XML 39 R25.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2023
Benefit Plans [Abstract] |
Benefit Plans | Note 17. Benefit Plans The Bank has a 401(k) plan which includes an auto enrollment feature and covers all employees of the Bank who have completed four months of service. Employee contributions to the plan are matched at 100% up to 4% of each participant’s deferrals plus 50% of the next 2% of deferrals from participants’ eligible compensation. Under this plan, the maximum amount of employee contributions in any given year is defined by Internal Revenue Service regulations. In addition, a 100% discretionary profit-sharing contribution of up to 2% of each employee’s eligible compensation is possible provided net income targets are achieved. The related expense for the 401(k) plan, and the discretionary profit-sharing plan was $1.3 million in 2023 and $1.4 million in 2022. This expense is recorded in the Salary and employee benefits line of the Consolidated Statements of Income. The Bank has a noncontributory defined benefit pension plan covering employees hired prior to April 1, 2007 and the plan was closed to new participants on this date. Benefits are based on years of service and the employee’s compensation using a career average formula. The Bank’s funding policy is to contribute the annual amount required to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Contributions are intended to provide not only for the benefits attributed to service to date but also for those expected to be earned in the future. Employees who are eligible for pension benefits may elect to receive an annuity style payment or a lump-sum payout of their pension benefits. Pension service costs are recorded in Salary and benefits expense while all other components of net periodic pension costs are recorded in other expense. For the next fiscal year, the estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit costs is $0. The Bank uses December 31 as the measurement date for its pension plan. The Bank’s Pension Committee reviews and determines all the assumptions used to determine the benefit obligations and expense annually. Historical investment returns play a significant role in determining the expected long-term rate of return on Plan assets. The following table sets forth the plan’s funded status, based on the 2022 actuarial valuations:
|  | For the Years Ended December 31
(Dollars in thousands) |  | 2023 |  | 2022
Change in projected benefit obligation |  |  |  |  |  |
Benefit obligation at beginning of measurement year |  | $ | 13,865 |  | $ | 19,002
Service cost |  |  | 216 |  |  | 342
Interest cost |  |  | 806 |  |  | 672
Actuarial (gain) loss |  |  | (214) |  |  | (4,201)
Benefits paid |  |  | (1,544) |  |  | (1,950)
Benefit obligation at end of measurement year |  |  | 13,129 |  |  | 13,865
Change in plan assets |  |  |  |  |  |
Fair value of plan assets at beginning of measurement year |  |  | 13,779 |  |  | 18,462
Actual return on plan assets net of expenses |  |  | 1,727 |  |  | (2,733)
Benefits paid |  |  | (1,544) |  |  | (1,950)
Fair value of plan assets at end of measurement year |  |  | 13,962 |  |  | 13,779
Funded status of projected benefit obligation |  | $ | 833 |  | $ | (86)
|  | For the Years Ended December 31
|  | 2023 |  | 2022
Assumptions used to determine benefit obligations: |  |  |  |  |  |
Discount rate |  |  | 5.96% |  |  | 6.17%
Rate of compensation increase |  |  | 6.00% |  |  | 6.00%
Expected long-term return on plan assets |  |  | 6.00% |  |  | 6.00%
(Dollars in thousands) |  |  |  |  |  |
Amounts recognized in accumulated other comprehensive |  | For the Years Ended December 31
income (loss), net of tax |  | 2023 |  | 2022
Net actuarial loss |  | $ | (2,406) |  | $ | (3,423)
Tax effect |  |  | 505 |  |  | 719
Net amount recognized in accumulated other comprehensive loss |  | $ | (1,901) |  | $ | (2,704)
‎
(Dollars in thousands) |  | For the Years Ended December 31
Components of net periodic pension cost |  | 2023 |  | 2022
Service cost |  | $ | 216 |  | $ | 342
Interest cost |  |  | 806 |  |  | 672
Expected return on plan assets |  |  | (923) |  |  | (994)
Recognized net actuarial loss |  |  | — |  |  | 598
Net periodic pension cost |  |  | 99 |  |  | 618
Settlement expense |  |  | — |  |  | 290
