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Retirement Plans
 12 Months Ended
Dec. 31, 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 funded status and amounts recognized on the 2023 and 2022 consolidated balance sheets, as measured on December 31, 2023 and 2022, respectively, for the RAP and Postretirement Plan were as follows:
 RAPPostretirement
Plan		RAPPostretirement
Plan
($ in thousands)2023202320222022
Change in fair value of plan assets
Fair value of plan assets at beginning of year$407,405 $— $497,796 $— 
Actual return on plan assets60,565 — (74,140)— 
Employer contributions— 171 — 193 
Gross benefits paid(14,513)(171)(16,252)(193)
Fair value of plan assets at end of year(a)
$453,457 $— $407,405 $— 
Change in benefit obligation
Net benefit obligation at beginning of year$208,315 $1,530 $261,321 $1,975 
Service cost3,189 — 3,670 — 
Interest cost
10,887 78 7,152 53 
Actuarial (gain) loss3,475 (12)(47,577)(305)
Gross benefits paid(14,513)(171)(16,252)(193)
Net benefit obligation at end of year(a)
$211,353 $1,425 $208,315 $1,530 
Funded (unfunded) status$242,104 $(1,425)$199,089 $(1,530)
Noncurrent assets$242,104 $— $199,089 $— 
Current liabilities— (158)— (164)
Noncurrent liabilities— (1,267)— (1,366)
Asset (liability) recognized on the consolidated balance sheets$242,104 $(1,425)$199,089 $(1,530)
(a) The fair value of the plan assets represented 215% and 196% of the net benefit obligation of the pension plan at December 31, 2023 and 2022, respectively.
Amounts recognized in accumulated other comprehensive (income) loss, net of tax, as of December 31, 2023 and 2022 were as follows:
RAPPostretirement
Plan		RAPPostretirement
Plan
($ in thousands)2023202320222022
Prior service cost$(884)$(308)$(1,064)$(362)
Net actuarial loss (gain)27,089 (301)44,919 (316)
Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss$26,204 $(609)$43,855 $(678)
Other changes in plan assets and benefit obligations recognized in OCI, net of tax, in 2023 and 2022 were as follows:
RAPPostretirement
Plan		RAPPostretirement
Plan
($ in thousands)2023202320222022
Net actuarial gain (loss)$24,228 $12 $(53,466)$305 
Amortization of prior service cost(250)(75)(250)(75)
Amortization of actuarial loss (gain)— (29)658 — 
Income tax benefit (expense)(6,327)23 13,553 (58)
Total recognized in OCI$17,650 $(68)$(39,504)$171 
The components of net periodic pension cost for the RAP for 2023, 2022, and 2021 were as follows:
($ in thousands)202320222021
Service cost$3,189 $3,670 $7,779 
Interest cost10,887 7,152 6,570 
Expected return on plan assets(32,862)(26,903)(25,675)
Amortization of prior service cost(250)(250)(73)
Amortization of actuarial loss — 658 4,594 
Recognized settlement loss — — 434 
Total net periodic pension (income)$(19,037)$(15,673)$(6,370)
The components of net periodic benefit cost for the Postretirement Plan for 2023, 2022, and 2021 were as follows:
($ in thousands)202320222021
Interest cost$78 $53 $52 
Amortization of prior service cost(75)(75)(75)
Amortization of actuarial (gain)(29)— — 
Total net periodic benefit (income)$(26)$(22)$(24)
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.
RAPPostretirement
 Plan		RAPPostretirement
Plan
2023202320222022
Weighted average assumptions used to determine benefit obligations
Discount rate5.40 %5.40 %5.40 %5.40 %
Rate of increase in compensation levels2.50 %N/A2.50 %N/A
Interest crediting rate3.77 %N/A3.46 %N/A
Weighted average assumptions used to determine net periodic benefit costs
Discount rate
5.40 %5.40 %2.80 %2.80 %
Rate of increase in compensation levels2.50 %N/A2.50 %N/A
Expected long-term rate of return on plan assets
7.30 %N/A6.00 %N/A
The expected long-term (more than 20 years) rate of return was estimated using market benchmarks for equities and bonds applied to the RAP’s anticipated asset allocations. The expected return on equities was computed utilizing a valuation framework, which projected future returns based on current equity valuations rather than historical returns. The actual rates of return for the RAP assets were 15.80% and (15.03)% for 2023 and 2022, respectively.
