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Pension Plans
 6 Months Ended
Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Pension Plans

Note 11 – Pension Plans

 

The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012.

 

The Company recorded pension income totaling $162,000 and $288,000 for the three months ended June 30, 2016 and 2015, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

 

    For the Three Months Ended June 30,  
    2016     2015     2016     2015     2016 Total     2015 Total  
($ in thousands)   Pension Plan     Pension Plan     SERP     SERP     Both Plans     Both Plans  
Service cost   $ —       —       27       46       27       46  
Interest cost     376       341       59       51       435       392  
Expected return on plan assets     (675 )     (710 )     —       —       (675 )     (710 )
Amortization of transition obligation     —       —       —       —       —       —  
Amortization of net (gain)/loss     60       —       (9 )     (16 )     51       (16 )
Amortization of prior service cost     —       —       —       —       —       —  
   Net periodic pension (income)/cost   $ (239 )     (369 )     77       81       (162 )     (288 )

 

The Company recorded pension income totaling $325,000 and $555,000 for the six months ended June 30, 2016 and 2015, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

 

    For the Six Months Ended June 30,  
    2016     2015     2016     2015     2016 Total     2015 Total  
($ in thousands)   Pension Plan     Pension Plan     SERP     SERP     Both Plans     Both Plans  
Service cost – benefits earned during the period   $ —       —       53       125       53       125  
Interest cost     752       682       118       103       870       785  
Expected return on plan assets     (1,350 )     (1,418 )     —       —       (1,350 )     (1,418 )
Amortization of transition obligation     —       —       —       —       —       —  
Amortization of net (gain)/loss     120       —       (18 )     (47 )     102       (47 )
Amortization of prior service cost     —       —       —       —       —       —  
   Net periodic pension cost (income)   $ (478 )     (736 )     153       181       (325 )     (555 )

 

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company does not expect to contribute to the Pension Plan in 2016.

 

The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.