The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. The Company also offers postretirement health care benefits for current and future retirees of the Bank. Certain employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligations for these plans.

	Pension Plan						Supplemental Retirement Plan
	2019			2018			2019			2018
	(dollars in thousands)
Change in projected benefit obligation
Obligation at beginning of year	$	40,522		$	43,943		$	8,830		$	9,204
Service cost		—			—			283			354
Interest cost		1,680			1,557			349			309
Actuarial loss/(gain)		4,670			(3,659	)		770			(499	)
Benefits paid		(1,471	)		(1,319	)		(610	)		(538	)
Obligation at end of year		45,401			40,522			9,622			8,830
Change in plan assets
Fair value at beginning of year		42,648			45,247			—			—
Actual return on plan assets		8,954			(1,280	)		—			—
Employer contribution		—			—			610			538
Benefits paid		(1,471	)		(1,319	)		(610	)		(538	)
Fair value at end of year		50,131			42,648			—			—
Funded status at end of year	$	4,730		$	2,126		$	(9,622	)	$	(8,830	)

	Pension Plan						Supplemental Retirement Plan
	2019			2018			2019		2018
	(dollars in thousands)
Net actuarial loss/(gain)	$	3,709		$	5,427		$	1,128	$	358
Prior service (benefit)		(7	)		(12	)		—		—
Total	$	3,702		$	5,415		$	1,128	$	358

Certain disaggregated information related to our retirement plans were as follows:

	Pension Plan				Supplemental Retirement Plan
	2019		2018		2019			2018
	(dollars in thousands)
Projected benefit obligation	$	45,401	$	40,522	$	9,622		$	8,830
Accumulated benefit obligation		45,401		40,522		9,207			8,567
Fair value of plan assets		50,131		42,648		—			—
Funded status at end of year		4,730		2,126		(9,622	)		(8,830	)

The components of net periodic benefit cost and amounts recognized in other comprehensive income/ (loss) were as follows:

	Pension Plan						Supplemental Retirement Plan
	2019			2018			2019		2018
	(dollars in thousands)
Net periodic benefit cost
Service cost	$	—		$	—		$	283	$	354
Interest cost		1,680			1,557			349		309
Expected return on assets		(2,721	)		(2,891	)		—		—
Amortization of prior service credit		(4	)		(4	)		—		—
Amortization of net actuarial loss/(gain)		154			106			—		4
Net periodic benefit cost		(891	)		(1,232	)		632		667
Amounts recognized in other comprehensive income/( loss)
Net actuarial loss/(gain)		(1,563	)		512			770		(499	)
Amortization of prior service credit		4			4					(4	)
Amortization of net actuarial gain		(154	)		(106	)		—		—
Total recognized in other comprehensive income/( loss)		(1,713	)		410			770		(503	)
Total recognized in net periodic benefit cost and other comprehensive income/( loss)	$	(2,604	)	$	(822	)	$	1,402	$	164

Weighted-average assumptions used to determine projected benefit obligations are as follows:

	Pension Plan						Supplemental Retirement Plan
	2019			2018			2019			2018
Discount rate		3.22	%		4.23	%		3.04	%		4.10	%
Rate of compensation increase	N/A			N/A				4.00	%		4.00	%

Weighted-average assumptions used to determine net periodic benefit cost are as follows:

	Pension Plan						Supplemental Retirement Plan
	2019			2018			2019			2018
Discount rate		4.23	%		3.58	%		4.10	%		3.39	%
Expected long-term return on plan assets		6.50	%		6.50	%	N/A			N/A
Rate of compensation increase	N/A			N/A				4.00	%		4.00	%

To develop the expected long-term rate of return on assets assumption for the Pension Plan, the Company considered the historical returns and the future expectations for returns for each asset class, as well as target asset allocations of the pension portfolio. Based on this analysis, the Company selected 6.50% as the long-term rate of return on asset assumption.

The Company maintains an Investment Policy for its Pension Plan. The objective of this policy is to seek a balance between capital appreciation, current income, and preservation of capital, with a longer term weighting towards equities because of the extended time horizon of the Pension Plan.

The Investment Policy guidelines suggest that the target asset allocation percentages are from 30% to 60% in domestic large cap equities, from 5% to 20% in domestic small/mid cap equities, from 0% to 20% in international equities, and from 20% to 50% in cash and fixed income.

