XML 64 R48.htm IDEA: XBRL DOCUMENT v3.20.4
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

 

 

$

—