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Retirement Plans | 12 Months Ended
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Dec. 31, 2017
Retirement Benefits [Abstract] |
Retirement Plans | RETIREMENT PLANS The Company sponsors a defined benefit retirement plan that covers eligible employees hired prior to February 1, 2007. The benefits are based on years of service and the employee’s five-year final average salary. The accounting for the defined benefit plan requires the use of assumptions and estimates in order to calculate periodic benefit cost and the value of the plan's assets and benefit obligation. These assumptions include discount rates, investment returns, and project salary increases, amongst others. The discount rates used in valuing the plan's benefits obligations were determined with reference to high quality corporate and government bonds that are appropriately matched to the duration of the plan's obligation. Contributions are intended to provide for benefits attributable to service both to date and expected to be provided in the future. The Company funds the plan in accordance with the Employee Retirement Income Security Act of 1974, or ERISA. The Company in April 2017, froze the Benefit Plan as it relates to future benefit accruals for participants. The benefit accrual freeze resulted in an adjustment to the Benefit Plan, improving our other comprehensive loss position by $404,000. The following table sets forth changes in the plan's net benefit obligation and accumulated benefit information as of December 31:
($ in thousands) |  | 2017 |  | 2016
Change in benefit obligation - Pension |  |  |  |
Benefit obligation at beginning of year |  | $ | 9,905 |  |  | $ | 8,970 |
Service cost |  | 15 |  |  | 223 |
Interest cost |  | 386 |  |  | 406 |
Actuarial gain/assumption changes |  | 1,505 |  |  | 378 |
Benefits paid |  | (124 | ) |  | (50 | )
Settlements paid |  | (1,588 | ) |  | (22 | )
Benefit obligation at end of year |  | $ | 10,099 |  |  | $ | 9,905 |
Accumulated benefit obligation at end of year |  | $ | 10,099 |  |  | $ | 8,475 |
Change in Plan Assets |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 6,974 |  |  | $ | 6,707 |
Actual return on plan assets |  | 804 |  |  | 339 |
Employer contribution |  | 165 |  |  | — |
Benefits/expenses paid |  | (124 | ) |  | (50 | )
Settlements paid |  | — |  |  | (22 | )
Fair value of plan assets at end of year |  | $ | 7,819 |  |  | $ | 6,974 |
Funded status - liability |  | $ | (2,280 | ) |  | $ | (2,931 | )
Amounts recorded in equity |  |  |  |
Net actuarial loss |  | $ | 2,973 |  |  | $ | 3,465 |
Prior service cost |  | — |  |  | (61 | )
Total amount recorded |  | $ | 2,973 |  |  | $ | 3,404 |
Amount recorded, net taxes |  | $ | 1,784 |  |  | $ | 2,042 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income include the following as of December 31:
($ in thousands) |  | 2017 |  | 2016
Net loss (gain) |  | $ | (355 | ) |  | $ | 556 |
Recognition of net actuarial loss |  | (137 | ) |  | (213 | )
Recognized prior service cost |  | 61 |  |  | 29 |
Total changes |  | $ | (431 | ) |  | $ | 372 |
Changes, net of taxes |  | $ | (259 | ) |  | $ | 188 |
The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year:
Amortization net actuarial gain | $ | 64 |
Amortization prior service cost | $ | — |
At December 31, 2017 and 2016, the Company had a long-term pension liability. The Company has always valued its plan assets as of December 31 each year so there were no additional transition impacts upon implementation of a year-end measurement date for plan assets as required by ASC 715 "Compensation - Retirement Benefits." For 2018, the Company is estimating that contributions to the pension plan will be approximately $165,000. Based on actuarial estimates, it is expected that annual benefit payments from the pension trust will be as follows:
2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Thereafter
$ | 200 |  |  | $ | 268 |  |  | $ | 278 |  |  | $ | 291 |  |  | $ | 294 |  |  | $ | 2,327 |
