Pension Plans

9 Months Ended

Sep. 30, 2020

The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012.

The Company recorded periodic pension cost totaling $186,000 and $244,000 for the three months ended September 30, 2020 and 2019, respectively, and $617,000 and $732,000 for the nine months ended September 30, 2020 and 2019, respectively. The following table contains the components of the pension cost.


	For the Three Months Ended September 30,
($ in thousands)	2020 Pension Plan		2019 Pension Plan	2020 SERP	2019 SERP	2020 Total Both Plans	2019 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	303		367	55	82	358	449
Expected return on plan assets	(325)		(360)	—	—	(325)	(360)
Amortization of net (gain)/loss	194		282	(41)	(127)	153	155
Net periodic pension cost	$	172	289	14	(45)	186	244


	Nine Months Ended September 30, 2020
($ in thousands)	2020 Pension Plan		2019 Pension Plan	2020 SERP	2019 SERP	2020 Total Both Plans	2019 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	917		1,111	165	164	1,082	1,275
Expected return on plan assets	(976)		(1,154)	—	—	(976)	(1,154)
Amortization of net (gain)/loss	634		733	(123)	(122)	511	611
Net periodic pension cost	$	575	690	42	42	617	732

The service cost component of net periodic pension cost is included in salaries and benefits expense and all other components of net periodic pension cost are included in other noninterest expense.

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company did not contribute to the Pension Plan in the first nine months of 2020 and does not expect to contribute to the Pension Plan in the remainder of 2020.

The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.