XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.22.0.1

PENSION PLAN | 12 Months Ended
--- | ---
Dec. 31, 2021
Retirement Benefits [Abstract] |
PENSION PLAN | Note 11 – Pension Plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee’s compensation. Accruals under this plan were frozen as of May 31, 2014. Freezing the plan resulted in a re-measurement of the pension obligations and plan assets as of the freeze date. The pension obligation was re-measured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.46%. On June 19, 2017, we approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief Executive Officer of Potomac Mortgage Group ("PMG") is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. If the executive completes three years of continuous employment prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive installments of $10.0 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.3 million and $1.2 million as of December 31, 2021 and 2020, respectively. Service cost was $48.8 thousand and $0.2 million in 2021 and 2020, respectively. Pension expense was $0.3 million, $0.3 million and $0.3 million in 2021, 2020 and 2019, respectively. Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2021 and 2020 is as follows:
(Dollars in thousands) |  | 2021 |  | 2020
Change in benefit obligation |  |  |  |
Benefit obligation at beginning of year |  | $ | 12,715 |  |  | $ | 11,435 |
Interest cost |  | 313 |  |  | 365 |
Actuarial loss |  | 143 |  |  | (54) |
Assumption changes |  | (649) |  |  | 1,255 |
Benefits paid |  | (292) |  |  | (286) |
Benefit obligation at end of year |  | $ | 12,230 |  |  | $ | 12,715 |
Change in plan assets: |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 7,096 |  |  | $ | 6,165 |
Actual return on plan assets |  | 952 |  |  | 511 |
Employer contribution |  | 3,835 |  |  | 706 |
Benefits paid |  | (292) |  |  | (286) |
Fair value of plan assets at end of year |  | $ | 11,591 |  |  | $ | 7,096 |
Funded status |  | $ | (639) |  |  | $ | (5,619) |
Unrecognized net actuarial loss |  | 5,314 |  |  | 6,591 |
Prepaid pension cost recognized |  | $ | 4,675 |  |  | $ | 972 |
Accumulated benefit obligation |  | $ | 12,230 |  |  | $ | 12,715 |
At December 31, 2021, 2020 and 2019, the weighted-average assumptions used to determine the benefit obligation are as follows:
|  | 2021 |  | 2020 |  | 2019
Discount rate |  | 2.83 | % |  | 2.50 | % |  | 3.24 | %
Rate of compensation increase |  | N/A |  | N/A |  | N/A
The components of net periodic pension cost are as follows:
(Dollars in thousands) |  | 2021 |  | 2020 |  | 2019
Interest cost |  | $ | 313 |  |  | $ | 365 |  |  | $ | 392 |
Expected return on plan assets |  | (689) |  |  | (438) |  |  | (407) |
Amortization of net actuarial loss |  | 507 |  |  | 420 |  |  | 271 |
Net periodic pension cost |  | $ | 131 |  |  | $ | 347 |  |  | $ | 256 |
For the years December 31, 2021, 2020 and 2019, the weighted-average assumptions used to determine net periodic pension cost are as follows:
|  | 2021 |  | 2020 |  | 2019
Discount rate |  | 2.83 | % |  | 2.50 | % |  | 3.24 | %
Expected long-term rate of return on plan assets |  | 6.75 | % |  | 6.75 | % |  | 6.75 | %
Rate of compensation increase |  | N/A |  | N/A |  | N/A
Our pension plan asset allocations at December 31, 2021 and 2020 are as follows:
|  | 2021 |  | 2020
Plan Assets |  |  |  |
Cash |  | 3 | % |  | 9 | %
Fixed income |  | 25 | % |  | 20 | %
Alternative investments |  | 29 | % |  | 19 | %
Domestic equities |  | 25 | % |  | 27 | %
Foreign equities |  | 18 | % |  | 24 | %
Real estate investment trusts |  | — | % |  | 1 | %
Total |  | 100 | % |  | 100 | %
The following table sets forth by level within the fair value hierarchy, as defined in Note 18 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2021:
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
Cash |  | $ | 348 |  |  | $ | — |  |  | $ | — |  |  | $ | 348 |
Fixed income |  | 2,898 |  |  | — |  |  | — |  |  | 2,898 |
Alternative investments |  | — |  |  | — |  |  | 3,361 |  |  | 3,361 |
Domestic equities |  | 2,898 |  |  | — |  |  | — |  |  | 2,898 |
Foreign equities |  | 2,086 |  |  | — |  |  | — |  |  | 2,086 |
Total assets at fair value |  | $ | 8,230 |  |  | $ | — |  |  | $ | 3,361 |  |  | $ | 11,591 |
The following table sets forth by level, within the fair value hierarchy, as defined in Note 18 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2020:
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
Cash |  | $ | 639 |  |  | $ | — |  |  | $ | — |  |  | $ | 639 |
Fixed income |  | 1,419 |  |  | — |  |  | — |  |  | 1,419 |
Alternative investments |  | — |  |  | — |  |  | 1,348 |  |  | 1,348 |
Domestic equities |  | 1,916 |  |  | — |  |  | — |  |  | 1,916 |
Foreign equities |  | 1,703 |  |  | — |  |  | — |  |  | 1,703 |
Real estate investment trusts |  | — |  |  | — |  |  | 71 |  |  | 71 |
Total assets at fair value |  | $ | 5,677 |  |  | $ | — |  |  | $ | 1,419 |  |  | $ | 7,096 |
Investment in government securities and short-term investments are valued at the closing price reported on the active market on which the individual securities are traded. Alternative investments and investment in debt securities are valued at quoted prices which are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while this plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table includes our best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:
(Dollars in thousands) |  | Cash Flow
Contributions for the period of January 1, 2022 through December 31, 2022 |  | $ | — |
Estimated future benefit payments reflecting expected future service |  |
2022 |  | $ | 343 |
2023 |  | $ | 405 |
2024 |  | $ | 426 |
2025 |  | $ | 453 |
2026 |  | $ | 523 |
2027 through 2031 |  | $ | 2,718 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration