Post-Retirement Benefits

12 Months Ended

Dec. 31, 2023

Post-Retirement Benefits

Post-Retirement Benefits

Note 18—Post-Retirement Benefits

At December 31, 2023, the Company and its subsidiary have three post-retirement health and life insurance benefit plans, SouthState Bank Retiree Medical Plan (the “retiree medical plan”), First Federal Retiree Welfare Plan (the “retiree welfare plan”) and the Georgia Bank & Trust Retiree Medical Plan. We do not disclose in the tables below the Georgia Bank & Trust Retiree Medical Plan due to the plan being immaterial. The Benefit obligation for this plan was less than $1,000 in the years reported.

Retiree Medical Plan

Under the retiree medical plan, post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to those employees of the Company eligible for early retirement under the pension plan on or before December 31, 1993, and former employees who are currently receiving benefits. The plan was unfunded at December 31, 2023, and the liability for future benefits has been recorded in the Consolidated Balance Sheets.

The following sets forth the retiree medical plan’s funded status and amounts recognized in the Company’s accompanying Consolidated Balance Sheets:

	December 31,
(Dollars in thousands)	2023		2022		2021
Change in benefit obligation:
Benefit obligation at beginning of year	$	157	$	195	$	209
Interest cost		7		4		3
Actuarial (gain) loss		(14)		(14)		11
Benefits paid		(25)		(28)		(28)
Benefit obligation at end of year		125		157		195
Change in plan assets:
Fair value of plan assets at beginning of year		—		—		—
Employer contribution		25		28		28
Benefits paid		(25)		(28)		(28)
Fair value of plan assets at end of year		—		—		—
Funded status	$	(125)	$	(157)	$	(195)

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

	Year Ended December 31,
	2023		2022		2021
Weighted-average assumptions used to determine benefit obligation at December 31:
Discount rate	4.60	%	4.80	%	2.10	%
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate	4.80	%	2.10	%	1.60	%
Assumed health care cost trend rates at December 31:
Health care cost trend rate assumed for next year	5.00	%	5.00	%	5.00	%

Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income are as follows:

	Year Ended December 31,
(Dollars in thousands)	2023		2022		2021
Interest cost	$	7	$	4	$	3
Recognized net actuarial loss		—		1		—
Net periodic benefit cost		7		5		3
Net (gain) loss		(14)		(14)		11
Amortization of loss		—		(1)		—
Total amount recognized in other comprehensive income		(14)		(15)		11
Total recognized in net periodic benefit cost and other comprehensive income	$	(7)	$	(10)	$	14

No estimated net gain/loss for the retiree welfare plan will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year.

Estimated future benefit payments (including expected future service as appropriate):

(Dollars in thousands)
2024	$	22
2025		20
2026		18
2027		16
2028		14
2029-2033		45
	$	135

The Company expects to contribute approximately $22,000 to the retiree medical plan in 2024.

Retiree Welfare Plan

Under the retiree welfare plan, post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to retired First Financial Holdings, Inc. employees who are currently receiving benefits. The plan was unfunded at December 31, 2023, and the liability for future benefits has been recorded in the consolidated financial statements.

The following sets forth the retiree welfare plan’s funded status and amounts recognized in the Company’s accompanying Consolidated Balance Sheets:

	December 31,
(Dollars in thousands)	2023		2022		2021
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,508	$	1,754	$	2,070
Interest cost		112		35		31
Actuarial loss (gain)		(1,428)		1,124		(110)
Benefits paid		(179)		(416)		(246)
Less: Federal subsidy on benefits paid		4		11		9
Benefit obligation at end of year		1,017		2,508		1,754
Change in plan assets:
Fair value of plan assets at beginning of year		—		—		—
Employer contribution		175		405		236
Participants’ contributions		4		11		10
Benefits paid		(179)		(416)		(246)
Fair value of plan assets at end of year		—		—		—
Funded status	$	(1,017)	$	(2,508)	$	(1,754)

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

	Year Ended December 31,
	2023		2022		2021
Weighted-average assumptions used to determine benefit obligation at December 31:
Discount rate	4.60	%	4.80	%	2.10	%
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate	4.80	%	2.10	%	1.60	%
Assumed health care cost trend rates at December 31:
Health care cost trend rate assumed for next year	5.00	%	5.00	%	5.00	%

Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income are as follows:

	Year Ended December 31,
(Dollars in thousands)	2023		2022		2021
Interest cost	$	112	$	35	$	31
Recognized net actuarial loss		285		141		174
Net periodic benefit cost		397		176		205
Net (gain) loss		(1,428)		1,124		(110)
Amortization of loss		(285)		(141)		(174)
Total amount recognized in other comprehensive income		(1,713)		983		(284)
Total recognized in net periodic benefit cost and other comprehensive income	$	(1,316)	$	1,159	$	(79)

The estimated net loss for the retiree welfare plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $45,000. The actuarial gains and losses are amortized over the average life expectancy of all participants.

Estimated future benefit payments (including expected future service as appropriate):

(Dollars in thousands)
2024	$	149
2025		140
2026		129
2027		119
2028		108
2029-2033		386
	$	1,031

The Company expects to contribute approximately $149,000 to the retiree welfare plan in 2024.