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Pension Plans

3 Months Ended

Mar. 31, 2019

Note 9 – 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 periodic pension cost totaling $244,000 and $365,000 for the three months ended March 31, 2019 and 2018, respectively. The following table contains the components of the pension cost.

	For the Three Months Ended March 31,
	2019			2018			2019		2018			2019 Total			2018 Total
($ in thousands)	Pension Plan			Pension Plan			SERP		SERP			Both Plans			Both Plans
Service cost	$	—			—			—		29			—			29
Interest cost		372			330			41		57			413			387
Expected return on plan assets		(397	)		(103	)		—		—			(397	)		(103	)
Amortization of net (gain)/loss		223			60			5		(8	)		228			52
Net periodic pension cost	$	198			287			46		78			244			365

The service cost component of net periodic pension cost is included in salaries and benefits expense and all other components of net periodic pension cost are included in other noninterest expense.

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 Company did not contribute to the Pension Plan in the first quarter 2019 and does not expect to contribute to the Pension Plan in 2019.

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