PENSION PLAN (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Compensation and Retirement Disclosure [Abstract] |
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| Defined Benefit Plan Activity |
Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2016 and 2015 is as follows:
| | | | | | | | | | (Dollars in thousands) | | 2016 | | 2015 | Change in benefit obligation | | | | | Benefit obligation at beginning of year | | $ | 8,662 |
| | $ | 8,173 |
| Service cost | | — |
| | — |
| Interest cost | | 367 |
| | 315 |
| Actuarial loss | | 4 |
| | 276 |
| Assumption changes | | 179 |
| | 97 |
| Curtailment impact | | — |
| | — |
| Benefits paid | | (191 | ) | | (199 | ) | Benefit obligation at end of year | | $ | 9,021 |
| | $ | 8,662 |
| | | | | | Change in plan assets: | | | | | Fair value of plan assets at beginning of year | | $ | 4,486 |
| | $ | 4,471 |
| Actual return on plan assets | | 96 |
| | (124 | ) | Employer contribution | | 182 |
| | 338 |
| Benefits paid | | (191 | ) | | (199 | ) | Fair value of plan assets at end of year | | $ | 4,573 |
| | $ | 4,486 |
| | | | | | Funded status | | $ | (4,448 | ) | | $ | (4,176 | ) | Unrecognized net actuarial loss | | 4,464 |
| | 4,283 |
| Unrecognized prior service cost | | — |
| | — |
| Prepaid pension cost recognized | | $ | 16 |
| | $ | 107 |
| | | | | | Accumulated benefit obligation | | $ | 9,021 |
| | $ | 8,662 |
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| Weighted Average Assumptions Used |
For the years December 31, 2016, 2015 and 2014, the weighted average assumptions used to determine net periodic pension cost are as follows: | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Discount rate | | 4.30 | % | | 3.90 | % | | 4.86 | % | Expected long-term rate of return on plan assets | | 6.75 | % | | 6.75 | % | | 7.50 | % | Rate of compensation increase | | n/a |
| | n/a |
| | n/a |
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At December 31, 2016, 2015 and 2014, the weighted average assumptions used to determine the benefit obligation are as follows: | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Discount rate | | 4.05 | % | | 4.30 | % | | 3.90 | % | Rate of compensation increase | | n/a |
| | n/a |
| | n/a |
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| Components of Net Periodic Pension Cost |
The components of net periodic pension cost are as follows:
| | | | | | | | | | | | | | (Dollars in thousands) | | 2016 | | 2015 | | 2014 | Service cost | | $ | — |
| | $ | — |
| | $ | 346 |
| Interest cost | | 367 |
| | 315 |
| | 306 |
| Expected return on plan assets | | (330 | ) | | (316 | ) | | (319 | ) | Amortization of prior service costs | | — |
| | — |
| | — |
| Amortization of net actuarial loss | | 236 |
| | 257 |
| | 136 |
| Net periodic pension cost | | $ | 273 |
| | $ | 256 |
| | $ | 469 |
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| Pension Plan Asset Allocations |
The Company’s pension plan asset allocations at December 31, 2016 and 2015, as well as target allocations for 2016 are as follows: | | | | | | | | | | 12/31/2016 | | 12/31/2015 | Plan Assets | | | | | Cash | | 16 | % | | 10 | % | Fixed income | | 28 | % | | 20 | % | Alternative investments | | 9 | % | | 19 | % | Domestic equities | | 28 | % | | 32 | % | Foreign equities | | 19 | % | | 19 | % | Total | | 100 | % | | 100 | % |
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| Plan Assets at Fair Value by Level |
The following table sets forth by level, within the fair value hierarchy, as defined in Note 18, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K, the Plan’s assets at fair value as of December 31, 2016.
| | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Level I | | Level II | | Level III | | Total | Assets: | | | | | | | | | Cash | | $ | 732 |
| | $ | — |
| | $ | — |
| | $ | 732 |
| Fixed income | | 1,280 |
| | — |
| | — |
| | 1,280 |
| Alternative investments | | — |
| | — |
| | 412 |
| | 412 |
| Domestic equities | | 1,280 |
| | — |
| | — |
| | 1,280 |
| Foreign equities | | 869 |
| | — |
| | — |
| | 869 |
| | | | | | | | | | Total assets at fair value | | $ | 4,161 |
| | $ | — |
| | $ | 412 |
| | $ | 4,573 |
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The following table sets forth by level, within the fair value hierarchy, as defined in Note 18, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K, the Plan’s assets at fair value as of December 31, 2015.
| | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Level I | | Level II | | Level III | | Total | Assets: | | | | | | | | | Cash | | $ | 449 |
| | $ | — |
| | $ | — |
| | $ | 449 |
| Fixed income | | 897 |
| | — |
| | — |
| | 897 |
| Alternative investments | | — |
| | — |
| | 852 |
| | 852 |
| Domestic equities | | 1,436 |
| | — |
| | — |
| | 1,436 |
| Foreign equities | | 852 |
| | — |
| | — |
| | 852 |
| | | | | | | | | | Total assets at fair value | | $ | 3,634 |
| | $ | — |
| | $ | 852 |
| | $ | 4,486 |
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| Estimate of Plan Contributions in Future Years |
Below we show the best estimate of the plan contribution for next fiscal year. We also show the benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five fiscal years thereafter.
| | | | | | (Dollars in thousands) | | Cash Flow | Contributions for the period of 01/01/17 through 12/31/17 | | $ | 319 |
| | | | Estimated future benefit payments reflecting expected future service | | |
| 2017 | | $ | 252 |
| 2018 | | $ | 260 |
| 2019 | | $ | 280 |
| 2020 | | $ | 298 |
| 2021 | | $ | 307 |
| 2022 through 2026 | | $ | 2,104 |
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