Net Periodic Benefit Costs

9 Months Ended

Sep. 30, 2023

Net Periodic Benefit Costs [Abstract]

Net Periodic Benefit Costs

6. NET PERIODIC BENEFIT COSTS

On January 31, 2008, the Bank froze its defined benefit pension plan. The plan covered substantially all Bank employees. The plan provides benefits that are based on the employees’ compensation and years of service. Under the freeze, eligible employees will receive, at retirement, the benefits already earned through January 31, 2008, but have not accrued any additional benefits since then. As a result, service cost is no longer incurred.

The Bank uses an actuarial method of amortizing prior service cost and unrecognized net gains or losses which result from actual expense and assumptions being different than those that are projected. The amortization method the Bank used recognized the prior service cost and net gains or losses over the average remaining service period of active employees.

The Bank also maintains a nonqualified supplemental executive retirement plan covering certain members of the Company’s senior management. The Bank uses an actuarial method of amortizing unrecognized net gains or losses which result from actual expense and assumptions being different than those that are projected. The amortization method the Bank uses recognizes the net gains or losses over the average remaining service period of active employees.

The following table presents the net periodic cost for the Bank’s defined benefit pension plan and supplemental executive retirement plan for the three and nine month periods ended September 30, 2023 and 2022:

		Three months ended September 30,
		(in thousands)
					Supplemental Executive
	Pension Benefits				Retirement Plan
	2023		2022		2023		2022
Service cost	$	-	$	-	$	36	$	33
Interest cost		62		44		62		31
Expected return on plan assets		(67)		(88)		-		-
Amortization of prior service cost		-		-		-		8
Amortization of the net loss		27		24		-		44
Net periodic cost (benefit)	$	22	$	(20)	$	98	$	116

		Nine months ended September 30,
		(in thousands)
					Supplemental Executive
	Pension Benefits				Retirement Plan
	2023		2022		2023		2022
Service cost	$	-	$	-	$	108	$	99
Interest cost		187		133		187		93
Expected return on plan assets		(201)		(264)		-		-
Amortization of prior service cost		-		-		-		24
Amortization of the net loss		81		71		-		132
Net periodic cost (benefit)	$	67	$	(60)	$	295	$	348

The components of net periodic cost other than the service cost component are included in the line item “other expense” in the income statement.