Employee Benefit Plan
 9 Months Ended
Sep. 30, 2016
Banking and Thrift [Abstract]  
Employee Benefit Plan

10. Employee Benefit Plan

 

The following table sets forth the amount of the net periodic benefit cost recognized by the Company for the Company’s pension plan, post-retirement plan (Life and Health), and supplemental employee retirement plans (“SERP”) including the following components: service cost, interest cost, expected return on plan assets for the period, amortization of the unrecognized transitional obligation or transition asset, and the amounts of recognized gains and losses, prior service cost recognized, and gain or loss recognized due to settlement or curtailment.

 

Components of Net Periodic Benefit (Income) Cost

 

    Pension Benefits     Life and Health     SERP Benefits  
    Three Months Ended     Three Months Ended     Three Months Ended  
(in thousands)   09/30/2016     09/30/2015     09/30/2016     09/30/2015     09/30/2016     09/30/2015  
Service cost   $ 0     $ 22     $ 64     $ 59     $ 43     $ 50  
Interest cost     618       145       71       81       208       232  
Expected return on plan assets     (1,211 )     (240 )     0       0       0       0  
Amortization of net retirement plan actuarial loss     244       41       1       5       90       156  
Amortization of net retirement plan prior service (credit) cost     (4 )     (3 )     4       4       19       18  
Net periodic benefit (income) cost   $ (353 )   $ (35 )   $ 140     $ 149     $ 360     $ 456  

  

Components of Net Period Benefit (Income) Cost

 

    Pension Benefits     Life and Health     SERP Benefits  
    Nine Months Ended     Nine Months Ended     Nine Months Ended  
(in thousands)   09/30/2016     09/30/2015     09/30/2016     09/30/2015     09/30/2016     09/30/2015  
Service cost   $ 0     $ 1,394     $ 193     $ 177     $ 128     $ 150  
Interest cost     1,855       1,610       212       242       624       696  
Expected return on plan assets     (3,633 )     (2,748 )     0       0       0       0  
Amortization of net retirement plan actuarial loss     731       1,180       4       14       269       469  
Amortization of net retirement plan prior service cost (credit)     (11 )     (417 )     12       12       56       54  
Recognized actuarial gain due to curtailments     0       (6,003 )     0       0       0       0  
Net periodic benefit (income) cost   $ (1,058 )   $ (4,984 )   $ 421     $ 445     $ 1,077     $ 1,369  

 

The net periodic benefit cost for the Company’s benefit plans are recorded as a component of salaries and benefits in the consolidated statements of income.

 

The Company realized approximately $637,000 and $1.2 million, net of tax, as amortization of amounts previously recognized in accumulated other comprehensive income, for the nine months ended September 30, 2016 and 2015, respectively.

 

The Company is not required to contribute to the pension plan in 2016, but it may make voluntary contributions. The Company contributed $1.3 million to the pension plan in the nine months ended September 30, 2016. For the nine months ended September 30, 2015, the Company did not contribute to the pension plan.

 

Effective July 31, 2015, the Retirement Plan (Accruing Pension Plan) was frozen (participants no longer accrue benefits after July 31, 2015). The Plan freeze was reflected on June 30, 2015, and in accordance with ASC 715 Compensation – Retirement Benefits, a Curtailment was triggered. Under a Curtailment due to a plan freeze, any unrecognized Prior Service Cost bases must be fully recognized in benefit cost at the time of the Curtailment. The sum of unrecognized Prior Service Cost bases as of June 30, 2015 was $6.0 million.