EMPLOYEE RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

EMPLOYEE RETIREMENT PLANS

Schedule of pension plan weighted average assets allocation

The Company’s pension plan’s weighted average asset allocation at December 31, 2019 and 2018, by asset category, was as follows:

	Plan Assets at December 31,
	2019		2018
Asset Category:
Equity Securities	55	%	53	%
Fixed Income Securities	36	%	40	%
Other	9	%	7	%
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, 2019 and 2018:

	Defined Benefit Pension Plan				Supplemental Pension Plan
	2019		2018		2019		2018
	(Dollars in thousands)
Change in projected benefit obligation
Projected benefit obligation, beginning of year	$	45,010	$	49,375	$	15,891	$	17,176
Service cost		463		360		—		209
Interest cost		1,801		1,608		659		595
Actuarial loss (gain)		5,660		(4,039)		2,355		(1,601)
Benefits paid		(2,382)		(2,294)		(445)		(488)
Projected benefit obligation, end of year	$	50,552	$	45,010	$	18,460	$	15,891
Change in plan assets
Fair value of plan assets, beginning of year	$	37,353	$	38,369	$	—	$	—
Actual return on plan assets		6,528		(1,362)		—		—
Administrative expenses		(463)		(360)		—		—
Contributions		—		3,000		445		488
Benefits paid		(2,382)		(2,294)		(445)		(488)
Fair value of plan assets, end of year	$	41,036	$	37,353	$	—	$	—
Funded status of plan	$	(9,516)	$	(7,657)	$	(18,460)	$	(15,891)
Amounts recognized in the consolidated balance sheets consist of:
Accrued liabilities - other	$	—	$	—	$	(453)	$	(436)
Long-term pension liability		(9,516)		(7,657)		(18,007)		(15,455)
Net amount recognized	$	(9,516)	$	(7,657)	$	(18,460)	$	(15,891)
Amounts recognized in accumulated other comprehensive loss consist of:
Accumulated loss, net of income tax benefit of $4,478,  $4,082,  $1,684 and $1,102, respectively	$	12,745	$	11,616	$	4,792	$	3,136
Prior service cost, net of income tax liability of $0,  $0,  ($12) and ($28), respectively		—		—		(34)		(81)
Net amount recognized	$	12,745	$	11,616	$	4,758	$	3,055

Schedule of net periodic pension cost

Assumptions used in determining net periodic pension cost for the years ended December 31, 2019 and 2018 were:

	Defined Benefit Pension Plan				Supplemental Pension Plan
	2019		2018		2019		2018
Discount rate for determining projected benefit obligation	4.38	%	3.70	%	4.42	%	3.75	%
Discount rate in effect for determining service cost	—		—		—		3.83	%
Discount rate in effect for determining interest cost	4.05	%	3.33	%	4.19	%	3.51	%
Long-term rate of return on plan assets	7.00	%	7.00	%	—		—

Schedule of Company's net periodic pension cost

The components of net periodic pension cost for the years ended December 31, 2019 and 2018, were:

	2019		2018
	(Dollars in thousands)
Service cost	$	463	$	569
Interest cost		2,460		2,204
Expected return on plan assets		(2,502)		(2,711)
Net amortization and deferral		626		634
Net periodic pension cost	$	1,047	$	696

Schedule of projected benefit payments for the plans

Projected benefit payments for the plans at December 31, 2019, were estimated as follows:

	Defined Benefit		Supplemental
	Pension Plan		Pension Plan
	(Dollars in thousands)
2020	$	2,786	$	453
2021	$	2,802	$	489
2022	$	2,785	$	538
2023	$	2,833	$	699
2024	$	2,847	$	767
2025 - 2029	$	14,245	$	5,196

Schedule of fair value hierarchy

The following table summarizes the fair value of the Company’s pension plan assets at December 31, 2019, by asset category within the fair value hierarchy (for further level information, see Note 4):

	December 31, 2019
	Quoted Prices		Significant		Significant
	in Active Markets		Observable Inputs		Unobservable Inputs
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Common stocks	$	15,464	$	2,026	$	—	$	17,490
Preferred stocks		287		29		—		316
Exchange traded funds		5,213		—		—		5,213
Corporate obligations		—		4,626		—		4,626
State and municipal obligations		—		1,062		—		1,062
Pooled fixed income funds		7,598		—		—		7,598
U.S. government securities		—		364		—		364
Marketable CD’s		—		806		—		806
Cash and cash equivalents		3,470		—		—		3,470
Subtotal	$	32,032	$	8,913	$	—	$	40,945
Other assets (1)								91
Total							$	41,036

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

The following table summarizes the fair value of the Company’s pension plan assets at December 31, 2018, by asset category within the fair value hierarchy (for further level information, see Note 4):

	December 31, 2018
	Quoted Prices		Significant		Significant
	in Active Markets		Observable Inputs		Unobservable Inputs
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Common stocks	$	13,556	$	1,604	$	—	$	15,160
Preferred stocks		279		28		—		307
Exchange traded funds		4,454		—		—		4,454
Corporate obligations		—		4,568		—		4,568
State and municipal obligations		—		1,046		—		1,046
Pooled fixed income funds		7,767		—		—		7,767
U.S. government securities		—		286		—		286
Marketable CD’s		—		911		—		911
Cash and cash equivalents		2,748		—		—		2,748
Subtotal	$	28,804	$	8,443	$	—	$	37,247
Other assets (1)								106
Total							$	37,353

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