Benefit Plans

12 Months Ended

Dec. 31, 2025

Benefit Plans

Benefit Plans

Note 13: Benefit Plans

Pension and Other Postretirement Benefit Plans

The Company has a noncontributory defined benefit pension plan covering all employees who meet the eligibility requirements. The Company’s funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $518,000 to the plan in 2026.

The Company has certain agreements which provide for a fixed number of payments once the individual reaches normal retirement age. At December 31, 2025, the present value of these future payments was approximately $354,000.

The Company uses a December 31st measurement date for the plan. Information about the plan’s funded status and pension cost follows:

	Pension Benefits
	2025		2024
	(In thousands)
Change in benefit obligation
Beginning of year	$	(6,205)	$	(5,479)
Service cost		(347)		(322)
Interest cost		(391)		(323)
Actuarial loss		(208)		(305)
Benefits paid		221		224
End of year		(6,930)		(6,205)
Change in fair value of plan assets
Beginning of year		9,734		8,381
Actual return on plan assets		1,479		903
Employer contribution		630		672
Benefits paid		(221)		(222)
End of year		11,622		9,734
Funded status at end of year	$	4,692	$	3,529

Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of:

	Pension Benefits
	2025		2024
	(In thousands)
Unamortized net loss	$	235	$	793
Unamortized prior service		(50)		(139)
	$	185	$	654

The estimated net loss and prior service credit for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss as a credit into net periodic benefit cost over the next fiscal year is approximately $50,000. The accumulated benefit obligation for the defined benefit pension plan was $5.9 million and $5.3 million at December 31, 2025 and 2024, respectively.

Information for the pension plan with respect to accumulated benefit obligation and plan assets is as follows:

	December 31,
	2025		2024
	(In thousands)
Projected benefit obligation	$	6,930	$	6,205
Accumulated benefit obligation	$	5,929	$	5,332
Fair value of plan assets	$	11,622	$	9,734

	December 31,
	2025		2024
	(In thousands)
Components of net periodic benefit cost
Service cost	$	347	$	322
Interest cost		391		323
Expected return on plan assets		(713)		(623)
Amortization of prior service credit		(88)		(88)
Amortization of net loss		—		—
Net periodic benefit cost (benefit)	$	(63)	$	(66)

Significant assumptions include:

	Pension Benefits
	2025		2024
Weighted-average assumptions used to determine benefit obligation:
Discount rate	6.29	%	6.49	%
Rate of compensation increase	3.50	%	3.50	%
Weighted-average assumptions used to determine benefit cost:
Discount rate	6.49	%	6.06	%
Expected return on plan assets	7.00	%	7.00	%
Rate of compensation increase	3.50	%	3.50	%

The Company has estimated the long-term rate of return on plan assets based primarily on historical returns on plan assets, adjusted for changes in target portfolio allocations and recent changes in long-term interest rates based on publicly available information.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2025:

	Pension
	Benefits
	(In thousands)
2026	$	361
2027		426
2028		598
2029		1,307
2030		307
2031-2035		5,006
Total	$	8,005

Plan assets are held by an outside trustee which invests the plan assets in accordance with the provisions of the plan agreement. All equity and fixed income investments are held in various mutual funds with quoted market prices. Mutual fund equity securities primarily include investment funds that are comprised of large-cap, mid-cap and international companies. Fixed income mutual funds primarily include investments in corporate bonds, mortgage-backed securities and U.S. Treasuries. Other types of investments include a prime money market fund.

The asset allocation strategy of the plan is designed to allow flexibility in the determination of the appropriate investment allocations between equity and fixed income investments. This strategy is designed to help achieve the actuarial long term rate on plan assets of 7.0%. The target asset allocation percentages for both 2025 and 2024 are as follows:

Large-Cap stocks	Not to exceed 68%
Small-Cap stocks	Not to exceed 23%
Mid-Cap stocks	Not to exceed 23%
International equity securities	Not to exceed 30%
Fixed income investments	Not to exceed 35%
Alternative investments	Not to exceed 19%

At December 31, 2025 and 2024, the fair value of plan assets as a percentage of the total was invested in the following:

	December 31,
	2025		2024
Equity securities	62.7	%	69.5	%
Debt securities	28.5		28.6
Cash and cash equivalents	8.8		1.9
	100.0	%	100.0	%

Pension Plan Assets

Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy.

Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets include investments in mutual funds that involve equity, bond and money market investments. All of the Plan’s assets are classified as Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. At December 31, 2025 and 2024, the Plan did not contain Level 2 or Level 3 investments.

The fair values of Company’s pension plan assets at December 31st, by asset category are as follows:

December 31, 2025
			Fair Value Measurements Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	Total Fair		Identical Assets		Inputs		Inputs
Asset Category	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Mutual money market	$	586	$	586	$	—	$	—
Mutual funds – equities
ETF mutual funds		431		431		—		—
Large and small Cap		4,439		4,439		—		—
International and emerging markets		2,538		2,538		—		—
Mutual funds – fixed income
Fixed income		2,796		2,796		—		—
ETF fixed income		832		832		—		—
Total	$	11,622	$	11,622	$	—	$	—

December 31, 2024
			Fair Value Measurements Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	Total Fair		Identical Assets		Inputs		Inputs
Asset Category	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Mutual money market	$	188	$	188	$	—	$	—
Mutual funds – equities
ETF mutual funds		6,203		6,203		—		—
Large and small Cap		187		187		—		—
International		373		373
Mutual funds – fixed income
Fixed income		1,840		1,840		—		—
ETF fixed income		943		943		—		—
Total	$	9,734	$	9,734	$	—	$	—

Employee Stock Ownership and 401(k) Plans

The Company has an Employee Stock Ownership Plan (“ESOP”) with an integrated 401(k) plan covering substantially all employees of the Company. The Company’s 401(k) matching percentage was 50% of the employees’ first 6% of contributions for 2025 and 2024.

The Company’s 401(k) expense for the years ended December 31, 2025 and 2024 was approximately $178,000 and $156,000, respectively.

Share information for the ESOP is as follows at December 31, 2025 and 2024:

	2025		2024
Allocated shares at beginning of the year		394,283		377,870
Net shares or dividend reinvestment or distributed due to retirement/diversification		1,029		16,413
Total ESOP shares		395,312		394,283
Fair value of unearned shares at December 31st	$	—	$	—

At December 31, 2025, the fair value of the 395,312 the shares held by the ESOP was approximately $5,673,000. There were no unearned ESOP shares as of December 31, 2025 and 2024.

Split Dollar Life Insurance Arrangements

The Company has split-dollar life insurance arrangements with its executive officers and certain directors that provide certain death benefits to the executive’s beneficiaries upon his or her death. The agreements provide a pre- and post-retirement death benefit payable to the beneficiaries of the executive in the event of the executive’s death. The Company has purchased life insurance policies on the lives of all participants covered by these agreements in amounts sufficient to provide the sums necessary to pay the beneficiaries, and the Company pays all premiums due on the policies. In the case of an early separation from the Company, the nonvested executive portion of the death benefit is retained by the Company. The accumulated post retirement benefit obligation was $2.2 million and $2.0 million at December 31, 2025 and 2024, respectively.