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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2022
EMPLOYEE BENEFIT PLANS [Abstract]  
Obligation and Net Funded Status

The following table sets forth the obligation and funded status of the pension plan as of December 31 (in thousands):

 
2022
    
2021
Change in benefit obligation
            
Benefit obligation at beginning of year
  
$
13,123
    
$
14,020
  
Service cost
    
356
      
380
  
Interest cost
    
275
      
270
  
Actuarial (Gain) / Loss
    
(3,230
)
    
(438
)
Settlement gain
    
(37
)
    
(17
)
Benefits paid
    
(1,163
)
    
(1,092
)
Benefit obligation at end of year
    
9,324
      
13,123
  
Change in plan assets
                
Fair value of plan assets at beginning of year
    
13,916
      
13,247
  
Actual return (loss) on plan assets
    
(1,418
)
    
1,761
  
Employer contribution
    
-
      
-
  
Benefits paid
    
(1,163
)
    
(1,092
)
Fair value of plan assets at end of year
    
11,335
      
13,916
  
Funded status
  
$
2,011
    
$
793
  
Components of Net Periodic Pension Cost not yet recognized

Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands):

Amounts recognized in accumulated other comprehensive loss consists of:
  
2022
    
2021
  
Net loss
  
$
1,336
    
$
2,491
  
Prior service cost
    
-
      
-
Total
  
$
1,336
    
$
2,491
  
Components of Net Periodic Benefit Costs

The components of net periodic benefit costs for the years ended December 31 are as follows (in thousands):


   
2022
    
2021
    
2020
  
Service cost
  
$
356
    
$
380
    
$
330
  
Interest cost
    
275
      
270
      
332
  
Return on plan assets
    
(935
)
    
(895
)
    
(862
)
Settlement loss (gain)
    
144
      
235
      
302
  
Net amortization and deferral
    
96
      
336
      
233
  
Net periodic benefit (income) cost
  
$
(64
)
  
$
326
    
$
335
  
Weighted-average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost (Income)

The weighted-average assumptions used to determine benefit obligations at December 31, 2022 and 2021 is summarized in the following table. The change in the discount rate is the primary driver of the actuarial gain that occurred in 2022 of $3,230,000.


   
2022
    
2021
  
Discount rate
    
4.75
%
    
2.25
%
Rate of compensation increase
    
3.00
%
    
3.00
%


The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31, 2022, 2021 and 2020 is summarized in the following table.


   
2022
    
2021
    
2020
  
Discount rate FCCB Plan
    
2.25
%
    
2.00
%
    
2.75
%
Expected long-term return on plan assets
    
7.00
%
    
7.00
%
    
7.00
%
Rate of compensation increase
    
3.00
%
    
3.00
%
    
3.00
%
Fair Value of Plan Assets

The long-term rate of return on plan assets gives consideration to returns currently being earned on plan assets as well as future rates expected to be earned.  The investment objective is to maximize total return consistent with the interests of the participants and beneficiaries, and prudent investment management.  The allocation of the pension plan assets is determined on the basis of sound economic principles and is continually reviewed in light of changes in market conditions.  Asset allocation favors equity securities, with a target allocation of 50-70%.  The target allocation for debt securities is 30-50%.  At December 31, 2022, the pension plan had a sufficient cash and money market position in order to re-allocate the equity portfolio for diversification purposes and reduce risk in the total portfolio.  The following table sets forth by level, within the fair value hierarchy as defined in footnote 19, the Plan’s assets at fair value as of December 31, 2022 and 2021 (dollars in thousands):

2022
  
Level I
    
Level II
    
Level III
    
Total
    
Allocation
  
Cash and cash equivalents
  
$
431
    
$
-
    
$
-
    
$
431
      
3.8
%
Equity Securities
    
5,391
      
-
      
-
      
5,391
      
47.6
%
Mutual Funds and ETF’s
    
3,322
      
-
      
-
      
3,322
      
29.3
%
Corporate Bonds
    
-
      
2,143
      
-
      
2,143
      
18.9
%
U.S. Agency Securities
     -       48       -       48       0.4 %
Total
  
$
9,144
    
$
2,191
    
$
-
    
$
11,335
      
100.0
%

2021
  
Level I
    
Level II
    
Level III
    
Total
    
Allocation
  
Cash and cash equivalents
  
$
188
    
$
-
    
$
-
    
$
188
      
1.4
%
Equity Securities
    
6,291
      
-
      
-
      
6,291
      
45.2
%
Mutual Funds and ETF’s
    
5,246
      
-
      
-
      
5,246
      
37.7
%
Corporate Bonds
    
-
      
2,191
      
-
      
2,191
      
15.7
%
Total
  
$
11,725
    
$
2,191
    
$
-
    
$
13,916
      
100.0
%
Expected Future Benefit Payments

The Bank does not expect to make a contribution to its pension plan in 2023.  Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands):


2023
  
$
143
  
2024
    
712
  
2025
    
1,029
  
2026
    
1,860
  
2027
    
1,186
  
2028 - 2032
    
4,284
  
Vesting, Awarding and Forfeiting of Restricted Shares

The Company maintains a Restricted Stock Plan (the Plan) whereby employees and non-employee corporate directors are eligible to receive awards of restricted stock based upon performance related requirements.  Awards granted under the Plan are in the form of the Company’s common stock and maybe subject to certain vesting requirements including in the case of employees, continuous employment or service with the Company.  In April 2016, the Company’s stockholder authorized a total of 150,000 shares of the Company’s common stock to be made available under the Plan. As of December 31, 2022, 116,058 shares remain available to be issued under the Plan. The Plan assists the Company in attracting, retaining and motivating employees to make substantial contributions to the success of the Company and to increase the emphasis on the use of equity as a key component of compensation. The following table details the vesting, awarding and forfeiting of unearned restricted shares during 2022:


 
2022
  
   
Shares
    
Weighted
Average
Market Price
  
Outstanding, beginning of year
    
6,954
    
$
58.51
  
Granted
    
3,333
      
68.69
  
Forfeited
    
(362
)
    
62.35
  
Vested
    
(3,303
)
    
58.09
  
Outstanding, end of year
    
6,622
    
$
63.63