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Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]  
Reconciliation Of The Plan's Benefit Obligations, Fair Value Of Assets And The Funded Status

The following table provides a reconciliation of the Company’s changes in the Plan’s benefit obligations, fair value of assets and a statement of the funded status as of and for the year ended December 31 (in thousands):

 

 

 

2019

 

 

2018

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of period

 

$

69,574

 

 

$

70,436

 

Service cost

 

 

3,207

 

 

 

3,346

 

Interest cost

 

 

2,777

 

 

 

2,387

 

Actuarial (gain) loss

 

 

11,993

 

 

 

(3,298

)

Benefits paid and plan expenses

 

 

(3,223

)

 

 

(3,297

)

Projected benefit obligation at end of period

 

 

84,328

 

 

 

69,574

 

Change in plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

 

75,188

 

 

 

83,348

 

Actual return on plan assets

 

 

15,862

 

 

 

(4,863

)

Employer contributions

 

 

-

 

 

 

-

 

Benefits paid and plan expenses

 

 

(3,223

)

 

 

(3,297

)

Fair value of plan assets at end of period

 

 

87,827

 

 

 

75,188

 

Funded status at end of period

 

$

3,499

 

 

$

5,614

 

 

Estimated Benefit Payments Under The Pension Plan

Estimated benefit payments under the Plan over the next ten years at December 31, 2019 are as follows (in thousands):

 

2020

 

$

3,872

 

2021

 

 

3,475

 

2022

 

 

3,855

 

2023

 

 

4,127

 

2024

 

 

4,215

 

2025 - 2029

 

 

23,491

 

Components Of Net Periodic Benefit Expense

Net periodic pension cost consists of the following components for the years ended December 31 (in thousands):

 

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

3,207

 

 

$

3,346

 

 

$

3,140

 

Interest cost on projected benefit obligation

 

 

2,777

 

 

 

2,387

 

 

 

2,449

 

Expected return on plan assets

 

 

(4,736

)

 

 

(5,284

)

 

 

(4,775

)

Amortization of unrecognized loss

 

 

1,445

 

 

 

725

 

 

 

1,142

 

Amortization of unrecognized prior service (credit) cost

 

 

-

 

 

 

(5

)

 

 

17

 

Net periodic pension cost

 

$

2,693

 

 

$

1,169

 

 

$

1,973

 

Actuarial Assumptions Used

The actuarial assumptions used to determine the net periodic pension cost were as follows:

 

 

 

2019

 

 

2018

 

 

2017

 

Weighted average discount rate

 

 

4.13

%

 

 

3.49

%

 

 

4.00

%

Rate of compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

Expected long-term rate of return

 

 

6.50

%

 

 

6.50

%

 

 

6.50

%

 

The actuarial assumptions used to determine the projected benefit obligation were as follows:

 

 

 

2019

 

 

2018

 

 

2017

 

Weighted average discount rate

 

 

3.09

%

 

 

4.13

%

 

 

3.49

%

Rate of compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

Plan's Target Asset Allocation And Actual Asset Allocation The following table represents the Plan’s target asset allocation and actual asset allocation, respectively, as of December 31, 2019:

 

 

Target

 

Actual

 

 

Allocation

 

Allocation

Asset category:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

0.00

%

 

 

0.00

%

Equity securities

 

 

28.25

 

 

 

31.75

 

Fixed income securities

 

 

59.75

 

 

 

57.65

 

Alternative investments

 

 

12.00

 

 

 

10.60

 

 

The Plan had target asset allocations, based on asset categories, and actual asset allocations, respectively, as of December 31, 2018, as shown in the following table:

 

 

 

Target

 

Actual

 

 

Allocation

 

Allocation

Asset category:

 

 

 

 

 

 

 

 

Cash equivalents

 

 

0 – 20

%

 

 

4.2

%

Equity securities

 

 

40 – 60

 

 

 

46.1

 

Fixed income securities

 

 

40 – 60

 

 

 

45.8

 

Other financial instruments

 

 

0 – 5

 

 

 

3.9

 

The Major Categories Of Plan Assets Measured At Fair Value On a Recurring Basis

The major categories of Plan assets measured at fair value on a recurring basis as of December 31 are presented in the following tables (in thousands).

