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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2020
Retirement Benefits [Abstract] |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) and Profit Sharing Plan The Company has a 401(k) and profit sharing plan and the majority of its employees participate in the plans. The Company's employees may contribute pre-tax contributions to the 401(k) plan up to the maximum amount allowed by federal tax laws. The Company makes matching contributions of up to 4% of an employee’s eligible compensation. The Company, at its discretion, may make profit sharing contributions to employees' 401(k) accounts in addition to its regular 401(k) plan matching contribution. For the year ended December 31, 2020, 2019 and 2018, these additional contributions totaled 3% of employee eligible compensation. For the year ended December 31, 2020, 2019 and 2018, expenses under the 401(k) plan matching contribution and profit sharing contributions totaled $2.9 million, $2.4 million, and $2.3 million, respectively. SERP and Other Postretirement Benefit Plan The Company sponsors unfunded, non-qualified SERPs for certain officers. These agreements are designed to make up the shortfall (when compared to a non-highly compensated employee) in replacing income at retirement due to IRS compensation and benefit limits under the 401(k) plan and Social Security. The SERP provides for a minimum 15-year guaranteed benefit for all vested participants. There are no new entrants to the Company's SERP. The Company also provides medical and life insurance to certain eligible retired employees under the other postretirement benefit plan. This postretirement plan is a benefit only to certain qualifying participants. There are no new entrants to the Company's medical and health postretirement benefit plan.. The following table summarizes changes in the benefit obligation and plan assets for each postretirement benefit plan as of the dates indicated:
|  | SERP |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Benefit obligations: |  |  |  |  |  |  |  |
Beginning of year |  | $ | 14,682 |  |  | $ | 12,717 |  |  | $ | 4,049 |  |  | $ | 3,616 |
Service cost |  | 464 |  |  | 395 |  |  | 28 |  |  | 48 |
Interest cost |  | 460 |  |  | 523 |  |  | 123 |  |  | 148 |
Actuarial loss |  | 911 |  |  | 1,524 |  |  | 371 |  |  | 394 |
Benefits paid |  | (486) |  |  | (477) |  |  | (151) |  |  | (157) |
End of year |  | 16,031 |  |  | 14,682 |  |  | 4,420 |  |  | 4,049 |
Fair value of plan assets: |  |  |  |  |  |  |  |
Beginning of year |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions |  | 486 |  |  | 477 |  |  | 151 |  |  | 157 |
Benefits paid |  | (486) |  |  | (477) |  |  | (151) |  |  | (157) |
End of year |  | — |  |  | — |  |  | — |  |  | — |
Unfunded status at end of year(1) |  | $ | 16,031 |  |  | $ | 14,682 |  |  | $ | 4,420 |  |  | $ | 4,049 |
Amounts recognized in AOCI, net of tax: |  |  |  |  |  |  |  |
Net actuarial loss |  | $ | 3,090 |  |  | $ | 2,864 |  |  | $ | 967 |  |  | $ | 738 |
Prior service credit |  | — |  |  | — |  |  | (113) |  |  | (132) |
Total |  | $ | 3,090 |  |  | $ | 2,864 |  |  | $ | 854 |  |  | $ | 606 |
(1) Presented within other liabilities on the consolidated statements of condition. The accumulated benefit obligation for the SERP at December 31, 2020 and 2019 was $15.7 million and $14.2 million, respectively. For the year ending December 31, 2021, the estimated actuarial loss on the SERP that will be amortized from AOCI into net periodic benefit cost is $778,000. All prior service costs have been fully amortized. For the year ending December 31, 2021, the estimated actuarial loss and prior service credit on other postretirement benefits that will be amortized from AOCI into net periodic benefit cost is $116,000 and $24,000, respectively. The components of net periodic benefit cost and other amounts recognized in OCI, before taxes, were as follows for the periods indicated:
|  | SERP |  | Other Postretirement Benefits
|  | For the Year Ended December 31, |  | For the Year Ended December 31,
(In thousands) |  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |
Service cost(1) |  | $ | 464 |  |  | $ | 395 |  |  | $ | 446 |  |  | $ | 28 |  |  | $ | 48 |  |  | $ | 46 |
Interest cost(2) |  | 460 |  |  | 523 |  |  | 488 |  |  | 123 |  |  | 148 |  |  | 132 |
Recognized net actuarial loss(2) |  | 623 |  |  | 240 |  |  | 561 |  |  | 78 |  |  | 31 |  |  | 52 |
Amortization of prior service credit(2) |  | — |  |  | — |  |  | — |  |  | (24) |  |  | (24) |  |  | (24) |
Net periodic benefit cost |  | 1,547 |  |  | 1,158 |  |  | 1,495 |  |  | 205 |  |  | 203 |  |  | 206 |
Changes in funded status recognized in OCI, before taxes: |  |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss (gain) arising during period |  | 911 |  |  | 1,524 |  |  | (1,534) |  |  | 371 |  |  | 394 |  |  | (209) |
Reclassifications to net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of net unrecognized actuarial loss |  | (623) |  |  | (240) |  |  | (561) |  |  | (78) |  |  | (31) |  |  | (52) |
Amortization of prior service credit |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 24 |  |  | 24 |
Total recognized in OCI, before taxes |  | 288 |  |  | 1,284 |  |  | (2,095) |  |  | 317 |  |  | 387 |  |  | (237) |
Total recognized in net periodic benefit cost and OCI, before taxes |  | $ | 1,835 |  |  | $ | 2,442 |  |  | $ | (600) |  |  | $ | 522 |  |  | $ | 590 |  |  | $ | (31) |
(1) Presented in salaries and employee benefits on the consolidated statements of income. (2) Presented in other expenses on the consolidated statements of income. The following assumptions were used in determining benefit obligations and net period benefit costs:
| SERP |  | Other Postretirement Benefits
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Weighted-average assumptions as of end of year: |  |  |  |  |  |  |  |  |  |  |
Discount rate for benefit obligation | 2.5 | % |  | 3.2 | % |  | 4.2 | % |  | 2.4 | % |  | 3.2 | % |  | 4.2 | %
Discount rate for net periodic benefit cost | 3.2 | % |  | 4.2 | % |  | 3.6 | % |  | 3.2 | % |  | 4.2 | % |  | 3.6 | %
Rate of compensation increase for benefit obligation | 3.0 | % |  | 3.0 | % |  | 3.0 | % |  | N/A |  | N/A |  | N/A
Rate of compensation increase for net periodic benefit cost | 3.0 | % |  | 3.0 | % |  | 3.0 | % |  | N/A |  | N/A |  | N/A
Health care cost trend rate assumed for future years | N/A |  | N/A |  | N/A |  | 4.5% - 6.5% |  | 4.5% - 7.0% |  | 5.0% - 6.0%
A 1.0% increase or decrease in the assumed health care cost trend rate would not materially increase or decrease the Company's accumulated postretirement benefit obligation and the related service and interest cost as of December 31, 2020. For the year ending December 31, 2021, the expected contribution for the SERP is $536,000 and for the other postretirement benefits plan is $276,000. The expected benefit payments for the next ten years are presented in the following table:
(In thousands) |  | SERP |  | Other Postretirement Benefits
2021 |  | $ | 536 |  |  | $ | 276 |
2022 |  | 566 |  |  | 247 |
2023 |  | 526 |  |  | 235 |
2024 |  | 436 |  |  | 246 |
2025 |  | 436 |  |  | 228 |
Next 5 years |  | 2,131 |  |  | 1,090 |

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