 and 2019. This Plan is unfunded.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
Change in benefit obligations: |
|
2020 |
|
|
2019 |
|
|
Benefit obligations, January 1 |
|
$ |
1,077 |
|
|
$ |
1,100 |
|
|
Service cost |
|
|
49 |
|
|
|
51 |
|
|
Interest cost |
|
|
31 |
|
|
|
42 |
|
|
Actuarial loss (gain) |
|
|
7 |
|
|
|
(17 |
) |
|
Change in assumptions |
|
|
65 |
|
|
|
(12 |
) |
|
Benefit payments |
|
|
(87 |
) |
|
|
(87 |
) |
|
Benefit obligations, December 31 |
|
$ |
1,142 |
|
|
$ |
1,077 |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets, January 1 |
|
$ |
— |
|
|
$ |
— |
|
|
Employer contributions |
|
|
87 |
|
|
|
87 |
|
|
Benefit payments |
|
|
(87 |
) |
|
|
(87 |
) |
|
Fair value of plan assets, December 31 |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at year end |
|
$ |
(1,142 |
) |
|
$ |
(1,077 |
) |
|
| Schedule of Amounts Recognized in Balance Sheet |
Amounts recognized in other liabilities on the consolidated balance sheet at December 31, 2020 and 2019 are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Accrued benefit liability |
|
$ |
1,142 |
|
|
$ |
1,077 |
|
|
| Schedule of Amounts Recognized in Other Comprehensive (Loss) Income |
Amounts recognized in accumulated other comprehensive loss consist of:
|
(Dollars in thousands) |
|
December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
Net prior service cost, pretax |
|
$ |
— |
|
|
$ |
— |
|
|
Net loss, pretax |
|
|
110 |
|
|
|
38 |
|
|
| Schedule of Net Periodic Benefit (Income) Costs |
The components of net periodic retirement cost for 2020, 2019 and 2018 are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Service cost |
|
$ |
49 |
|
|
$ |
51 |
|
|
$ |
36 |
|
|
Interest cost |
|
|
31 |
|
|
|
42 |
|
|
|
38 |
|
|
Amortization of prior-service cost |
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
Net periodic retirement cost |
|
$ |
80 |
|
|
$ |
93 |
|
|
$ |
96 |
|
|
| Schedule of Assumptions Used |
Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2020 and 2019 are as follows:
|
Weighted-average assumptions: |
|
2020 |
|
|
2019 |
|
|
Discount rate |
|
|
2.25 |
% |
|
|
3.00 |
% |
|
Change in consumer price index |
|
|
1.00 |
% |
|
|
1.00 |
% |
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 are as follows:
|
Weighted-average assumptions: |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Discount rate |
|
|
2.25 |
% |
|
|
3.00 |
% |
|
|
4.00 |
% |
|
Change in consumer price index |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
2.00 |
% |
|
| Schedule of Expected Benefit Payments |
Mid Penn expects to contribute $100,000 to its retirement plan in 2020. The following table shows the estimated benefit payments for future periods.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
1/1/2021 to 12/31/2021 |
|
$ |
100 |
|
|
1/1/2022 to 12/31/2022 |
|
|
102 |
|
|
1/1/2023 to 12/31/2023 |
|
|
102 |
|
|
1/1/2024 to 12/31/2024 |
|
|
83 |
|
|
1/1/2025 to 12/31/2025 |
|
|
85 |
|
|
1/1/2026 to 12/31/2030 |
|
|
328 |
|
|
| Scottdale Defined Benefit Pension Plan [Member] |
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Schedule of Net Funded Status |
The following tables provide a reconciliation of the changes in the defined benefit pension plan’s benefit obligations and fair value of plan assets for the year ended December 31, 2020 and 2019, and a statement of the status at December 31, 2020 and 2019.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
Change in benefit obligations: |
|
2020 |
|
|
2019 |
|
|
Benefit obligations, January 1 |
|
$ |
5,587 |
|
|
$ |
5,163 |
|
|
Service cost |
|
|
79 |
|
|
|
92 |
|
|
Interest cost |
|
|
180 |
|
|
|
217 |
|
|
Settlement (gain) loss |
|
|
(85 |
) |
|
|
(91 |
) |
|
Actuarial loss (gain) |
|
|
495 |
|
|
|
655 |
|
|
Settlement payments |
|
|
(769 |
) |
|
|
(363 |
) |
|
Benefit payments |
|
|
(86 |
) |
|
|
(86 |
) |
|
Benefit obligations, December 31 |
|
$ |
5,401 |
|
|
$ |
5,587 |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
Fair value of plan assets, January 1 |
|
$ |
5,404 |
|
|
$ |
4,818 |
|
|
Return on plan assets |
|
|
229 |
|
|
|
498 |
|
|
Employer contributions |
|
|
200 |
|
|
|
600 |
|
|
Benefit payments |
|
|
(86 |
) |
|
|
(86 |
) |
|
Administrative expenses |
|
|
(39 |
) |
|
|
(63 |
) |
|
Settlement payments |
|
|
(769 |
) |
|
|
(363 |
) |
