XML 55 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Pension Plan | 12 Months Ended
--- | ---
Dec. 31, 2023
Retirement Benefits [Abstract] |
Pension Plan | Note 11 – Pension Plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan. Benefits are based on years of service and the employee’s compensation. Accruals under the plan were frozen as of May 31, 2014. Freezing the plan resulted in a remeasurement of the pension obligations and plan assets as of the freeze date. The pension obligation was remeasured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.5%. In June 2017, we approved a Supplemental Executive Retirement Plan (the “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. As the executive completed three years of continuous employment with PMG 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 monthly installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.4 million and $1.3 million at December 31, 2023 and 2022, respectively. Service costs were not material for any periods covered by this report. In February 2024, the SERP was terminated. Within the agreement, there is a one year provision for payment delay, as such the $1.8 million obligation is scheduled to be paid in February 2025. Net periodic pension income was $0.1 million in 2023. Net periodic pension expense was $0.3 million and $0.3 million in 2022 and 2021 respectively. Information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2023 and 2022 is as follows:
(Dollars in thousands) |  | 2023 |  | 2022
Change in benefit obligation |  |  |  |
Benefit obligation at beginning of year |  | $ | 8,829 |  |  | $ | 12,230 |
Interest cost |  | 450 |  |  | 341 |
Actuarial loss |  | 97 |  |  | 160 |
Assumption changes |  | 251 |  |  | (3,584) |
Benefits paid |  | (341) |  |  | (318) |
Benefit obligation at end of year |  | $ | 9,286 |  |  | $ | 8,829 |
Change in plan assets: |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 9,283 |  |  | $ | 11,591 |
Actual return gain (loss) on plan assets |  | 1,064 |  |  | (1,990) |
Benefits paid |  | (341) |  |  | (318) |
Fair value of plan assets at end of year |  | $ | 10,006 |  |  | $ | 9,283 |
Funded status |  | $ | 720 |  |  | $ | 454 |
Unrecognized net actuarial loss |  | 3,943 |  |  | 4,120 |
Prepaid pension cost recognized |  | $ | 4,663 |  |  | $ | 4,574 |
Accumulated benefit obligation |  | $ | 9,286 |  |  | $ | 8,829 |
At December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine the benefit obligation are as follows:
|  | 2023 |  | 2022 |  | 2021
Discount rate |  | 5.01 | % |  | 5.23 | % |  | 2.83 | %
Rate of compensation increase |  | n/a |  | n/a |  | n/a
The components of net periodic pension cost (income) are as follows:
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2021
Interest cost |  | $ | 450 |  |  | $ | 341 |  |  | $ | 313 |
Expected return on plan assets |  | (655) |  |  | (669) |  |  | (689) |
Amortization of net actuarial loss |  | 117 |  |  | 429 |  |  | 507 |
Net periodic pension cost (income) |  | $ | (88) |  |  | $ | 101 |  |  | $ | 131 |
For the years December 31, 2023, 2022 and 2021, the weighted-average assumptions used to determine net periodic pension cost (income) are as follows:
|  | 2023 |  | 2022 |  | 2021
Discount rate |  | 5.01 | % |  | 5.23 | % |  | 2.83 | %
Expected long-term rate of return on plan assets |  | 5.75 | % |  | 6.00 | % |  | 6.75 | %
Rate of compensation increase |  | n/a |  | n/a |  | n/a
Our pension plan asset allocations at December 31, 2023 and 2022 are as follows:
|  | 2023 |  | 2022
Plan Assets |  |  |  |
Cash |  | 5 | % |  | 7 | %
Fixed income |  | 30 | % |  | 28 | %
Alternative investments |  | 12 | % |  | 13 | %
Domestic equities |  | 31 | % |  | 26 | %
Foreign equities |  | 21 | % |  | 22 | %
Real estate investment trusts |  | 1 | % |  | 4 | %
Total |  | 100 | % |  | 100 | %
The following table sets forth by level within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2023:
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
Cash |  | $ | 500 |  |  | $ | — |  |  | $ | — |  |  | $ | 500 |
Fixed income |  | 3,002 |  |  | — |  |  | — |  |  | 3,002 |
Alternative investments |  | — |  |  | — |  |  | 1,201 |  |  | 1,201 |
Domestic equities |  | 3,102 |  |  | — |  |  | — |  |  | 3,102 |
Foreign equities |  | 2,101 |  |  | — |  |  | — |  |  | 2,101 |
Total |  | $ | 8,705 |  |  | $ | — |  |  | $ | 1,201 |  |  | $ | 9,906 |
Investments reported at net asset value 1 |  |  |  |  |  |  |  | 100 |
Total assets at fair value |  |  |  |  |  |  |  | $ | 10,006 |
1 Investments reported at net asset value include real estate investment trusts. The following table sets forth by level, within the fair value hierarchy, as defined in Note 19 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2022:
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
Cash |  | $ | 650 |  |  | $ | — |  |  | $ | — |  |  | $ | 650 |
Fixed income |  | 2,599 |  |  | — |  |  | — |  |  | 2,599 |
Alternative investments |  | — |  |  | — |  |  | 1,207 |  |  | 1,207 |
Domestic equities |  | 2,414 |  |  | — |  |  | — |  |  | 2,414 |
Foreign equities |  | 2,042 |  |  | — |  |  | — |  |  | 2,042 |
Total |  | $ | 7,705 |  |  | $ | — |  |  | $ | 1,207 |  |  | $ | 8,912 |
Investments reported at net asset value 1 |  |  |  |  |  |  |  | 371 |
Total assets at fair value |  |  |  |  |  |  |  | $ | 9,283 |
1 Investments reported at net asset value include real estate investment trusts. Investment in government securities, short-term investments, domestic equities and foreign equities are valued at the closing price reported on the active market on which the individual securities are traded. Alternative investments 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. Real estate investment trusts are valued at the net asset value of the trust at the reporting date. 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, 2024 through December 31, 2024 |  | $ | — |
Estimated future benefit payments reflecting expected future service |  |
2024 |  | $ | 433 |
2025 |  | $ | 466 |
2026 |  | $ | 554 |
2027 |  | $ | 560 |
2028 |  | $ | 575 |
2029 through 2033 |  | $ | 2,884 |

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/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration