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Pension Plans

6 Months Ended

Jun. 30, 2017

Note 12 – 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 $241,000 and $162,000 for the three months ended June 30, 2017 and 2016, 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,
	2017			2016			2017			2016			2017 Total			2016 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost	$	—			—			32			27			32			27
Interest cost		350			376			53			59			403			435
Expected return on plan assets		(730	)		(675	)		—			—			(730	)		(675	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		62			60			(8	)		(9	)		54			51
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension (income)/cost	$	(318	)		(239	)		77			77			(241	)		(162	)

The Company recorded pension income totaling $403,000 and $325,000 for the six months ended June 30, 2017 and 2016, 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,
	2017			2016			2017			2016			2017 Total			2016 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			—			59			53			59			53
Interest cost		725			752			113			118			838			870
Expected return on plan assets		(1,405	)		(1,350	)		—			—			(1,405	)		(1,350	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		122			120			(17	)		(18	)		105			102
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(558	)		(478	)		155			153			(403	)		(325	)

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 2017.

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