Retirement Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

The Company has a Supplemental Executive Retirement Plan (“SERP”) covering certain members of management.

The net SERP pension benefit was approximately $148,000 in 2021 and cost was approximately $697,000 in 2020. The unfunded benefit obligation, which was included in other liabilities, was approximately $6.1 million at December 31, 2021 and $6.5 million at December 31, 2020.

The benefit obligation at December 31, 2021 and December 31, 2020 was calculated as follows:

	2021		2020
	(Dollars in thousands)
Benefit obligation, January 1	$	6,482	$	5,949
Service (benefit)/cost	(498)		361
Interest cost	350		336
Benefits paid	(233)		(164)
Accrued liability at December 31	$	6,101	$	6,482

The net SERP pension benefit for 2021 and cost for 2020 was calculated as follows:

	2021		2020
	(Dollars in thousands)
Service (benefit)/cost	$	(498)	$	361
Interest cost	350		336
	$	(148)	$	697

The service costs for 2021 and 2020 are included in the compensation cost in the income statement. The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for 2021 and 2020. Annual benefit payments are estimated at $480,228 for 2022, $721,410 for 2023, $721,410 for 2024, $721,410 for 2024, $721,410 for 2025 and $4.9 million thereafter.

The Company has a 401(k) Plan covering substantially all employees. Under the Plan, the Company is required to contribute 3% of all qualifying employees’ eligible salary to the Plan. The Plan expense in 2021 was $222,000 and $238,000 in 2020.