The Company’s Pension Plan weighted-average asset allocations by asset category were as follows:

	December 31,
	2019			2018
Equity securities		53	%		60	%
Debt securities		36			35
Other		3			1
Cash and equivalents		8			4
Total		100	%		100	%

The three broad levels of fair values used to measure the Pension Plan assets are as follows:

The following table summarizes the various categories of the Pension Plan’s assets:

	Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Asset category
Cash and cash equivalents	$	4,834	$	—	$	—	$	4,834
Fixed Income		—		7,197		—		7,197
Equity securities
Common Stock
Large cap core		17,180		—		—		17,180
Mid cap core		—		—		—		—
Small cap core		2,627		—		—		2,627
Mutual funds
Domestic Equity		3,931		—		—		3,931
International		3,650		—		—		3,650
Domestic Fixed Income		10,712						10,712
Preferred Stock		—		—		—		—
Total	$	42,934	$	7,197	$	—	$	50,131

	Fair Value as of December 31, 2018
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Asset category
Cash and cash equivalents	$	3,520	$	—	$	—	$	3,520
Fixed Income		—		6,534		—		6,534
Equity securities
Common Stock
Large cap core		16,127		—		—		16,127
Mid cap core		—		—		—		—
Small cap core		2,090		—		—		2,090
Mutual funds
Domestic Equity		4,320		—		—		4,320
International		3,409		—		—		3,409
Domestic Fixed Income		6,648						6,648
Preferred Stock		—		—		—		—
Total	$	36,114	$	6,534	$	—	$	42,648

There were no transfers between fair value levels during the years ended December 31, 2019 and 2018.

The Company offers postretirement health care benefits for current and future retirees of the Bank. Employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligation for this plan. On November 7, 2019, the Company announced its decision to freeze the accrual of benefits to new hires within the plan.

	Postretirement Healthcare Plan
	2019			2018
	(dollars in thousands)
Change in projected benefit obligation
Obligation at beginning of year	$	598		$	617
Service cost		25			23
Interest cost		25			22
Actuarial loss/(gain)		76			(30	)
Benefits paid		(35	)		(34	)
Obligation at end of year		689			598
Change in plan assets
Fair value at beginning of year		—			—
Actual return on plan assets		—			—
Employer contribution		35			33
Benefits paid		(35	)		(33	)
Fair value at end of year		—			—
Funded status at end of year	$	(689	)	$	(598	)

Information for retirement plans with an accumulated benefit obligation in excess of plan assets:

The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows:

	Postretirement Healthcare Plan
	2019			2018
	(dollars in thousands)
Net periodic benefit cost
Service cost	$	25		$	23
Interest cost		25			22
Expected return on assets		—			—
Amortization of prior service credit		—			—
Amortization of net actuarial gain		(3	)		—
Net periodic benefit cost		47			45
Amounts recognized in other comprehensive income/( loss)
Net actuarial (gain) loss		76			(30	)
Amortization of prior service credit		—			—
Amortization of net actuarial gain		3			—
Total recognized in other comprehensive income/( loss)		79			(30	)
Total recognized in net periodic benefit cost and other comprehensive income/( loss)	$	126		$	15

Weighted-average assumptions used to determine projected benefit obligations are as follows:

Weighted-average assumptions used to determine net periodic benefit cost are as follows:

Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	Pension Plan		Supplemental Retirement Plan		Postretirement Healthcare Plan		Total
	(dollars in thousands)
Year-ended December 31,
2020	$	1,751	$	594	$	30	$	2,375
2021		1,813		591		30		2,434
2022		1,948		609		31		2,588
2023		2,061		605		31		2,697
2024		2,135		602		31		2,768
2025-2029 inclusive		11,784		2,916		166		14,866
Ten year total	$	21,492	$	5,917	$	319	$	27,728

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2019 are as follows:

	Pension Plan			Supplemental Retirement Plan		Postretirement Healthcare Plan		Total
	(dollars in thousands)
Prior service cost	$	(4	)	$	—	$	—	$	(4	)
Net (gain)/loss		—			—		—		—
Total	$	(4	)	$	—	$	—	$	(4	)

The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, eligible bonus, and eligible incentive, up from 3% in 2017. Employees are eligible to participate in the PSP on the first day of their initial date of service. Each year, the Company may also make a discretionary contribution to the PSP. In 2018, employees were eligible to participate in the discretionary contribution portion of the PSP after completing 12 months of employment, and 1,000 hours of service. The employee must be employed on the last day of the calendar year, or retire at the normal retirement age of 65 during the calendar year to receive the discretionary contribution. Effective in 2019, employees are eligible to participate in the discretionary contribution portion of the PSP on the first day of their initial date of service.

The Company has an Employee Stock Ownership Plan (“ESOP”) for its eligible employees. Employees are eligible to participate upon the attainment of age 21 and the completion of 12 months of service consisting of at least 1,000 hours. Purchases of the Company’s stock by the ESOP will be funded by employer contributions or reinvestment of cash dividends.

Total expenses related to the Profit Sharing and ESOP Plans for the years ended December 31, 2019, 2018 and 2017, amounted to approximately $2.8 million, $2.6 million, and $1.5 million, respectively.

For executives participating in the DC SERP plan, the Company made a discretionary contribution of 10% of each executive’s base salary and bonus to his or her account under the Company’s DC SERP, the Executive Deferred Compensation Plan. Total expenses related to the Company’s DC SERP for the years ended December 31, 2019, 2018 and 2017, amounted to approximately $167,000, $209,000, and $126,000, respectively.