Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Benefit Obligation and Plan Assets Deriving Funded Status, in Other Liabilities

The following table summarizes the activity in the benefit obligation and Plan assets deriving the funded status, which is recorded in other liabilities in the Consolidated Balance Sheets:



(dollars in thousands)	2017			2016
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	105,834		$	109,747
Service cost	—			463
Interest cost	4,100			4,296
Actuarial loss	4,974			3,575
Curtailments	—			(6,997		)
Benefits paid	(8,244		)	(5,250		)
Projected Benefit Obligation at End of Year	$	106,664		$	105,834
Change in Plan Assets
Fair value of plan assets at beginning of year	$	87,711		$	84,585
Actual return on plan assets	7,687			8,376
Benefits paid	(8,244		)	(5,250		)
Fair Value of Plan Assets at End of Year	$	87,154		$	87,711
Funded Status	$	(19,510	)	$	(18,123	)

Accumulated Other Comprehensive Income (Loss)

The following table sets forth the amounts recognized in accumulated other comprehensive (loss) income at December 31:



(dollars in thousands)	2017			2016
Prior service credit	$	—		$	—
Net actuarial loss	(27,825		)	(26,013		)
Total (Before Tax Effects)	$	(27,825	)	$	(26,013	)

Actuarial Weighted Average Assumptions Used in Determining Benefit Obligation

Below are the actuarial weighted average assumptions used in determining the benefit obligation:



	2017		2016
Discount rate	3.75	%	4.00	%
Rate of compensation increase⁽¹⁾	—	%	—	%

⁽¹⁾Rate of compensation increase is not applicable for 2017 and 2016 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016.

Components of Net Periodic Pension Cost and Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss)

The following table summarizes the components of net periodic pension cost and other changes in Plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31:



(dollars in thousands)	2017			2016			2015
Components of Net Periodic Pension Cost
Service cost—benefits earned during the period	$	—		$	463		$	2,601
Interest cost on projected benefit obligation	4,100			4,296			4,425
Expected return on plan assets	(6,313		)	(5,780		)	(7,180		)
Amortization of prior service credit	—			(11		)	(138		)
Recognized net actuarial loss	1,866			2,345			2,028
Curtailment gain	—			(1,017		)	—
Net Periodic Pension Expense	$	(347	)	$	296		$	1,736
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss)
Net actuarial (gain) loss	$	3,678		$	(6,018	)	$	5,678
Recognized net actuarial loss	(1,866		)	(2,345		)	(2,028		)
Recognized prior service credit	—			1,029			138
Total (Before Tax Effects)	$	1,812		$	(7,334	)	$	3,788
Total Recognized in Net Benefit Cost and Other Comprehensive (Loss)/Income (Before Tax Effects)	$	1,465		$	(7,038	)	$	5,524

Actuarial Weighted Average Assumptions Used in Determining Net Periodic Pension Cost

The following table summarizes the actuarial weighted average assumptions used in determining net periodic pension cost:



	2017		2016		2015
Discount rate	4.00	%	4.25	%	4.00	%
Rate of compensation increase⁽¹⁾	—	%	3.00	%	3.00	%
Expected return on assets	7.50	%	7.50	%	8.00	%

¹⁾Rate of compensation increase is not applicable for 2017 and 2016 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016.

Estimated Future Benefit Payments

The following table provides information regarding estimated future benefit payments to be paid in each of the next five years and in the aggregate for the five years thereafter:



(dollars in thousands)	Amount

2018	$	7,175
2019	7,090
2020	6,956
2021	7,157
2022	7,106
2023 - 2027	32,658

Pension Plan Assets Measured at Fair Value on Recurring Basis

The following tables present our Plan assets measured at fair value on a recurring basis by fair value hierarchy level at December 31, 2017 and 2016. There were no transfers between Level 1 and Level 2 for items of a recurring basis during the periods presented. There were no purchases or transfers of Level 3 plan assets in 2017.



	December 31, 2017
	Fair Value Asset Classes⁽¹⁾
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents⁽²⁾	$	—	$	1,780	$	—	$	1,780
Fixed income⁽³⁾	27,738		—		—		27,738
Equities:
Equity index mutual funds—international⁽⁴⁾	4,016		—		—		4,016
Domestic individual equities⁽⁵⁾	53,540		—		—		53,540
Total Assets at Fair Value	$	85,294	$	1,780	$	—	$	87,074

⁽¹⁾Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy.

⁽²⁾This asset class includes FDIC insured money market instruments.

⁽³⁾This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar.

⁽⁴⁾The sole investment within this asset class is the Harbor International Institutional Fund.

⁽⁵⁾This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds.



	December 31, 2016
	Fair Value Asset Classes⁽¹⁾
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents⁽²⁾	$	—	$	3,336	$	—	$	3,336
Fixed income⁽³⁾	27,279		—		—		27,279
Equities:
Equity index mutual funds—international⁽⁴⁾	3,362		—		—		3,362
Domestic individual equities⁽⁵⁾	53,636		—		—		53,636
Total Assets at Fair Value	$	84,277	$	3,336	$	—	$	87,613

⁽¹⁾Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy.

⁽²⁾This asset class includes FDIC insured money market instruments.

⁽⁴⁾The sole investment within this asset class is MSCI EAFE Index iShares.

⁽⁵⁾This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds.