Retirement Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans The Corporation has a noncontributory defined benefit RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of

acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes.

The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans.

The components of net periodic pension cost and net periodic benefit cost for the RAP and Postretirement Plan for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended Jun 30,				Six Months Ended Jun 30,
($ in thousands)	2023		2022		2023		2022
RAP
Service cost	$	796	$	923	$	1,592	$	1,847
Interest cost	2,686		1,772		5,372		3,545
Expected return on plan assets	(8,202)		(6,736)		(16,404)		(13,472)
Amortization of prior service cost	(63)		(63)		(125)		(125)
Amortization of actuarial loss	—		74		37		147
Total net periodic pension cost	$	(4,783)	$	(4,029)	$	(9,528)	$	(8,059)
Postretirement Plan
Interest cost	$	20	$	13	$	39	$	27
Amortization of prior service cost	(19)		(19)		(38)		(38)
Amortization of actuarial loss (gain)	(7)		—		(15)		—
Total net periodic benefit cost	$	(7)	$	(6)	$	(13)	$	(11)

The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income.

The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions during 2022 or the six months ended June 30, 2023.