Supplemental Retirement Plan and Other Postretirement Benefit Obligations

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Supplemental Retirement Plan and Other Postretirement Benefit Obligations

Supplemental Retirement Plan and Other Postretirement Benefit Obligations

Supplemental Retirement Plan

The Company has salary continuation agreements with two of its active executive officers, and one former executive officer who currently works on a part time basis. These agreements provide for predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each individual reaches a defined “benefit age.” The Company has not recognized service costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan.

This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation.  The funded status is the aggregate amount accrued, or the “accumulated benefit obligation,” which is equal to the present value of the benefits to be provided to the employee or any beneficiary.  Because the Company’s benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income.

Total net periodic benefit cost, comprised of interest cost only, was $31 thousand for the three months ended March 31, 2015, compared to $36 thousand for the three months ended March 31, 2014.

Benefits paid amounted to $69 thousand for both the three month periods ended March 31, 2015 and March 31, 2014. The Company anticipates accruing an additional $94 thousand to the plan during the remainder of 2015.

Supplemental Life Insurance

For certain senior and executive officers on whom the Bank owns bank owned life insurance ("BOLI"), the Company has provided supplemental life insurance through split-dollar life insurance arrangements, which provides a death benefit to the officer’s designated beneficiaries.

The Company has recognized a liability for future benefits associated with the supplemental life insurance plan, which is a non-qualified plan, which provides a benefit to an employee that extends to postretirement periods.

This plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation.  The funded status is the aggregate amount accrued, or the “accumulated postretirement benefit obligation,” which is the present value of the post-retirement benefits associated with this arrangement.

The total net periodic benefit cost, which was comprised primarily of interest costs, amounted to $18 thousand for both the three months ended March 31, 2015 and March 31, 2014.