The RAP’s investments are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risks associated with certain investments and the level of uncertainty related to changes in the value of the investments, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported. The investment objective for the RAP is to ensure there are sufficient assets to pay pension obligations when they come due while mitigating risks and providing prudent governance. The RAP has a diversified portfolio designed to provide liquidity, current income, and growth of income and principal, with anticipated asset allocation ranges of: equity securities 50 to 70%, fixed-income securities 30 to 50%, alternative securities 0 to 15%, and other cash equivalents 0 to 10%. Based on changes in economic and market conditions, the Corporation could be outside of the allocation ranges for brief periods of time. The asset allocation for the RAP as of the December 31, 2023 and 2022 measurement dates, respectively, by asset category were as follows:
Asset Category20232022
Equity securities54 %53 %
Fixed-income securities34 %35 %
Group annuity contracts10 %10 %
Other2 %2 %
Total100 %100 %
The RAP assets include cash equivalents, such as money market accounts, mutual funds, common / collective trust funds (which include investments in equity and bond securities), and a group annuity contract. Money market accounts are stated at cost plus accrued interest, mutual funds are valued at quoted market prices, investments in common / collective trust funds are
valued at the amount at which units in the funds can be withdrawn, and the group annuity contract is valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations and considering the credit worthiness of the issuer.
Based on these inputs, the following table summarizes the fair value of the RAP’s investments as of December 31, 2023 and 2022:
  Fair Value Measurements Using
($ in thousands)December 31, 2023Level 1Level 2Level 3
RAP investments
Money market account$10,040 $10,040 $— $— 
Common /collective trust funds164,891 164,891 — — 
Mutual funds234,840 234,840 — — 
Group annuity contracts43,687 — — 43,687 
Total RAP investments$453,457 $409,771 $— $43,687 
 Fair Value Measurements Using
($ in thousands)December 31, 2022Level 1Level 2Level 3
RAP investments
Money market account$6,628 $6,628 $— $— 
Common /collective trust funds155,654 155,654 — — 
Mutual funds204,184 204,184 — — 
Group annuity contracts40,939 — — 40,939 
Total RAP investments$407,405 $366,466 $— $40,939 
The following presents a summary of the changes in the fair value of the RAP's Level 3 asset during the periods indicated.
Fair Value Reconciliation of Level 3 RAP Investments20232022
Fair value of group annuity contract at beginning of period$40,939 $49,213 
Return on plan assets5,313 (5,671)
Benefits paid(2,565)(2,604)
Fair value of group annuity contract at end of period$43,687 $40,939 
The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions to the RAP during 2023 and 2022.
The projected benefit payments were calculated using the same assumptions as those used to calculate the benefit obligations listed above. The projected benefit payments for the RAP and Postretirement Plan at December 31, 2023, reflecting expected future services, were as follows:
($ in thousands)RAPPostretirement Plan
Estimated future benefit payments
2024$20,198 $163 
202522,320 158 
202621,163 152 
202719,804 146 
202819,842 140 
2029-203383,328 595 
The health care trend rate is an assumption as to how much the Postretirement Plan’s medical costs will change each year in the future. There are no remaining participants under age 65 in the Postretirement Plan. The actual change in 2023 health care premium rates for post-65 coverage was an increase of 4.00%. The health care trend rate assumption for post-65 coverage assumes a 5.00% rate of increase for 2024 and future years.
The Corporation also has a 401(k) and Employee Stock Ownership Plan (the “401(k) plan”). The Corporation’s contribution is determined by the Compensation and Benefits Committee of the Board of Directors. Total expenses related to contributions to the 401(k) plan were $16 million, $15 million, and $13 million for 2023, 2022, and 2021, respectively.