ASSOCIATE BENEFIT PLANS

6 Months Ended

Jun. 30, 2020

Postemployment Benefits [Abstract]

ASSOCIATE BENEFIT PLANS

11. ASSOCIATE BENEFIT PLANS

Postretirement Medical Benefits

The Company shares certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for the Company. Effective March 31, 2014, the Company changed the eligibility of this plan to include only those Associates who have achieved ten years of service as of March 31, 2014. The Company began to use the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in its calculation.

The Company accounts for its obligations under the provisions of ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires the recognition of the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year. The Company recognizes its service cost in Salaries, benefits and other compensation and the other components of net periodic benefit cost in Other operating expenses in the unaudited Consolidated Statements of Income.

The following table presents the components of net periodic benefit cost related to postretirement medical benefits plan.

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	15	$	14	$	30	$	27
Interest cost	17		19		34		38
Prior service cost amortization	(19)		(19)		(38)		(38)
Net gain recognition	(9)		(16)		(18)		(31)
Net periodic cost (benefit)	$	4	$	(2)	$	8	$	(4)

Alliance Associate Pension Plan

During the fourth quarter of 2015, the Company completed the acquisition of Alliance. At the time of the acquisition, the Company assumed the Alliance pension plan offered to its current Associates.

The following table presents the components of net periodic benefit cost related to the Alliance Associate Pension Plan.

	Three months ended June 30,				Six months ended June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	7	$	10	$	17	$	20
Interest cost	42		69		105		138
Expected return on plan assets	(79)		(148)		(196)		(295)
Prior service cost amortization	—		—		—		—
Net gain recognition	—		—		—		—
Plan settlement loss	1,431		$	—	1,431		$	—
Net periodic cost (benefit)	$	1,401	$	(69)	$	1,357	$	(137)

During the fourth quarter of 2018, the Company notified the Alliance pension plan participants, the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) of its intention to terminate the plan, and received IRS and PBGC approval in the first quarter of 2020. The Company completed the termination and contributed $0.5 million to the plan to settle the obligation during the three months ended June 30, 2020.

Beneficial Associate Pension and other postretirement benefits plans

On March 1, 2019, the Company closed its acquisition of Beneficial. At the time of the acquisition, the Company assumed the pension plan covering certain eligible Beneficial Associates. The plan was frozen in 2008.

The following table presents the components of net periodic benefit cost related to the Beneficial pension benefits and other postretirement benefit plans.

	Three months ended June 30, 2020				Six months ended June 30, 2020
(Dollars in thousands)	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Service cost	$	—	$	29	$	—	$	58
Interest cost	740		138		1,455		275
Expected return on plan assets	(1,588)		—		(3,182)		—
Prior service cost amortization	—		—		—		—
Net loss (gain) recognition	1		(16)		2		(32)
Net periodic (benefit) cost	$	(847)	$	151	$	(1,725)	$	301

	Three months ended June 30, 2019				Six months ended June 30, 2019
(Dollars in thousands)	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Service cost	$	—	$	23	$	—	$	30
Interest cost	857		177		1,142		236
Expected return on plan assets	(1,442)		—		(1,923)		—
Prior service cost amortization	—		—		—		—
Net loss (gain) recognition	—		—		—		—
Net periodic (benefit) cost	$	(585)	$	200	$	(781)	$	266