Total net periodic pension cost |  | $ | 99 |  | $ | 908
|  | For the Years Ended December 31
|  | 2023 |  | 2022
Assumptions used to determine net periodic benefit cost: |  |  |  |  |  |
Discount rate |  |  | 6.17% |  |  | 3.71%
Rate of compensation increase |  |  | 6.00% |  |  | 5.00%
Expected long-term return on plan assets |  |  | 6.00% |  |  | 6.00%
Asset allocations: |  |  |  |  |  |
Cash and cash equivalents |  |  | 3% |  |  | 3%
Common stocks |  |  | 36% |  |  | 33%
Corporate bonds |  |  | 14% |  |  | 14%
Municipal bonds |  |  | 28% |  |  | 28%
Investment fund - debt |  |  | 2% |  |  | 6%
Investment fund - equity |  |  | 13% |  |  | 14%
Deposit in immediate participation guarantee contract |  |  | 4% |  |  | 2%
Total |  |  | 100% |  |  | 100%
The following methods and assumptions were used to estimate the fair values of the assets held by the plan. See Note 22 for additional information on the fair value hierarchy. Cash and Cash Equivalents: The carrying value of this asset is considered to approximate its fair value (Level 1). Equity Securities, Investment Funds (Debt and Equity): The fair value of assets in these categories are determined using quoted market prices from nationally recognized markets (Level 1). Bonds (Corporate and Municipal): Fair values of these assets was primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models (Level 2). Immediate Participation Guarantee Contract: The carrying value of this asset is considered to approximate its fair value. (Level 1). Cash Surrender Value of Life Insurance: The cash surrender value of this asset is considered to approximate its fair value. However, the inputs used to determine the cash surrender value are not readily observable in the market (Level 3). The following table sets forth by level, within the fair value hierarchy, the Plan's investments at fair value as of December 31, 2023 and 2022. For more information on the levels within the fair value hierarchy, please refer to Note 22.
(Dollars in Thousands) |  | December 31, 2023
Asset Description |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents |  | $ | 457 |  | $ | 457 |  | $ | — |  | $ | —
Equity securities |  |  | 4,978 |  |  | 4,978 |  |  | — |  |  | —
Corporate bonds |  |  | 1,961 |  |  | — |  |  | 1,961 |  |  | —
Municipal bonds |  |  | 3,911 |  |  | — |  |  | 3,911 |  |  | —
Investment fund - debt |  |  | 274 |  |  | 274 |  |  | — |  |  | —
Investment fund - equity |  |  | 1,831 |  |  | 1,831 |  |  | — |  |  | —
Deposit in immediate participation guarantee contract |  |  | 537 |  |  | 537 |  |  | — |  |  | —
Cash surrender value of life insurance |  |  | 13 |  |  | — |  |  | — |  |  | 13
Total assets |  | $ | 13,962 |  | $ | 8,077 |  | $ | 5,872 |  | $ | 13
(Dollars in Thousands) |  | December 31, 2022
Asset Description |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents |  | $ | 464 |  | $ | 464 |  | $ | — |  | $ | —
Equity securities |  |  | 4,502 |  |  | 4,502 |  |  | — |  |  | —
Corporate bonds |  |  | 1,915 |  |  | — |  |  | 1,915 |  |  | —
Municipal bonds |  |  | 3,794 |  |  | — |  |  | 3,794 |  |  | —
Investment fund - debt |  |  | 766 |  |  | 766 |  |  | — |  |  | —
Investment fund - equity |  |  | 1,935 |  |  | 1,935 |  |  | — |  |  | —
Deposit in immediate participation guarantee contract |  |  | 375 |  |  | 375 |  |  | — |  |  | —
Cash surrender value of life insurance |  |  | 28 |  |  | — |  |  | — |  |  | 28
Total assets |  | $ | 13,779 |  | $ | 8,042 |  | $ | 5,709 |  | $ | 28
The following table sets forth a summary of the changes in the fair value of the Plan's level 3 investments for the years ended December 31, 2023 and 2022:
| Cash Value of Life Insurance
| December 31
(Dollars in thousands) | 2023 |  | 2022
Balance at the beginning of the period | $ | 28 |  | $ | 28
Unrealized gain (loss) relating to investments held at the reporting date |  | — |  |  | —
Purchases, sales, issuances and settlement, net |  | (15) |  |  | —
Balance at the end of the period | $ | 13 |  | $ | 28
Contributions The Bank does not expect to make any contributions in 2024. Estimated future benefit payments at December 31, 2023 (Dollars in Thousands)
2024 |  | $ | 931
2025 |  |  | 1,219
2026 |  |  | 1,562
2027 |  |  | 1,612
2028 |  |  | 1,125
2029-2033 |  |  | 4,823

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