v3.26.1
Pension Plan
 12 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Pension Plan

Note 14 - Pension plan

The Association has a defined benefit pension plan covering pre-merger employees. Benefits are based on the employee's compensation during the last 10 years of employment. Contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. The plan assets are invested in pooled separate accounts through an account at Principal Financial as of March 31, 2026. The separate accounts are quoted at net asset value (NAV), which is calculated based on the value of the underlying pool of assets. The accounts include investments in fixed income, equity, and real estate funds which have observable net asset values. As of March 31, 2026 and 2025, management determined the fair market value of the pension assets to be a Level 2 valuation as established by GAAP (see Note 11 for definitions of Level 1, Level 2, and Level 3).

The following table presents by level, within the fair value hierarchy, the pension plan's investments at fair value as of March 31, 2026 and 2025:

 

 

 

Estimated Fair Value

 

At March 31, 2026

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Pooled separate accounts:

 

(Dollars in thousands)

 

Fixed income

 

$

5,221

 

 

$

—

 

 

$

5,221

 

 

$

—

 

Equity

 

 

1,455

 

 

 

—

 

 

 

1,455

 

 

 

—

 

Real estate

 

 

618

 

 

 

—

 

 

 

618

 

 

 

—

 

Total plan assets

 

$

7,294

 

 

$

—

 

 

$

7,294

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Pooled separate accounts:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income

 

$

4,642

 

 

$

—

 

 

$

4,642

 

 

$

—

 

Equity

 

 

1,231

 

 

 

—

 

 

 

1,231

 

 

 

—

 

Real estate

 

 

586

 

 

 

—

 

 

 

586

 

 

 

—

 

Total plan assets

 

$

6,459

 

 

$

—

 

 

$

6,459

 

 

$

—

 

 

GAAP requires the recognition of the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in the consolidated statements of financial condition and recognition of changes in that funded status in the year in which the changes occur through comprehensive income.

Using a measurement date of March 31, the following tables provide a reconciliation of the benefit obligations, plan assets, and funded status of the pension plan:

 

 

 

2026

 

 

2025

 

Change in benefit obligations:

 

(Dollars in thousands)

 

Benefit obligation - beginning of year

 

$

7,918

 

 

$

8,329

 

Service cost

 

 

320

 

 

 

335

 

Interest cost

 

 

402

 

 

 

422

 

Actuarial gain

 

 

(368

)

 

 

(709

)

Benefits paid

 

 

(224

)

 

 

(459

)

Benefit obligation - end of year

 

$

8,048

 

 

$

7,918

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets - beginning of year

 

$

6,459

 

 

$

6,074

 

Return on plan assets

 

 

459

 

 

 

244

 

Contributed by employer

 

 

600

 

 

 

600

 

Benefits paid

 

 

(224

)

 

 

(459

)

Fair value of plan assets - end of year

 

$

7,294

 

 

$

6,459

 

Funded status - March 31

 

$

(754

)

 

$

(1,459

)

The funded status of the plan is recognized as a separate line item in the consolidated statements of financial condition. The accumulated benefit obligation for the defined benefit pension plan was $7.1 million at March 31, 2026 and $6.5 million at March 31, 2025.

Amounts recognized in other comprehensive income, net of tax, for the years ended March 31, 2026 and 2025, related to the change in the minimum pension liability were $429,000 and 491,000, respectively.

Net periodic cost included the following components:

 

 

 

Year Ended March 31,

 

 

 

2026

 

 

2025

 

 

 

(Dollars in thousands)

 

Service cost

 

$

320

 

 

$

335

 

Interest cost

 

 

402

 

 

 

422

 

Expected return on plan assets

 

 

(284

)

 

 

(331

)

Net period benefit costs

 

$

438

 

 

$

426

 

The components of net periodic benefit cost other than the service cost component are included in other general and administrative expenses in the consolidated statement of income.

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at March 31, 2026 and 2025, are as follows:

 

 

 

Year Ended March 31,

 

 

 

2026

 

 

2025

 

Discount rate - benefit obligation

 

 

5.75

%

 

 

5.55

%

Discount rate - benefit cost

 

 

5.55

%

 

 

5.20

%

Expected return on plan assets

 

 

5.25

%

 

 

5.40

%

Rate of compensation increase

 

 

4.00

%

 

 

4.00

%

 

The Association expects to contribute $600,000 to its pension plan in the fiscal year 2027.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in following fiscal years:

 

12 Months Ending March 31,

 

Benefit Payments

 

 

 

(Dollars in thousands)

 

2027

 

$

150

 

2028

 

 

2,110

 

2029

 

 

1,680

 

2030

 

 

650

 

2031

 

 

200

 

2032-2036

 

 

2,840

 

Total benefit payments

 

$

7,630

 

The Association also provides supplemental retirement benefits to certain key executives under which the executives will receive a fixed monthly payment for 120 months following their retirement, subject to certain requirements. A liability of approximately $484,000 and $536,000 was recorded in accounts payable, accrued expenses and other liabilities on the consolidated statements of financial condition as of March 31, 2026 and 2025, respectively. This obligation is funded by certain insurance policies, recorded in other assets on the consolidated statements of financial condition, which have a cash surrender value of approximately $1.1 million and $1.0 million at March 31, 2026 and 2025, respectively.