Components of Net Periodic Benefit Costs

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Components of Periodic Benefit Costs

Components of Net Periodic Benefit Cost

Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") and Post-retirement Plan

The Company maintains a single employer, tax-qualified defined benefit pension plan (the "Pension Plan") which covers full-time employees that satisfy the Pension Plan's eligibility requirements. The benefits are based on years of service and the employee's average compensation for the highest five consecutive years of employment. Effective October 1, 2018, employees hired by the Bank are not eligible to participate in the Bank's Pension Plan as the plan has been closed to new employees as of that date.

The Company also has a Retirement Income Maintenance Plan (the "RIM "Plan) which is a non-qualified defined benefit plan which provides benefits to all employees of the Company if their benefits under the Pension Plan are limited by Internal Revenue Code 415 and 401(a)(17).    

13.    Components of Net Periodic Benefit Cost (continued)

In addition, the Company provides certain health care and life insurance benefits to eligible retired employees under a Post-retirement Plan. The Company accrues the cost of retiree health care and other benefits during the employees’ period of active service. Effective January 1, 2019, the Post-retirement Plan has been closed to new hires. The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program.

Net periodic benefit (income) cost for Pension Plan, RIM Plan, Post-retirement Plan and split-dollar life insurance arrangement plan benefits for the three and six months ended June 30, 2020 and 2019, includes the following components:

	For the Three Months Ended June 30,
	Pension Plan						RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2020			2019			2020		2019		2020		2019		2020		2019		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	1,937		$	1,501		$	67	$	53	$	99	$	84	$	120	$	88	Compensation and employee benefits
Interest cost	2,031			2,194			102		116		171		207		131		114		Other non-interest expense
Expected return on plan assets	(5,737		)	(4,727		)	—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—			—			—		—		—		—		14		14		Other non-interest expense
Net loss	781			765			99		61		77		37		113		62		Other non-interest expense
Net periodic (income) benefit cost	$	(988	)	$	(267	)	$	268	$	230	$	347	$	328	$	378	$	278

	For the Six Months Ended June 30,
	Pension Plan						RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2020			2019			2020		2019		2020		2019		2020		2019		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	3,874		$	3,002		$	134	$	106	$	198	$	168	$	226	$	176	Compensation and employee benefits
Interest cost	4,062			4,388			204		232		342		414		245		228		Other non-interest expense
Expected return on plan assets	(11,474		)	(9,454		)	—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—			—			—		—		—		—		28		28		Other non-interest expense
Net loss	1,562			1,530			198		122		154		74		226		124		Other non-interest expense
Net periodic (income) benefit cost	$	(1,976	)	$	(534	)	$	536	$	460	$	694	$	656	$	725	$	556

For the three and six months ended June 30, 2020, no contributions were made to the Pension Plan. The net periodic cost (income) for pension benefits, other post-retirement and split dollar life insurance benefits for the three and six months ended June 30, 2020 were calculated using the most recent available benefit valuations.

13.    Components of Net Periodic Benefit Cost (continued)

Through the acquisition of Roselle, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being a former president of Roselle Bank. For the three and six months ended June 30, 2020 the Company recorded a net periodic benefit cost of $4,000 in connection with this plan.