XML 75 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
Employee Benefit Plans
 3 Months Ended
Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
The Corporation maintains a defined benefit pension plan ("Pension Plan") for certain employees, which was curtailed effective January 1, 2008. Contributions to the Pension Plan are actuarially determined and funded annually, if required. Pension Plan assets are invested in: money markets; fixed income securities, including corporate bonds, U.S. Treasury securities and common trust funds; and equity securities, including common stocks and common stock mutual funds.
The net periodic benefit cost for the Corporation’s Pension Plan consisted of the following components:
 
Three months ended March 31
 
2015
 
2014
 
(in thousands)
Service cost (1)
$
145

 
$
92

Interest cost
851

 
853

Expected return on plan assets
(752
)
 
(811
)
Net amortization and deferral
782

 
244

Net periodic benefit cost
$
1,026

 
$
378

 
(1)
The Pension Plan service cost recorded for the three months ended March 31, 2015 and 2014 was related to administrative costs associated with the plan and was not due to the accrual of additional participant benefits.
The Corporation currently provides medical and life insurance benefits under a postretirement benefits plan ("Postretirement Plan") to certain retired full-time employees who were employees of the Corporation prior to January 1, 1998.
Effective February 1, 2014, the Corporation amended the Postretirement Plan, making all active full-time employees ineligible for benefits under this plan. As a result of this amendment, the Corporation recorded a $1.5 million gain during the three months ended March 31, 2014, as a reduction to salaries and employee benefits on the consolidated statements of income. The gain resulted from the recognition of the remaining prior service cost prior to the amendment date as of December 31, 2013. In addition, this amendment resulted in a $3.4 million decrease in the accumulated postretirement benefit obligation and a corresponding increase in unrecognized prior service cost credits.
The net periodic cost (benefit) of the Corporation’s Postretirement Plan consisted of the following components, excluding the $1.5 million plan amendment gain in 2014:
 
Three months ended March 31
 
2015
 
2014
 
(in thousands)
Service cost (1)
$
—

 
$
15

Interest cost
52

 
61

Net accretion and deferral
(65
)
 
(95
)
Net periodic benefit
$
(13
)
 
$
(19
)

(1)
As a result of the plan amendment, additional participant benefits are not accrued under the Postretirement Plan after February 1, 2014.
The Corporation recognizes the funded status of its Pension Plan and Postretirement Plan on the consolidated balance sheets and recognizes the change in that funded status through other comprehensive income.