XML 37 R20.htm IDEA: XBRL DOCUMENT v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
401(k) Plan
The Company sponsors a retirement savings plan (the "401(k) Plan") pursuant to Section 401(k) of the Internal Revenue Code ("IRC"). New employees who have met the age requirement are automatically enrolled in the 401(k) Plan at a 6% deferral rate. The automatic deferral can be modified by the employee at any time. An eligible employee may contribute up to 15% of annual salary to the plan, not to exceed IRC limits. For the years ended December 31, 2025, 2024, and 2023, the Company matched 100% of the employee’s contribution up to 6%, 4% and 6%, respectively. The Company’s matching contribution expense was $6.0 million, $6.8 million, and $6.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Discretionary contributions by the Company are permitted by the plan. The Company's matching and discretionary contributions are made according to the same investment elections each participant has established for their deferral contributions. During 2024, upon the dissolution of the Pension Plan, as discussed below, the remaining balance of plan assets was transferred to the 401(k) Plan, the expense for which is included in the 2024 contribution expense shown above. The balance was allocated to participants per the terms of the plan. The Company did not make any other discretionary contributions to the plan.
Pension Plan
Historically, the Company offered a noncontributory defined benefit retirement plan (the “Pension Plan”) that qualified under Section 401(a) of the IRC. In 2023, the Company’s Board of Directors (the "Board") approved a resolution to terminate the Pension Plan. During 2023, the Company commenced the Pension Plan termination
process and on July 31, 2023, the Pension Plan was amended to terminate it as of that date. Subsequently in 2023, the Pension Plan settled benefits through lump-sum payments of approximately $9.2 million to eligible participants electing that option and purchased annuity contracts from One America (the "Insurer") which irrevocably transferred to the Insurer approximately $19.5 million of the Pension Plan's obligations and related assets, thereby reducing the Pension Plan's obligations at December 31, 2023 to zero. The Company utilized the remaining surplus for future contributions under the Company’s 401(k) Plan and the remaining balance was transferred to the 401(k) Plan during 2024.
Supplemental Executive Retirement Plan
Historically, the Company has sponsored a Supplemental Executive Retirement Plan (the “SERP”) for the benefit of certain senior management executives of the Company. The purpose of the SERP is to provide additional monthly pension benefits. The SERP is an unfunded plan. Payments are made from the general assets of the Company. Effective December 31, 2012, the Company froze the SERP to all participants.
The following table reconciles the beginning and ending balances of the SERP’s benefit obligation, as computed by the Company’s independent actuarial consultants:
($ in thousands)202520242023
Change in benefit obligation   
Benefit obligation at beginning of year$3,151 $3,352 $3,521 
Service cost— — — 
Interest cost160 151 158 
Actuarial loss (gain)102 (111)(86)
Benefits paid(241)(241)(241)
Accumulated benefit obligation at end of year3,172 3,151 3,352 
Plan assets— — — 
Funded status at end of year$(3,172)$(3,151)$(3,352)
The accumulated benefit obligation presented above is included in "Other liabilities" in the consolidated balance sheets at December 31, 2025 and 2024.
The following table presents information regarding the amounts recognized in AOCI at December 31, 2025 and 2024, as it relates to the SERP:
($ in thousands)20252024
Net (loss) gain$(102)$111 
Prior service cost— — 
Amount recognized in AOCI before tax effect(102)111 
Tax benefit (expense) 23 (26)
Net amount recognized as (decrease) increase to AOCI$(79)$85 
The following table reconciles the beginning and ending balances of AOCI at December 31, 2025 and 2024, as it relates to the SERP:
($ in thousands)20252024
Accumulated other comprehensive income (loss) at beginning of fiscal year$85 $(77)
Net (loss) gain arising during period(102)111 
Prior service cost— — 
Amortization of unrecognized actuarial (loss) gain(111)100 
Amortization of prior service cost and transition obligation— — 
Tax benefit (expense) related to changes during the year, net49 (49)
Accumulated other comprehensive (loss) income at end of fiscal year$(79)$85 
The following table reconciles the beginning and ending balances of the prepaid pension cost related to the SERP:
($ in thousands)20252024
Accrued liability as of beginning of fiscal year$(3,261)$(3,251)
Net periodic pension cost for fiscal year(49)(251)
Benefits paid241 241 
Accrued liability as of end of fiscal year$(3,069)$(3,261)
Net pension cost for the SERP included the following components for the years ended December 31, 2025, 2024, and 2023:
($ in thousands)202520242023
Service cost – benefits earned during the period$— $— $— 
Interest cost on projected benefit obligation160 151 158 
Amortization of net actuarial (loss) gain(111)100 (1,737)
Net periodic pension cost (income)$49 $251 $(1,579)
The components of net periodic benefit cost other than the service cost component are included in the line item "Other operating expenses" in the consolidated statements of income.
The following table is an estimate of the benefits that will be paid in accordance with the SERP for each of the five calendar years ending December 31, 2030 and thereafter:
($ in thousands)Estimated
benefit
payments
2026$286 
2027305 
2028396 
2029289 
2030281 
2031-20351,270 
The following assumptions were used in determining the actuarial information for the SERP for the years ended December 31, 2025, 2024, and 2023:
 202520242023
Discount rate used to determine net periodic pension cost5.31%4.68%4.90%
Discount rate used to calculate end of year liability disclosures4.89%5.31%4.68%
The Company’s discount rate policy for the SERP is to use the FTSE yield curve that matches the expected cash flows of the SERP.