Schedule of pension plan weighted average assets allocation

Our pension plan’s weighted average asset allocation at December 31, 2022 and 2021, by asset category, was as follows:


	Plan Assets at December 31,
	2022		2021
Asset Category:
Equity Securities	57	%	60	%
Fixed Income Securities	31	%	30	%
Other	12	%	10	%
Total	100	%	100	%

Schedule of change in benefit obligation and plan assets

The following is a reconciliation of the change in benefit obligation and plan assets of both the defined benefit pension plan and the unfunded supplemental pension plan for the years ended December 31, 2022 and 2021:


	Defined Benefit Pension Plan				Supplemental Pension Plan
	2022		2021		2022		2021

	(Dollars in thousands)
Change in projected benefit obligation
Projected benefit obligation, beginning of year	$	52,507	$	56,026	$	20,343	$	21,125
Service cost		445		382		—		—
Interest cost		1,243		1,047		511		440
Plan settlement		—		—		(4,276)		—
Actuarial gain		(12,028)		(2,366)		(3,864)		(840)
Benefits paid		(2,558)		(2,582)		(342)		(382)
Projected benefit obligation, end of year	$	39,609	$	52,507	$	12,372	$	20,343

Change in plan assets
Fair value of plan assets, beginning of year	$	44,582	$	43,144	$	—	$	—
Actual return on plan assets		(5,652)		4,402		—		—
Administrative expenses		(445)		(382)		—		—
Contributions		—		—		4,618		382
Plan settlement		—		—		(4,276)		—
Benefits paid		(2,558)		(2,582)		(342)		(382)
Fair value of plan assets, end of year	$	35,927	$	44,582	$	—	$	—
Funded status of plan	$	(3,682)	$	(7,925)	$	(12,372)	$	(20,343)

Amounts recognized in the consolidated balance sheets consist of:
Accrued liabilities - other	$	—	$	—	$	(531)	$	(492)
Long-term pension liability		(3,682)		(7,925)		(11,841)		(19,851)
Net amount recognized	$	(3,682)	$	(7,925)	$	(12,372)	$	(20,343)

Amounts recognized in accumulated other comprehensive loss consist of:
Accumulated loss, net of income tax benefit of $3,382, $4,331, $672, and $1,976, respectively	$	9,629	$	12,328	$	1,914	$	5,624
Prior service cost net of income tax benefit of $0, $0, $19 and $20, respectively		—		—		54		59
Net amount recognized	$	9,629	$	12,328	$	1,968	$	5,683

Schedule of company's pension expense

The components of pension expense (benefit) for the years ended December 31, 2022 and 2021, were:


	2022		2021

	(Dollars in thousands)
Service cost	$	445	$	382
Interest cost		1,754		1,487
Expected return on plan assets		(2,896)		(2,907)
Pension settlement charge		894		—
Net amortization and deferral		875		1,012
Pension expense (benefit)	$	1,072	$	(26)

Schedule of fair value hierarchy

The following table summarizes the fair value of pension plan assets at December 31, 2022, by asset category within the fair value hierarchy (for further level information, see Note 4):


	December 31, 2022
	Quoted Prices		Significant		Significant
	in Active Markets		Observable Inputs		Unobservable Inputs
	Level 1		Level 2		Level 3		Total

	(Dollars in thousands)
Common stocks	$	14,170	$	1,567	$	—	$	15,737
Preferred stocks		235		3		—		238
Exchange traded funds		4,656		—		—		4,656
Corporate obligations		—		4,778		—		4,778
State and municipal obligations		—		250		—		250
Pooled fixed income funds		5,541		—		—		5,541
U.S. government securities		—		158		—		158
Cash and cash equivalents		4,488		—		—		4,488
Subtotal	$	29,090	$	6,756	$	—	$	35,846
Other assets ⁽¹⁾								81
Total							$	35,927

⁽¹⁾ This category represents trust receivables that are not leveled.

The following table summarizes the fair value of pension plan assets at December 31, 2021, by asset category within the fair value hierarchy (for further level information, see Note 4):


	December 31, 2021
	Quoted Prices		Significant		Significant
	in Active Markets		Observable Inputs		Unobservable Inputs
	Level 1		Level 2		Level 3		Total

	(Dollars in thousands)
Common stocks	$	18,493	$	1,934	$	—	$	20,427
Preferred stocks		247		31		—		278
Exchange traded funds		6,324		—		—		6,324
Corporate obligations		—		4,795		—		4,795
State and municipal obligations		—		512		—		512
Pooled fixed income funds		6,953		—		—		6,953
U.S. government securities		—		659		—		659
Cash and cash equivalents		4,573		—		—		4,573
Subtotal	$	36,590	$	7,931	$	—	$	44,521
Other assets ⁽¹⁾								61
Total							$	44,582

⁽¹⁾ This category represents trust receivables that are not leveled.