Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Change in Benefit Obligation, Change in Plan Assets and Funded Status of the Pension Plan

The components of net pension benefit cost under the plan for the year ended December 31, 2020 and 2019 is summarized as follows:

Change in Benefit Obligation	2020			2019
Benefit obligation at beginning of year	$	11,956		$	8,598
Service cost	871			567
Interest cost	412			365
Actuarial income (loss)		2,926			2,542
Benefits paid		(77	)		(116	)
Increase in obligation due to Virginia Bank merger		6,448			—
Increase in obligation due to plan amendment (1)		156			—
Benefit obligation at end of year	$	22,692		$	11,956
Change in Plan Assets
Fair value of plan assets at beginning of year		8,549			7,303
Increase in fair value of assets due to Virginia Bank merger		2,194			—
Actual return on plan assets		1,322			1,362
Employer contribution		—			—
Benefits paid		(77	)		(116	)
Projected fair value of plan assets at end of year		11,988			8,549
Funded Status at the End of the Year		(10,704	)		(3,407	)
Amounts Recognized in the Balance Sheet
Other liabilities, accrued pension		(10,704	)		(3,407	)
Amounts Recognized in Accumulated Other Comprehensive
Income Net of Tax Effect
Unrecognized actuarial loss		(6,166	)		(4,104	)
Prior service cost		(155	)		—
Income tax effect	1327			862
Benefit obligation included in accumulated other comprehensive income	$	(4,994	)	$	(3,242	)
Funded Status
Benefit obligation		(22,692	)		(11,956	)
Fair value of assets	$	11,988		$	8,549
Unrecognized net actuarial loss		6,166			4,104
Unrecognized prior service cost		155			—
Prepaid benefit cost included in the balance sheet	$	(4,383	)	$	697

	Pension Benefits
Weighted Average Assumptions as of December 31, 2020 and 2019 :	2020			2019
Discount rate used for net periodic pension cost		3.25	%		4.25	%
Discount rate used for disclosure		2.50	%		3.25	%
Expected long-term return on plan assets used for net periodic pension cost		7.25	%		7.25	%
Rate of compensation increase for disclosure		3.00	%		3.00	%

Components of Net Pension Benefit Cost

The components of net pension benefit cost under the plan for the years ended December 31, 2020 and 2019 is summarized as follows:

	Pension Benefits
	2020			2019
Service cost	$	871		$	567
Interest cost	412			365
Expected return on plan assets		(631	)		(528	)
Net loss due to settlement		—			—
Recognized net actuarial loss	173			93
Net pension benefit cost	$	825		$	497
Gross (gain) loss recognized in other comprehensive income		2,218			1,615
Total Recognized in Net Pension Benefit Cost and Other Comprehensive Income	$	3,043		$	2,112

Summary of Projected Benefit Payments

The projected benefit payments under the plan are summarized as follows for the years ending December 31:

2021	$	2,388
2022		399
2023		552
2024		595
2025		1,374
2026-2030		4,701

Fair Value of the Assets, by Asset Category

The following table presents the fair value of the assets, by asset category, as of December 31, 2020 and 2019.

	2020		2019
Mutual funds-fixed income	$	4,675	$	3,249
Mutual funds-equity		7,313		5,300
Total assets at fair value	$	11,988	$	8,549

Fair Value Hierarchy, the Assets Carried at Fair Value

The following table sets forth by level, within the fair value hierarchy, the assets carried at fair value as of December 31, 2020 and 2019.

	Assets at Fair Value as of December 31, 2020
	Level 1		Level 2		Level 3		Total
Mutual funds-fixed income	$	4,675		—		—		4,675
Mutual funds-equity		7,313		—		—		7,313
Total assets at fair value	$	11,988		—		—		11,988

	Assets at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
Mutual funds-fixed income	$	3,249		—		—		3,249
Mutual funds-equity		5,300		—		—		5,300
Total assets at fair value	$	8,549		—		—		8,549

PINNACLE BANKSHARES CORP 10-K