Pension and Supplemental Executive Retirement Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Pension and Supplemental Executive Retirement Plans

Note 12 – Pension and Supplemental Executive Retirement Plans

The Company participates 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 the 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%.

Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of June 30, 2020 and 2019 is as follows:

(Dollars in thousands)	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019		Three Months Ended June 30, 2020		Three Months Ended June 30, 2019
Service cost	$	—	$	—	$	—	$	—
Interest cost	182		196		91		98
Expected Return on Plan Assets	(218)		(204)		(109)		(102)
Amortization of Net Actuarial Loss	210		136		105		68
Amortization of Prior Service Cost	—		—		—		—
Net Periodic Benefit Cost	$	174	$	128	$	87	$	64
Contributions Paid	$	468	$	180	$	119	$	90

On June 19, 2017, the Company and MVB Mortgage approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief Executive Officer of MVB Mortgage is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. If executive completes three years of continuous employment with MVB Mortgage 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 $1.0 million and $783 thousand as of June 30, 2020 and December 31, 2019, respectively. Service cost was $109 thousand and $102 thousand for the three-month periods ended June 30, 2020 and 2019, respectively. Service cost was $219 thousand and $203 thousand for the six-month periods ended June 30, 2020 and 2019, respectively.