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Employee benefit plans
 12 Months Ended
Dec. 31, 2021
Employee benefit plans  
Employee benefit plans

17. Employee benefit plans:

The Company sponsors a separate ESOP and Retirement Profit Sharing 401(k) Plan. The Company also maintains SERPs and an employees’ pension plan, which is currently frozen.

Under the ESOP, amounts voted by the Company’s Board of Directors are paid into the ESOP and each eligible participant is credited with an amount in proportion to their annual compensation or a fixed dollar amount. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions.

Under the Retirement Profit Sharing Plan, amounts approved by the Board of Directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law.

The Company contributed $334, $371 and $357 to the ESOP for 2021, 2020 and 2019. In addition, the Company contribution of $1,245, $1,207 and $1,139 to the Retirement Profit Sharing Plan in 2021, 2020 and 2019, was comprised of a safe harbor contribution of $678, $655 and $627 and a discretionary match of $567, $552 and $512.

The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by federal tax law. The annual benefit is a maximum of 6% of the executive compensation in excess of Federal limits. The total liability associated with this plan was $161 and $142 at December 31, 2021 and 2020, respectively. The expense associated with the plan was $19, $9 and $17 for 2021, 2020 and 2019 respectively.

 

The Company has SERPs for the benefit of certain officers. At December 31, 2021 and 2020, other liabilities include $2,573 and $2,351 accrued under the plans. Compensation expense includes approximately $424, $461 and $360 relating to these SERPs for the years ended December 31, 2021, 2020 and 2019, respectively.

Under the Employees’ Pension Plan, currently frozen, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company.

Information related to the Employees’ Pension Plan is as follows:

 

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​

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​

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​

​

Pension Benefits 

 

December 31

​

2021

​

2020

 

Change in benefit obligation:

    

​

​

    

​

​

​

Benefit obligation, beginning

​

$

19,113

​

$

17,491

​

Interest cost

​

 

419

​

 

544

​

Change in experience gain

​

 

(49)

​

 

(291)

​

Change in actuarial assumptions

​

 

(603)

​

 

2,159

​

Benefits paid

​

 

(814)

​

 

(790)

​

Benefit obligation, ending

​

 

18,066

​

 

19,113

​

Change in plan assets:

​

​

​

​

​

​

​

Fair value of plan assets, beginning

​

 

17,628

​

 

16,930

​

Actual return on plan assets

​

 

2,443

​

 

1,488

​

Employer contributions

​

 

​

​

 

​

​

Benefits paid

​

 

(814)

​

 

(790)

​

Fair value of plan assets, ending

​

 

19,257

​

 

17,628

​

Funded status at end of year

​

$

1,191

​

$

(1,485)

​

​

The Society of Actuaries updated the mortality scale within the mortality tables from MP 2020 to MP 2021 which the Company utilized in its pension plan remeasurements at December 31, 2021 and 2020. The change in the discount rate, coupled with changes in the mortality assumption, resulted in an decrease to the benefit obligation of $603 in 2021 and an increase of $2,159 in 2020.

Amounts recognized in the consolidated balance sheets are as follows:

 

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Pension Benefits 

​

 

December 31

​

2021

​

2020

​

 

​

​

​

​

​

​

​

​

​

(Other Assets)/Other Liabilities

    

$

(1,190)

    

$

1,485

    

​

Amounts recognized in the accumulated other comprehensive income (loss) consist of:

​

​

​

​

​

​

​

​

Net actuarial gain

​

 

(5,868)

​

 

(7,977)

​

​

Deferred taxes

​

 

1,232

​

 

1,675

​

​

​

​

​

​

​

​

​

​

​

Net amount recognized

​

$

(4,636)

​

$

(6,302)

​

​

​

​

​

​

​

​

​

​

​

​

 

The accumulated benefit obligation for the defined benefit pension plan was $18,066 and $19,113 at December 31, 2021 and 2020, respectively.

