Pension Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

The Company 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, no additional accruals of benefits under these plans for service subsequent to 2012 have been made.

The Company recorded periodic pension cost totaling $51,000 for both the three months ended March 31, 2023 and 2022. The following table contains the components of the pension cost:

	For the Three Months Ended March 31,
($ in thousands)	2023 Pension Plan		2023 SERP	2023 Total Both Plans	2022 Pension Plan	2022 SERP	2022 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	267		28	295	267	28	295
Expected return on plan assets	(288)		—	(288)	(288)	—	(288)
Amortization of net loss (gain)	180		(136)	44	180	(136)	44
Net periodic pension cost	$	159	(108)	51	159	(108)	51

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 three months of 2023 and does not expect to contribute to the Pension Plan in the remainder of 2023. Effective March 31, 2023, the Company determined that the Pension Plan will be terminated during 2023 and a termination cost estimate of $2.4 million is included in the accompanying consolidated income statement.

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