Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets

The funded status and amounts recognized in the Company’s Consolidated Financial Statements for the Defined Benefit Plan, the BEP, the DB SERP, and the ODRCP are set forth in the following table:


	As of and for the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of the year	$	362,530	$	501,507	$	361,147
Service cost (1)	24,474		31,382		31,660
Interest cost	17,559		10,582		5,694
Amendments	1,351		—		(1,106)
Actuarial loss (gain)	13,943		(133,282)		(1,697)
Acquisitions	—		—		125,854
Benefits paid	(20,493)		(47,659)		(20,045)
Benefit obligation at end of the year	$	399,364	$	362,530	$	501,507

Change in plan assets:
Fair value of plan assets at beginning of year	$	419,366	$	546,056	$	449,643
Actual return on plan assets	63,811		(91,474)		50,879
Acquisitions	—		—		63,468
Employer contribution	5,680		12,443		2,111
Benefits paid	(20,493)		(47,659)		(20,045)
Fair value of plan assets at end of year	468,364		419,366		546,056
Overfunded status	$	69,000	$	56,836	$	44,549

Reconciliation of funding status:
Past service credit	$	80,090	$	108,909	$	120,792
Unrecognized net loss	(69,697)		(99,002)		(128,402)
Prepaid benefit cost	58,607		46,929		52,159
Overfunded status	$	69,000	$	56,836	$	44,549

Accumulated benefit obligation	$	399,364	$	362,530	$	501,507

Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax:
Unrecognized past service credit	$	57,501	$	78,295	$	86,837
Unrecognized net loss	(50,039)		(71,172)		(92,308)
Net amount	$	7,462	$	7,123	$	(5,471)

(1)Includes service costs related to employees of our insurance agency business. Refer to the later discussion within the “Components of Net Periodic Benefit Cost” section within this Note for further discussion.

Defined Benefit Plan, Assumptions

The assumptions used in determining the benefit obligations at December 31, 2023 and 2022 were as follows:


	DB Plan				BEP				DB SERP				ODRCP
	As of December 31,				As of December 31,				As of December 31,				As of December 31,
	2023		2022		2023		2022		2023		2022		2023		2022
Discount rate	4.99	%	5.18	%	4.89	%	5.07	%	4.96	%	5.18	%	4.91	%	5.13	%
Rate of increase in compensation levels	4.50	%	4.50	%	4.50	%	4.50	%	—	%	—	%	—	%	—	%
Interest rate credit for determining projected cash balance	4.47	%	3.55	%	4.47	%	3.55	%	—	%	—	%	—	%	—	%

Schedule of Net Benefit Costs

The assumptions used in determining the net periodic benefit cost for the years ended December 31, 2023, 2022, and 2021 were as follows:


	DB Plan
	For the Year Ended December 31,
	2023		2022		2021
Discount rate - benefit cost	5.18	%	2.65	%	2.26	%
Rate of compensation increase	4.50	%	4.50	%	5.25	%
Expected rate of return on plan assets	7.50	%	7.00	%	7.50	%
Interest rate credit for determining projected cash balance	3.55	%	3.50	%	3.50	%


	BEP
	For the Year Ended December 31,
	2023		2022		2021
Discount rate - benefit cost	5.07	%	2.32	%	1.77	%
Rate of compensation increase	4.50	%	4.50	%	5.25	%
Interest rate credit for determining projected cash balance	3.55	%	3.50	%	3.50	%


	DB SERP
	For the Year Ended December 31,
	2023		2022		2021
Discount rate - benefit cost	5.18	%	2.68	%	1.63	%


	ODRCP
	For the Year Ended December 31,
	2023		2022		2021
Discount rate - benefit cost	5.13	%	2.32	%	1.81	%

Reconciliation of Interest in SBERA Common Collective

The table below presents a reconciliation of the Company’s interest in the SBERA common collective trust during the years indicated:


	For the Year Ended December 31,
	2023		2022
	(In thousands)
Balance at beginning of year	$	419,366	$	546,056
Net realized and unrealized gains and (losses)	63,811		(91,474)
Contributions	—		7,222
Benefits paid	(14,813)		(42,438)
Balance at end of year	$	468,364	$	419,366

Summary of Components of Net Pension Expense

The components of net pension expense for the plans for the periods indicated are as follows:


	For the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Components of net periodic benefit cost:
Service cost (1)	$	24,474	$	31,382	$	31,660
Interest cost	17,559		10,582		5,694
Expected return on plan assets	(30,127)		(35,486)		(33,333)
Past service credit	(11,560)		(11,882)		(11,796)
Recognized net actuarial loss	9,563		11,032		13,400
Curtailment (2)	(15,908)		—		—
Settlement	—		12,045		—
Net periodic benefit cost	$	(5,999)	$	17,673	$	5,625

(1)Includes service costs related to employees of our insurance agency business. Such service costs were included in net income from discontinued operations as such costs are no longer incurred by the Company following the sale of the insurance agency business in October 2023. All other costs included in the determination of the benefit obligation for the Defined Benefit Plan and the BEP were included in net income from continuing operations as the Bank will assume the related liability upon dissolution of its Eastern Insurance Group subsidiary. Service costs included in net income from discontinued operations and included in the above table were $5.1 million, $7.5 million, and $7.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.

(2)The pension curtailment gain recognized during the year ended December 31, 2023 is included in discounted operations. Refer to the below discussion under “Pension Curtailment and Settlement” for further discussion.

Schedule of Expected Benefit Payments

The following table summarizes estimated benefits to be paid from the Defined Benefit Plan and BEP for the plan years beginning on November 1, and the DB SERP and ODRCP for the plan years beginning January 1:


Year	(In thousands)
2024	$	46,490
2025	32,612
2026	33,261
2027	35,240
2028	37,175
In aggregate for 2029-2033	186,883

Schedule of Assets Held in Rabbi Trust

Assets held in rabbi trust accounts by plan type, at fair value, were as follows:


	As of December 31,
	2023		2022
	(In thousands)
DB SERP	$	16,349	$	17,209
BEP	18,656		11,734
ODRCP	2,819		3,670
DC SERP	20,785		17,764
Deferred compensation plans	28,826		25,909
Total rabbi trust assets	$	87,435	$	76,286

The following tables present the book value, net unrealized gain or loss, and market value of assets held in rabbi trust accounts by asset type:


	As of December 31, 2023						As of December 31, 2022
	Book Value		Unrealized Gain/(Loss)		Fair Value		Book Value		Unrealized Gain		Fair Value
Asset Type	(In thousands)
Cash and cash equivalents	$	12,269	$	—	$	12,269	$	5,575	$	—	$	5,575
Equities (1)	56,140		12,869		69,009		60,056		3,626		63,682
Fixed income	6,676		(519)		6,157		7,799		(770)		7,029
Total assets	$	75,085	$	12,350	$	87,435	$	73,430	$	2,856	$	76,286

(1)Equities include mutual funds and other exchange-traded funds.