Components of net periodic pension income and other amounts recognized in other comprehensive loss are as follows:

 

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​

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Pension Benefits

 

Years Ended December 31, 

​

2021

​

2020

​

2019

 

Net periodic pension income:

    

​

​

    

​

​

    

​

​

​

Interest cost

​

$

419

​

$

544

​

$

639

​

Expected return on plan assets

​

 

(1,288)

​

 

(1,236)

​

 

(1,084)

​

Amortization of unrecognized net loss

​

 

301

​

 

218

​

 

227

​

Net periodic pension income:

​

 

(568)

​

 

(474)

​

​

(218)

​

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):

​

​

​

​

​

​

​

​

​

​

Net loss (gain)

​

 

419

​

 

544

​

 

639

​

Deferred tax

​

 

(88)

​

 

(114)

​

 

(134)

​

Total recognized in other comprehensive income (loss)

​

 

331

​

 

430

​

 

505

​

Total recognized in net period pension cost and other comprehensive income (loss)

​

$

(237)

​

$

(44)

​

$

287

​

​

Weighted-average assumptions used to determine benefit obligations and related expenses were as follows:

 

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​

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Pension Benefits

​

 

December 31, 

​

2021

​

2020

​

2019

​

 

Discount rate:

    

​

​

​

    

​

    

​

Obligation

 

2.59

%

2.25

%  

3.25

%  

​

Expense

 

2.25

​

3.25

​

4.00

​

​

Expected long-term return on plan assets

 

7.50

%

7.50

%  

7.50

%  

​

​

 

The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets.

The Company’s pension plan weighted-average asset allocations at December 31, 2021 and 2020, by asset category are as follows:

 

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December 31, 

    

2021

    

2020

 

Asset Category:

​

​

​

​

​

Cash and cash equivalents

 

4.8

%

6.8

%

Equity securities

 

67.4

​

63.3

​

Corporate bonds

 

19.6

​

20.7

​

U.S. government securities

 

8.2

​

9.2

​

​

 

100.0

%  

100.0

%

​

Fair value measurement of pension plan assets at December 31, 2021 and 2020 is as follows:

 

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Quoted Prices in

    

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​

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Active Markets

​

Significant

​

Significant

 

​

​

​

​

for Identical

​

Observable

​

Observable

 

​

​

​

​

Assets

​

Inputs

​

Inputs

 

December 31, 2021

​

Total 

​

(Level 1) 

​

(Level 2) 

​

(Level 3) 

 

Cash and cash equivalents

​

$

918

​

$

918

​

​

​

 

$

​

​

Equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. large cap

​

 

11,940

​

 

11,940

​

​

​

​

​

​

​

International

​

 

1,039

​

 

1,039

​

​

​

​

​

​

​

Fixed income securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasuries

​

 

214

​

​

​

​

$

214

​

​

​

​

U.S. government agencies

​

 

1,371

​

​

​

​

 

1,371

​

​

​

​

Corporate bonds

​

 

3,775

​

​

​

​

 

3,775

​

​

​

​

Total

​

$

19,257

​

$

13,897

​

$

5,360

​

$

​

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Quoted Prices in

    

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​

​

​

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Active Markets

​

Significant

​

Significant

 

​

​

​

​

​

for Identical

​

Observable

​

Observable

 

​

​

​

​

​

Assets

​

Inputs

​

Inputs

 

December 31, 2020

​

Total 

​

(Level 1) 

​

(Level 2) 

​

(Level 3) 

 

Cash and cash equivalents

​

$

1,203

​

$

1,203

​

​

​

​

$

​

​

Equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. large cap

​

 

10,266

​

 

10,266

​

​

​

​

​

​

​

International

​

 

888

​

 

888

​

​

​

​

​

​

​

Fixed income securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasuries

​

 

216

​

​

​

​

$

216

​

​

​

​

U.S. government agencies

​

 

1,400

​

​

​

​

 

1,400

​

​

​

​

Corporate bonds

​

 

3,655

​

​

​

​

 

3,655

​

​

​

​

Total

​

$

17,628

​

$

12,357

​

$

5,271

​

$

​

​

​

The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is large-cap core with a value bias (we invest in individual high-grade common stocks that are selected from our approved list); (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. government agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10%; (ii) fixed income 40%; and (iii) equities 50%.

 

There is no Company stock included in equity securities at December 31, 2021 or 2020. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2021.

The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter:

 

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​

​

​

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Pension Benefits

 

2022

​

$

878

​

2023

​

 

901

​

2024

​

 

952

​

2025

​

 

984

​

2026

​

 

1,015

​

Thereafter

​

​

5,020

​

​