Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Changes in the Projected Benefit Obligation and Plan Assets of the Corporation’s Pension and Postretirement Plans

The following schedule sets forth the changes in the projected benefit obligation and plan assets of the Corporation's Plans:



	Pension Plan						Postretirement Plan						SERP
(Dollars in thousands)	2018			2017			2018			2017			2018			2017
Projected benefit obligation:
Benefit obligation at beginning of year	$	121,361		$	123,968		$	2,512		$	2,601		$	2,423		$	2,567
Service cost	—			639			3			5			—			61
Interest cost	4,356			4,966			82			94			12			69
Net actuarial loss (gain)	(7,048		)	10,131			(208		)	10			(36		)	(274		)
Benefits paid	(7,237		)	(6,432		)	(189		)	(198		)	(2,062		)	—
Curtailment	—			(11,911		)	—			—			—			—
Benefit obligation at end of year	111,432			121,361			2,200			2,512			337			2,423
Fair value of plan assets:
Fair value of plan assets at beginning of year	145,901			132,751			—			—			—			—
Actual return on plan assets	(10,312		)	19,582			—			—			—			—
Employer contributions	—			—			—			198			—			—
Benefits paid	(7,237		)	(6,432		)	—			(198		)	—			—
Fair value of plan assets at end of year	128,352			145,901			—			—			—			—
Funded (unfunded) status at December 31	$	16,920		$	24,540		$	(2,200	)	$	(2,512	)	$	(337	)	$	(2,423	)
Accumulated benefit obligation	$	111,432		$	121,361		$	2,200		$	2,512		$	337		$	2,423

Schedule of Weighted-average rate assumptions of the Pension and Postretirement Plans

Weighted-average rate assumptions of the Corporation's Plans follow:



	Pension Plan						Postretirement Plan						SERP
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Discount rate used in determining benefit obligation — December 31	4.32	%	3.68	%	4.22	%	4.11	%	3.41	%	3.79	%	4.32	%	3.38	%	3.63	%
Discount rate used in determining expense	3.68		4.22		4.55		3.41		3.79		4.23		—		—		4.51
Discount rate used in determining expense — prior to remeasurement	—		3.81		—		—		—		—		3.38		3.63		2.87
Expected long-term return on Pension Plan assets	6.50		6.75		6.75		—		—		—		—		—		—
Rate of compensation increase used in determining benefit obligation — December 31	—		—		3.50		—		—		—		—		—		3.50
Rate of compensation increase used in determining pension expense	—		3.50		3.50		—		—		—		—		3.50		3.50
Year 1 increase in cost of postretirement benefits	—		—		—		7.50		6.50		7.00		—		—		—

Schedule of Net periodic Pension Cost (Income) of the Pension and Postretirement Plans

Net periodic pension cost (income) of the Corporation's Plans was as follows for the years ended December 31:



	Pension Plan									Postretirement Plan									SERP
(Dollars in thousands)	2018			2017			2016			2018			2017			2016			2018			2017		2016
Service cost	$	—		$	639		$	1,041		$	3		$	5		$	9		$	—		$	61	$	77
Interest cost	4,356			4,966			5,335			82			94			132			12			69		92
Expected return on plan assets	(8,879		)	(8,938		)	(8,562		)	—			—			—			—			—		—
Amortization of prior service credit	—			—			—			—			—			117			—			—		—
Amortization of net actuarial loss (gain)	710			1,837			2,259			(143		)	(162		)	(100		)	(7		)	77		78
Curtailment	—			1			—			—			—			—			—			—		—
Settlement ⁽¹⁾	—			—			—			—			—			—			—			322		120
Net cost (income)	$	(3,813	)	$	(1,495	)	$	73		$	(58	)	$	(63	)	$	158		$	5		$	529	$	367


⁽¹⁾	The settlement charge relates to the settlement of liabilities under the SERP for the retirement of the plan participant during the third quarter of 2017 and the change in control as a result of the merger with Talmer as of August 31, 2016.