Plan assets consist of equity, debt and short-term money market investment funds. The plan’s current investment policy targets 65% equities, 25% debt and 10% money market funds. Equity and debt investment percentages are allowed to fluctuate plus or minus 20% around the respective targets to take advantage of market conditions. As an example, equities can fluctuate from 78% to 52% of plan assets. At December 31, 2017, the investment mix was approximately 57% equity, 37% debt, and 6% money market funds. At December 31, 2016, the investment mix was approximately 60% equity, 29% debt and 11% money market funds. Equity investments consist of a combination of individual equity securities plus value funds, growth funds, large cap funds and international stock funds. Debt investments consist of U.S. Treasury securities and investment grade corporate debt. The weighted-average discount rate used in determining the periodic pension cost is 3.65% in 2017 and 4.30% in 2016. The expected long-term rate of return on plan assets is 7.5% in 2017 and 2016. The long-term rate of return on plan assets is based on the historical returns within the plan and expectations for future returns. See the following table for fair value hierarchy by investment type at December 31:
($ in thousands) |  | Fair Value Hierarchy |  | 2017 |  | 2016
Pension Plan Assets: |  |  |  |  |  |
Cash and Cash Equivalents |  | Level 1 |  | $ | 455 |  |  | $ | 776 |
Collective Funds |  | Level 2 |  | 3,942 |  |  | 3,423 |
Treasury/Corporate Notes |  | Level 2 |  | 1,583 |  |  | 1,181 |
Corporate Equities |  | Level 1 |  | 1,839 |  |  | 1,594 |
Fair value of plan assets |  |  |  | $ | 7,819 |  |  | $ | 6,974 |
Total pension and retirement expense was as follows for each of the years ended December 31:
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Cost components: |  |  |  |  |  |
Service cost |  | $ | (15 | ) |  | $ | (223 | ) |  | $ | (265 | )
Interest cost |  | (386 | ) |  | (406 | ) |  | (466 | )
Expected return on plan assets |  | 531 |  |  | 517 |  |  | 615 |
Net amortization and deferral |  | (122 | ) |  | (184 | ) |  | (284 | )
Settlement recognition |  | 47 |  |  | — |  |  | (536 | )
Total net periodic pension cost |  | $ | 55 |  |  | $ | (296 | ) |  | $ | (936 | )
The Company has a Supplemental Executive Retirement Plan, or SERP, to restore to executives designated by the Compensation Committee of the Board of Directors the full benefits under the pension plan that would otherwise be restricted by certain limitations now imposed under the Internal Revenue Code. The SERP is currently unfunded. The Company in April 2017, froze the SERP plan as it relates to the accrual of additional benefits resulting in a SERP liability adjustment, improving our other comprehensive loss position by $328,000. The following SERP benefit information is as of December 31:
($ in thousands) |  | 2017 |  | 2016
Change in benefit obligation - SERP |  |  |  |
Benefit obligation at beginning of year |  | $ | 8,015 |  |  | $ | 7,999 |
Service cost |  | — |  |  | — |
Interest cost |  | 287 |  |  | 323 |
Actuarial gain/assumption changes |  | 466 |  |  | 129 |
Benefits paid |  | (444 | ) |  | (436 | )
Curtailments |  | (565 | ) |  | — |
Benefit obligation at end of year |  | $ | 7,759 |  |  | $ | 8,015 |
Accumulated benefit obligation at end of year |  | $ | 7,759 |  |  | $ | 7,482 |
Funded status - liability |  | $ | (7,759 | ) |  | $ | (8,015 | )
($ in thousands) |  | 2017 |  | 2016
Amounts recorded in stockholders’ equity |  |  |  |
Net actuarial loss (gain) |  | $ | 1,935 |  |  | $ | 2,248 |
Prior service cost |  | — |  |  | — |
Total amount recorded |  | $ | 1,935 |  |  | $ | 2,248 |
Amount recorded, net taxes |  | $ | 1,161 |  |  | $ | 1,349 |
Other changes in benefit obligations recognized in other comprehensive income for 2017 and 2016 include the following components:
($ in thousands) |  | 2017 |  | 2016
Net (gain) loss |  | $ | (101 | ) |  | $ | 129 |
Recognition of net actuarial gain or (loss) |  | (212 | ) |  | (343 | )
Total changes |  | $ | (313 | ) |  | $ | (214 | )
Changes, net of taxes |  | $ | 188 |  |  | $ | 638 |
The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year ($ in thousands):
Amortization net actuarial gain or (loss) | $ | 63 |
Based on actuarial estimates, it is expected that annual SERP benefit payments will be as follows ($ in thousands):
2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Thereafter
$ | 526 |  |  | $ | 492 |  |  | $ | 487 |  |  | $ | 481 |  |  | $ | 475 |  |  | $ | 2,497 |
The weighted-average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of projected benefits obligation was 3.40% and 0.0% for 2017, 3.90% and 3.5% for 2016, and 4.15% and 3.5% for 2015. Total pension and retirement expense was as follows for each of the years ended December 31:
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Cost components: |  |  |  |  |  |
Service cost |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  | 287 |  |  | 323 |  |  | 278 |
Net amortization and deferral |  | 211 |  |  | 343 |  |  | 337 |
Total net periodic pension cost |  | $ | 498 |  |  | $ | 666 |  |  | $ | 615 |

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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