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RETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS
14. RETIREMENT BENEFITS

Defined Benefit Retirement Plan

The Bank had a defined benefit retirement plan that covered substantially all of its employees who were employed during the period that the plan was in effect. Effective December 31, 2002, the Bank curtailed its defined benefit retirement plan, and accordingly, plan benefits were fixed as of that date.

In January 2021, the Board of Directors approved termination of, and authorized Company management to commence taking action to terminate, the defined benefit retirement plan. The Company received a favorable determination letter from the IRS and no objection from the Pension Benefit Guaranty Corporation on the Form 500 standard termination notice in January 2022. The Company completed the termination and settlement of the plan in the second quarter of 2022. Upon final plan termination and settlement, the Company recognized a one-time noncash settlement expense of $4.9 million, which was recorded in other operating expense.

With the termination of the defined benefit retirement plan in the second quarter of 2022, there were no plan assets, further defined benefit retirement plan liability or ongoing pension expense recognition remaining as of December 31, 2022 and no activity in 2023.
The following tables set forth information pertaining to the defined benefit retirement plan for the periods presented:

Year Ended
(Dollars in thousands)December 31, 2022
Change in benefit obligation: 
Benefit obligation at beginning of year$20,420 
Interest cost212 
Actuarial gains(1,766)
Benefits paid(5,398)
Annuity purchase(13,468)
Benefit obligation at end of the year— 
Change in plan assets, at fair value: 
Fair value of plan assets at beginning of year20,785 
Actual return on plan assets(1,969)
Employer contributions50 
Benefits paid(5,398)
Annuity purchase(13,468)
Fair value of plan assets at end of year— 
Funded status at end of year$— 
Amounts recognized in AOCI: 
Net actuarial losses$— 
Benefit obligation actuarial assumptions: 
Weighted-average discount rateN/A

Year Ended December 31,
(Dollars in thousands)20222021
Components of net periodic benefit cost:  
Interest cost$212 $485 
Expected return on plan assets(207)(549)
Amortization of net actuarial losses225 701 
Settlement4,884 — 
Net periodic benefit cost$5,114 $637 
Net periodic cost actuarial assumptions:
Weighted-average discount rate2.4 %2.3 %
Expected long-term rate of return on plan assets2.3 %2.7 %

For the years ended December 31, 2022 and 2021, the long-term rate of return on plan assets reflected the weighted-average long-term rates of return for the various categories of investments held in the plan.

Supplemental Executive Retirement Plans

In 1995, 2001, 2004 and 2006, our Bank established Supplemental Executive Retirement Plans ("SERP") that provide certain current and former officers of the Company with supplemental retirement benefits. On December 31, 2002, the 1995 and 2001 SERP were curtailed. In conjunction with the September 2004 merger with CB Bancshares, Inc. ("CBBI"), we assumed CBBI's SERP obligation. The SERP holds no plan assets other than employer contributions that are paid as benefits during the year.
The following tables set forth information pertaining to the SERP for the periods presented:

Year Ended December 31,
(Dollars in thousands)20232022
Change in benefit obligation  
Benefit obligation at beginning of year$9,220 $12,297 
Interest cost448 301 
Actuarial losses (gains)181 (2,960)
Benefits paid(575)(418)
Benefit obligation at end of year9,274 9,220 
Change in plan assets  
Fair value of plan assets at beginning of year— — 
Employer contributions575 418 
Benefits paid(575)(418)
Fair value of plan assets at end of year— — 
Funded status at end of year$(9,274)$(9,220)
Amounts recognized in AOCI 
Net transition obligation$— $(7)
Net actuarial losses106 701 
Total amounts recognized in AOCI$106 $694 
Benefit obligation actuarial assumptions  
Weighted-average discount rate4.8 %5.0 %

Year Ended December 31,
(Dollars in thousands)202320222021
Components of net periodic benefit cost
Interest cost$448 $301 $264 
Amortization of net actuarial (gains) losses(74)79 335 
Amortization of net transition obligation7 18 18 
Net periodic benefit cost$381 $398 $617 
Net periodic cost actuarial assumptions
Weighted-average discount rate5.1 %2.7 %2.1 %
Estimated future benefit payments reflecting expected future service for the SERP in each of the next five years and thereafter are as follows:

(Dollars in thousands)
Year Ending December 31:
2024$574 
2025570 
2026564 
2027559 
2028950 
Thereafter6,057 
Total$9,274 
401(k) Retirement Savings Plan

The Company maintains a 401(k) Retirement Savings Plan ("Retirement Savings Plan"), a defined contribution plan, that covers substantially all employees of the Company. The Retirement Savings Plan allows employees to direct their own investments among a selection of investment alternatives and is funded by employee elective deferrals, employer matching contributions and employer discretionary contributions.

The Company has the option of making regular matching contributions on employee's elective deferrals. The Company has sole discretion in determining the percentage to be matched, subject to limitations of the Internal Revenue Code.

From July 1, 2020 through June 30, 2021, matching contributions were suspended due to economic uncertainty in the wake of the COVID-19 pandemic. Effective July 1, 2021 through December 31, 2021, the Company matched 100% of an employees effective deferrals, up to 2% of the employee's pay each pay period. Effective January 1, 2022 through December 31, 2023, the Company matched 100% of an employees effective deferrals, up to 4% of the employee's pay each pay period.

The Company also has the option of making discretionary contributions into the Retirement Savings Plan and has sole discretion in determining the discretionary contribution, subject to limitations of the Internal Revenue Code. The Company did not make any discretionary contributions in 2023, 2022 and 2021.

Total contributions to the Retirement Savings Plan totaled $2.4 million, $2.4 million and $0.5 million in 2023, 2022 and 2021, respectively.