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Retirement Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Retirement Plans RETIREMENT PLANS
The Company sponsors a defined benefit retirement plan, or Benefit Plan, that covers eligible employees hired prior to February 1, 2007. The benefits are based on years of service and the employee’s five-year final average salary. The accounting for the defined benefit plan requires the use of assumptions and estimates in order to calculate periodic benefit cost and the value of the plan's assets and benefit obligation. These assumptions include discount rates, investment returns, and projected salary increases, amongst others. The discount rates used in valuing the plan's benefits obligations were determined with reference to high quality corporate and government bonds that are appropriately matched to the duration of the plan's obligation.
Contributions are intended to provide for benefits attributable to service both to date and expected to be provided in the future. The Company funds the plan in accordance with the Employee Retirement Income Security Act of 1974, or ERISA. The Company in April 2017 froze the Benefit Plan as it relates to future benefit accruals for participants.
The following table sets forth changes in the plan's net benefit obligation and accumulated benefit information as of December 31:
($ in thousands)20212020
Change in benefit obligation - Pension
Benefit obligation at beginning of year$12,037 $10,710 
Interest cost291 338 
Actuarial (gain)/loss assumption changes(722)1,248 
Benefits paid(296)(259)
Benefit obligation and accumulated benefit obligation at end of year$11,310 $12,037 
Change in Plan Assets
Fair value of plan assets at beginning of year$10,435 $8,920 
Actual return on plan assets821 1,609 
Employer contribution165 165 
Benefits/expenses paid(296)(259)
Fair value of plan assets at end of year$11,125 $10,435 
Funded status - liability$(185)$(1,602)
 
Amounts recorded in equity
Net actuarial loss$2,376 $3,242 
Total amount recorded$2,376 $3,242 
Amount recorded, net taxes$1,711 $2,335 
Other changes in plan assets and benefit obligations recognized in other comprehensive income include the following as of December 31:
($ in thousands)20212020
Net (gain) loss$(792)$282 
Recognition of net actuarial loss(74)(67)
Total changes$(866)$215 
Changes, net of taxes$(624)$155 
The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year: 
Expected return on plan assets$552 
Interest cost(312)
Amortization of net gain/(loss)(46)
Net periodic pension benefit/(cost)$194 
At December 31, 2021 and 2020, the Company had a long-term pension liability. For 2022, the Company is estimating that contributions to the pension plan will be approximately $165,000.
Based on actuarial estimates, it is expected that annual benefit payments from the pension trust will be as follows:
20222023202420252026Thereafter
$317 $338 $374 $470 $503 $2,645 
Plan assets consist of equity, debt and short-term money market investment funds. The Benefit Plan’s current investment policy changed during the third quarter of 2018. The new policy is an investment strategy in which the primary focus is to minimize the volatility of the funding ratio. This objective will result in a prescribed asset mix between "return seeking" assets (e.g. stocks) and a bond portfolio (e.g., long duration bonds) according to a pre-determined customized investment strategy based on the Plan's Funded Status as the primary input. This path will be used as a reference point as to the mix of assets, which by design will de-emphasize the return seeking portion as funded status improves. At December 31, 2021, the investment mix was approximately 35% equity, 64% debt, and 1% money market funds. At December 31, 2020, the investment mix was approximately 65% equity, 34% debt and 1% money market funds. Equity investments consist of a combination of individual equity securities plus value funds, growth funds, large cap funds and international stock funds. Debt investments consist of U.S. Treasury securities and investment grade corporate debt. The weighted-average discount rate used in determining the periodic pension cost is 2.80% in 2021 and 2.45% in 2020. The expected long-term rate of return on plan assets is 7.3% in 2021 and 7.3% in 2020. The long-term rate of return on plan assets is based on the historical returns within the plan and expectations for future returns. See the following table for fair value hierarchy by investment type at December 31:
($ in thousands)Fair Value Hierarchy20212020
Pension Plan Assets:
Cash and Cash EquivalentsLevel 1$102 $70 
Collective FundsLevel 211,023 10,365 
Fair value of plan assets$11,125 $10,435 
Total pension and retirement expense was as follows for each of the years ended December 31:
($ in thousands)202120202019
Cost components:
Service cost$— $— $— 
Interest cost(291)(338)(389)
Expected return on plan assets752 643 522 
Net amortization and deferral(74)(68)(75)
Total net periodic pension earnings/(cost)$387 $237 $58 
The Company has a Supplemental Executive Retirement Plan, or SERP, to restore to executives designated by the Compensation Committee of the Board of Directors the full benefits under the pension plan that would otherwise be restricted by certain limitations now imposed under the Internal Revenue Code. The SERP is currently unfunded. The Company in April 2017 froze the SERP plan as it relates to the accrual of additional benefits.
The following SERP benefit information is as of December 31:
($ in thousands)20212020
Change in benefit obligation - SERP
Benefit obligation at beginning of year$8,419 $8,011 
Interest cost163 229 
Actuarial gain/assumption changes(206)708 
Benefits paid(529)(529)
Benefit obligation and accumulated benefit obligation at end of year$7,847 $8,419 
Funded status - liability$(7,847)$(8,419)
($ in thousands)20212020
Amounts recorded in stockholders’ equity
Net actuarial loss$2,693 $3,024 
Total amount recorded$2,693 $3,024 
Amount recorded, net taxes$1,939 $2,178 
Other changes in benefit obligations recognized in other comprehensive income for 2021 and 2020 included the following components: 
($ in thousands)20212020
Net (gain) loss$(206)$708 
Recognition of net actuarial gain or (loss)(125)(86)
Total changes$(331)$622 
Changes, net of taxes$(239)$448 
The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year ($ in thousands):
Interest cost$(182)
Amortization of net (gain)/loss(114)
Net periodic pension earnings/(cost)$(296)
Based on actuarial estimates, it is expected that annual SERP benefit payments will be as follows ($ in thousands):
20222023202420252026Thereafter
$526 $510 $487 $562 $553 $2,592 
The weighted-average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of projected benefits obligation was 2.40% and 0.0% for 2021, 2.00% and 0.0% for 2020, and 2.95% and 0.00% for 2019. Total pension and retirement expense was as follows for each of the years ended December 31:
($ in thousands)202120202019
Cost components:
Interest cost$(163)$(229)$(303)
Net amortization and other(125)(86)(62)
Total net periodic pension earnings/(cost)$(288)$(315)$(365)