Pension Plans

6 Months Ended

Jun. 30, 2019

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 (income) totaling $244,000 and $(93,000) for the three months ended June 30, 2019 and 2018, respectively, and $488,000 and $272,000 for the six months ended June 30, 2019 and 2018, respectively. The following table contains the components of the pension cost.



	For the Three Months Ended June 30,
($ in thousands)	2019 Pension Plan			2018 Pension Plan		2019 SERP	2018 SERP		2019 Total Both Plans		Both Plans	2018 Total Both Plans
Service cost	$	—		—		—	33		—			33
Interest cost	372			326		41	53		413			379
Expected return on plan assets	(397		)	(556	)	—	—		(397	)		(556	)
Amortization of net (gain)/loss	223			59		5	(8	)	228			51
Net periodic pension cost (income)	$	198		(171	)	46	78		244			(93	)



	For the Six Months Ended June 30,
($ in thousands)	2019 Pension Plan			2018 Pension Plan		2019 SERP	2018 SERP		2019 Total Both Plans		2018 Total Both Plans
Service cost	$	—		—		—	62		—		62
Interest cost	744			656		82	110		826		766
Expected return on plan assets	(794		)	(659	)	—	—		(794	)	(659	)
Amortization of net (gain)/loss	446			119		10	(16	)	456		103
Net periodic pension cost	$	396		116		92	156		488		272

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 six months of 2019 and does not expect to contribute to the Pension Plan in the remainder of 2019.

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