XML 33 R19.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Defined Benefit Plan
The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Company froze the benefits of the Plan as of February 28, 2021. As such, subsequent to February 28, 2021, there is no service cost associated with the Plan. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit
credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the Plan over a period of approximately 30 years.
A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:
(In thousands)20212020
Projected benefit obligation:
Balance, January 1 $122,035 $119,827 
Service cost 1,002 4,329 
Interest cost 3,076 3,908 
Actuarial (gain) loss (5,822)15,087 
Plan amendments — (18,322)
Benefits paid (2,968)(2,794)
Balance, December 31
$117,323 $122,035 
Plan assets:
Fair value, January 1 $106,667 $94,634 
Actual return 10,107 14,826 
Employer contribution 330 — 
Benefits paid (2,968)(2,793)
Fair value, December 31
$114,136 $106,667 
Funded status:
Accrued pension liability $(3,187)(15,368)
The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2021, 2020 and 2019, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2021, the Pri-2012 Mortality Table and MP-2022 Mortality Improvement Scale were used. For 2020, the Pri-2012 Mortality Table and MP-2020 Mortality Improvement Scale were used. For 2019, the Pri-2012 Mortality Table and MP-2019 Mortality Improvement Scale were used.
202120202019
Weighted average discount rate 2.85 %2.55 %3.30 %
Rate of increase in compensation levels (a)(a)(a)
(a)6.0% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $117,323,000 and $121,095,000 as of December 31, 2021 and 2020, respectively. The Company made a contribution of $330,000 during 2021, while in 2020 there was no contribution made to the Plan. The Company has not determined if it will make a contribution to the Plan in 2022. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:
Amount
2022$3,771,000 
20234,165,000 
20244,396,000 
20254,593,000 
20264,802,000 
2026-2030 26,978,000 
The Plan’s pension cost included the following components:
For the Year Ended
December 31,
(In thousands)202120202019
Service cost – benefits earned during the year $1,002 $4,329 $3,555 
Interest cost on projected benefit obligations 3,076 3,908 4,103 
Expected return on plan assets (6,310)(6,049)(4,753)
Net amortization and deferral 393 1,946 1,559 
Net periodic pension (benefit) cost $(1,839)$4,134 $4,464 
The following represent the major assumptions used to determine the net pension cost of the Plan:
202120202019
Weighted average discount rate 2.55 %3.30 %4.30 %
Rate of increase in compensation levels (a )(a )(a )
Expected long-term rate of return on assets 6.00 %6.50 %6.50 %
(a)6.0% graded down to 3.25% over the first seven years of service
For 2021, the Pri-2012 Mortality Table and the MP-2020 Mortality Improvement Table were used. For 2020, the Pri-2012 Mortality Table and the MP-2019 Mortality Improvement Table were used. For 2019, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Table were used.
The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 51% fixed income, 23% U.S. equity and 26% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:
Asset Class% of Total PortfolioOne-Year Nominal
Return		Annual Standard
Deviation
Core Fixed Income 51 %3.95 %8.82 %
Large Cap U.S. Equities 18 %7.24 %17.27 %
Small Cap U.S. Equities 5 %8.57 %22.09 %
International (Developed) 18 %8.34 %18.39 %
International (Emerging) 8 %11.12 %27.24 %
Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.00%.
A summary of the fair value measurements by type of asset is as follows:
Fair Value Measurements as of December 31,
20212020
(In thousands)TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)		TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)
Cash $535 $535 $— $484 $484 $— 
Real estate investment trusts6,250 — 6,250 — — — 
Equity securities
U.S. Small/Mid Cap Growth 4,734 — 4,734 5,530 — 5,530 
Non-U. S. Core 19,164 — 19,164 26,342 — 26,342 
U.S. Large Cap Passive 18,279 — 18,279 17,520 — 17,520 
Emerging Markets 7,701 — 7,701 5,882 — 5,882 
Fixed Income
U.S. Core 51,386 — 51,386 23,467 — 23,467 
U.S. Passive — — — 21,680 — 21,680 
Opportunistic 6,087 — 6,087 5,762 — 5,762 
Total $114,136 $535 $113,601 $106,667 $484 $106,183 
Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.
A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows:
December 31,
(In thousands)20212020
Benefit obligation:
Balance, January 1 $13,412 $11,712 
Service cost 147 121 
Interest cost 291 347 
Benefits paid (282)(291)
Actuarial (gain)/loss (1,148)1,523 
Balance, December 31
$12,420 $13,412 
The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2021, 2020 and 2019, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve.
202120202019
Weighted average discount rate 2.65 %2.20 %3.00 %
Rate of increase in compensation levels (a)(a)(a)
(a)6.00% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $12,420,000 and $12,492,000 as of December 31, 2021 and 2020, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $282,000 in 2021, $291,000 in 2020, and $262,000 in 2019. Expected future benefits payable by the Company over the next ten years are as follows:
Amount
2022$823,000 
2023804,000 
2024802,000 
2025799,000 
2026795,000 
2026-2030 $3,878,000 
Net periodic pension cost related to the SERP included the following components:
For the Year Ended December 31,
(In thousands)202120202019
Service cost – benefits earned during the year $147 $121 $97 
Interest cost on projected benefit obligations 291 347 408 
Net amortization and deferral 203 112 276 
Net periodic pension cost $641 $580 $781 
The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:
The PlanSERP
(In thousands)2021202020212020
Prior service cost $— $— $— $— 
Net actuarial loss 5,417 15,429 2,783 4,135 
Total $5,417 $15,429 $2,783 $4,135 
The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2021 expected to be recognized as components of net periodic benefit cost in 2022 for the Plan are both $0. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2021 expected to be recognized as components of net periodic benefit cost in 2022 for the SERP are $0 and $108,000 respectively.
The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in personnel expense in the consolidated statements of income in 2021, 2020, and 2019 was $6,436,000, $5,665,000, and $6,841,000, respectively.
The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2021, 2020 and 2019 were $3,488,000, $1,508,000, and $1,378,000, respectively. In conjunction with the freezing of the Plan, contribution rates to employees increased on March 1, 2021.