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EMPLOYEE BENEFIT PLANS
 6 Months Ended
Jun. 30, 2023
EMPLOYEE BENEFIT PLANS [Abstract]  
EMPLOYEE BENEFIT PLANS
NOTE 16 – EMPLOYEE BENEFIT PLANS
The Corporation
 
maintains two frozen
 
qualified noncontributory
 
defined benefit pension
 
plans (the “Pension
 
Plans”), and
 
a related
complementary
 
post-retirement
 
benefit
 
plan
 
(the
 
“Postretirement
 
Benefit
 
Plan”)
 
covering
 
medical
 
benefits
 
and
 
life
 
insurance
 
after
retirement
 
that
 
it
 
obtained
 
in
 
the
 
Banco
 
Santander
 
Puerto
 
Rico
 
(“BSPR”)
 
acquisition
 
on
 
September
 
1,
 
2020.
 
One
 
defined
 
benefit
pension
 
plan covers
 
substantially all
 
of BSPR’s
 
former
 
employees who
 
were active
 
before January
 
1, 2007,
 
while
 
the other
 
defined
benefit pension plan covers personnel of an institution previously acquired
 
by BSPR. Benefits are based on salary and years of service.
The accrual of benefits under the Pension Plans is frozen to all participants.
 
The
 
Corporation
 
requires
 
recognition
 
of
 
a
 
plan’s
 
overfunded
 
and
 
underfunded
 
status
 
as
 
an
 
asset
 
or
 
liability
 
with
 
an
 
offsetting
adjustment to accumulated other comprehensive loss pursuant
 
to the ASC Topic 715,
 
“Compensation-Retirement Benefits.”
The following table presents the components of net periodic cost (benefit) for
 
the indicated periods:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affected Line Item
in the Consolidated
Quarter Ended June 30,
 
Six-Month Period Ended June
30,
 
Statements of Income
2023
2022
2023
2022
(In thousands)
Net periodic cost (benefit), pension
plans:
Interest cost
Other expenses
$
950
$
654
$
1,900
$
1,308
Expected return on plan assets
Other expenses
(885)
(1,040)
(1,771)
(2,079)
Net periodic cost (benefit), pension plans
65
(386)
129
(771)
Net periodic cost, postretirement plan
Other expenses
6
2
12
3
Net periodic cost (benefit)
$
71
$
(384)
$
141
$
(768)