Schedule of Estimated Future Benefit Payments Under the Pension and Postretirement Plans

The following schedule presents estimated future benefit payments for the next 10 years under the Corporation's Plans for retirees already receiving benefits and future retirees, assuming they retire and begin receiving unreduced benefits as soon as they are eligible:



(Dollars in thousands)	Pension Plan		Postretirement Plan		SERP
2019	$	6,387	$	241	$	22
2020	6,522		237		22
2021	6,680		231		22
2022	6,795		221		22
2023	6,895		209		22
2024 - 2028	35,908		853		106
Total	$	69,187	$	1,992	$	216

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage-point change in these rates would have the following effects:



	One Percentage-Point
(Dollars in thousands)	Increase		Decrease
Effect on total of service and interest cost component in 2017	$	7	$	(6	)
Effect on postretirement benefit obligation as of December 31, 2017	157		(143		)

Schedule of Allocation of Plan Assets

The Pension Plan's asset allocation by asset category was as follows:



	December 31,
Asset Category	2018		2017
Equity securities	67	%	68	%
Debt securities	26		28
Other	7		4
Total	100	%	100	%

The following schedule sets forth the fair value of the Pension Plan's assets and the level of the valuation inputs used to value those assets at December 31, 2018 and 2017:



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2018
Cash	$	8,770	$	—	$	—	$	8,770
Equity securities:
U.S. large- and mid-cap stocks⁽¹⁾	63,823		—		—		63,823
U.S. small-cap mutual funds	4,713		—		—		4,713
International large-cap mutual funds	11,091		—		—		11,091
Emerging markets mutual funds	6,439		—		—		6,439
Debt securities:
U.S. Treasury and government sponsored agency bonds and notes	—		547		—		547
Mutual funds⁽²⁾	32,969		—		—		32,969
Total	$	127,805	$	547	$	—	$	128,352
December 31, 2017
Cash	$	5,238	$	—	$	—	$	5,238
Equity securities:
U.S. large- and mid-cap stocks⁽¹⁾	68,909		—		—		68,909
U.S. small-cap mutual funds	5,377		—		—		5,377
International large-cap mutual funds	18,341		—		—		18,341
Emerging markets mutual funds	7,363		—		—		7,363
Debt securities:
U.S. Treasury and government sponsored agency bonds and notes	—		548		—		548
Mutual funds⁽²⁾	40,046		—		—		40,046
Other	79		—		—		79
Total	$	145,353	$	548	$	—	$	145,901


⁽¹⁾	Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding $3 billion.


⁽²⁾	Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries.

Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, Related to the Corporation’s Pension, Postretirement and Supplemental Plans

The following sets forth the changes in accumulated other comprehensive income (loss), net of tax, related to the Corporation's Pension Plan, Postretirement Plan and SERP during 2018:



(Dollars in thousands)	Pension Plan			Postretirement Plan		SERP			Total
Accumulated other comprehensive income (loss) at beginning of year	$	(20,483	)	$	744	$	(69	)	$	(19,808	)
Comprehensive income (loss) adjustment:
Net actuarial income (loss)	(9,032		)	51		23			(8,958		)
Comprehensive income (loss) adjustment	(9,032		)	51		23			(8,958		)
Accumulated other comprehensive income (loss) at end of year	$	(29,515	)	$	795	$	(46	)	$	(28,766	)

Schedule of Estimated Income (Loss) That Will Be Amortized From Accumulated Other Comprehensive Income (Loss) Into Net Periodic Cost

The estimated income (loss) that will be amortized from accumulated other comprehensive income (loss) into net periodic cost, net of tax, in 2019 is as follows:



(Dollars in thousands)	Pension Plan			Postretirement Plan		SERP			Total
Net gain (loss)	$	(444	)	$	143	$	(1	)	$	(302	)