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

 

Fair Value

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash (including foreign currencies)

 

$

16

 

 

$

-

 

 

$

-

 

 

$

16

 

Short term investment funds

 

 

-

 

 

 

1,829

 

 

 

-

 

 

 

1,829

 

Total cash equivalents

 

 

16

 

 

 

1,829

 

 

 

-

 

 

 

1,845

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Depository receipts

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commingled pension trust funds

 

 

-

 

 

 

30,685

 

 

 

-

 

 

 

30,685

 

Preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total equity securities

 

 

-

 

 

 

30,685

 

 

 

-

 

 

 

30,685

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commingled pension trust funds

 

 

-

 

 

 

49,566

 

 

 

-

 

 

 

49,566

 

Corporate bonds

 

 

-

 

 

 

5

 

 

 

-

 

 

 

5

 

GNMA

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Government securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total fixed income securities

 

 

-

 

 

 

49,571

 

 

 

-

 

 

 

49,571

 

Other investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commingled pension trust funds - Realty

 

 

-

 

 

 

5,726

 

 

 

-

 

 

 

5,726

 

Total Plan investments

 

$

16

 

 

$

87,811

 

 

$

-

 

 

$

87,827

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

Inputs

 

 

Inputs

 

 

Inputs

 

 

Fair Value

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash (including foreign currencies)

 

$

28

 

 

$

-

 

 

$

-

 

 

$

28

 

Short term investment funds

 

 

-

 

 

 

3,094

 

 

 

-

 

 

 

3,094

 

Total cash equivalents

 

 

28

 

 

 

3,094

 

 

 

-

 

 

 

3,122

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

11,931

 

 

 

-

 

 

 

-

 

 

 

11,931

 

Depository receipts

 

 

203

 

 

 

-

 

 

 

-

 

 

 

203

 

Commingled pension trust funds

 

 

-

 

 

 

22,468

 

 

 

-

 

 

 

22,468

 

Preferred stock

 

 

95

 

 

 

-

 

 

 

-

 

 

 

95

 

Total equity securities

 

 

12,229

 

 

 

22,468

 

 

 

-

 

 

 

34,697

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations

 

 

-

 

 

 

750

 

 

 

-

 

 

 

750

 

Commingled pension trust funds

 

 

-

 

 

 

20,051

 

 

 

-

 

 

 

20,051

 

Corporate bonds

 

 

-

 

 

 

2,928

 

 

 

-

 

 

 

2,928

 

GNMA

 

 

-

 

 

 

144

 

 

 

-

 

 

 

144

 

Government securities

 

 

-

 

 

 

10,599

 

 

 

-

 

 

 

10,599

 

Mortgage backed securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total fixed income securities

 

 

-

 

 

 

34,472

 

 

 

-

 

 

 

34,472

 

Other investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commingled pension trust funds - Realty

 

 

-

 

 

 

-

 

 

 

2,897

 

 

 

2,897

 

Total Plan investments

 

$

12,257

 

 

$

60,034

 

 

$

2,897

 

 

$

75,188

 

 

Changes In Fair Value Of Plan Assets

The following table sets forth a summary of the changes in the Plan’s Level 3 assets for the years ended December 31, 2019 and 2018:

 

Level 3 assets, January 1, 2018

 

$

2,641

 

Unrealized gain

 

 

256

 

Level 3 assets, December 31, 2018

 

 

2,897

 

Realized gain

 

 

881

 

Sales

 

 

(2,873

)

Unrealized gain

 

 

(905

)

Level 3 assets, December 31, 2019

 

$

-

 

Components Of Accumulated Other Comprehensive Loss Related To Defined Benefit Plan And Postretirement Benefit Plan

The components of accumulated other comprehensive loss related to the defined benefit plan and postretirement benefit plan as of December 31 are summarized below (in thousands):

 

 

 

2019

 

 

2018

 

Defined benefit plan:

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

(19,894

)

 

$

(20,472

)

Prior service credit (cost)

 

 

-

 

 

 

-

 

 

 

 

(19,894

)

 

 

(20,472

)

Postretirement benefit plan:

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(133

)

 

 

(139

)

Prior service credit

 

 

37

 

 

 

102

 

 

 

 

(96

)

 

 

(37

)

Total

 

 

(19,990

)

 

 

(20,509

)

Deferred tax benefit

 

 

5,122

 

 

 

7,273

 

Amounts included in accumulated other comprehensive loss

 

$

(14,868

)

 

$

(13,236

)

Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income

Changes in plan assets and benefit obligations recognized in other comprehensive income on a pre-tax basis during the years ended December 31 are as follows (in thousands):

 

 

 

2019

 

 

2018

 

Defined benefit plan:

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

(867

)

 

$

(6,849

)

Amortization of net loss

 

 

1,445

 

 

 

725

 

Amortization of prior service credit

 

 

-

 

 

 

(5

)

 

 

 

578

 

 

 

(6,129

)

Postretirement benefit plan:

 

 

 

 

 

 

 

 

Net actuarial (loss) gain

 

 

(12

)

 

 

26

 

Amortization of net loss

 

 

18

 

 

 

25

 

Amortization of prior service credit

 

 

(65

)

 

 

(67

)

 

 

 

(59

)

 

 

(16

)

Total recognized in other comprehensive income

 

$

519

 

 

$

(6,145

)