|
Fair value of plan assets, December 31 |
|
$ |
4,939 |
|
|
$ |
5,404 |
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at year end |
|
$ |
(462 |
) |
|
$ |
(183 |
) |
|
| Schedule of Amounts Recognized in Balance Sheet |
Amounts recognized in other liabilities on the consolidated balance sheet at December 31, 2020 and 2019 are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Accrued benefit liability |
|
$ |
462 |
|
|
$ |
183 |
|
|
| Schedule of Amounts Recognized in Other Comprehensive (Loss) Income |
Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31 2020 and 2019:
|
(Dollars in thousands) |
|
December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
Unrecognized actuarial gain |
|
$ |
24 |
|
|
$ |
519 |
|
|
| Schedule of Net Periodic Benefit (Income) Costs |
The components of net periodic retirement cost for December 31, 2020 and 2019 are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
Service cost |
|
$ |
79 |
|
|
$ |
92 |
|
|
Interest cost |
|
|
180 |
|
|
|
217 |
|
|
Expected return on plan assets |
|
|
(273 |
) |
|
|
(254 |
) |
|
Recognized net actuarial gain |
|
|
— |
|
|
|
(59 |
) |
|
Net periodic retirement cost |
|
$ |
(14 |
) |
|
$ |
(4 |
) |
|
| Schedule of Assumptions Used |
Assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs at December 31, 2020 and 2019 are as follows:
|
Weighted-average assumptions: |
|
2020 |
|
|
2019 |
|
|
Discount rate |
|
|
2.50 |
% |
|
|
3.25 |
% |
|
Expected long-term return on plan assets |
|
|
4.50 |
% |
|
|
5.00 |
% |
|
Rate of compensation increases |
|
|
2.50 |
% |
|
|
3.00 |
% |
|
| Schedule of Expected Benefit Payments |
Mid Penn expects to contribute $300,000 to the defined benefit pension plan in 2021. The following table shows the estimated benefit payments for future periods.
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
1/1/2021 to 12/31/2021 |
|
$ |
85 |
|
|
1/1/2022 to 12/31/2022 |
|
|
102 |
|
|
1/1/2023 to 12/31/2023 |
|
|
104 |
|
|
1/1/2024 to 12/31/2024 |
|
|
226 |
|
|
1/1/2025 to 12/31/2025 |
|
|
282 |
|
|
1/1/2026 to 12/31/2030 |
|
|
1,595 |
|
|
| Schedule of Plan's Weighted Average Asset Allocation by Investment Category |
The plan’s weighted-average asset allocations by investment category as of December 31, 2020 and 2019 are as follows:
|
Weighted-average asset allocations: |
|
2020 |
|
|
2019 |
|
|
Cash and cash equivalents |
|
|
10.57 |
% |
|
|
51.76 |
% |
|
Common stock |
|
|
58.45 |
% |
|
|
35.23 |
% |
|
Corporate bonds |
|
|
30.98 |
% |
|
|
13.01 |
% |
|
|
|
|
100.00 |
% |
|
|
100.00 |
% |
|
| Schedule of Plan Assets at Fair Value |
The following tables set forth by level, within the fair value hierarchy, the plan’s assets at fair value as of December 31, 2020 and 2019.
|
|
|
Fair Value Measurements |
|
|
(Dollars in thousands) |
|
Quoted prices
in active
markets |
|
|
Significant
other
observable
inputs |
|
|
Significant
unobservable
inputs |
|
|
December 31, 2020 |
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
Cash and cash equivalents |
|
$ |
522 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
Manufacturing |
|
|
807 |
|
|
|
— |
|
|
|
— |
|
|
Transportation, Communications, Electric, Gas, and Sanitary Services |
|
|
555 |
|
|
|
— |
|
|
|
— |
|
|
Wholesale Trade |
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
Finance, Insurance, and Real Estate |
|
|
1,348 |
|
|
|
— |
|
|
|
— |
|
|
Services |
|
|
137 |
|
|
|
— |
|
|
|
— |
|
|
Corporate bonds |
|
|
— |
|
|
|
1,530 |
|
|
|
— |
|
|
|
|
$ |
3,409 |
|
|
$ |
1,530 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
|
(Dollars in thousands) |
|
Quoted prices
in active
markets |
|
|
Significant
other
observable
inputs |
|
|
Significant
unobservable
inputs |
|
|
December 31, 2019 |
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,797 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
|
|
34 |
|
|
|
— |
|
|
|
— |
|
|
Manufacturing |
|
|
830 |
|
|
|
— |
|
|
|
— |
|
|
Transportation, Communications, Electric, Gas, and Sanitary Services |
|
|
543 |
|
|
|
— |
|
|
|
— |
|
|
Finance, Insurance, and Real Estate |
|
|
330 |
|
|
|
— |
|
|
|
— |
|
|
Services |
|
|
155 |
|
|
|
— |
|
|
|
— |
|
|
Other |
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
Corporate bonds |
|
|
— |
|
|
|
703 |
|
|
|
— |
|
|
|
|
$ |
4,701 |
|
|
$ |
703 |
|
|
$ |
— |
|
|