14) Benefit Plans

401(k) Savings Plan

The Company offers a 401(k) savings plan that allows employees to contribute up to a maximum percentage of their compensation, as established by the Internal Revenue Code. The Company made a discretionary matching contribution of up to $1,500 for each employee's contributions in 2015. The Company made a discretionary matching contribution of up to $1,000 for each employee's contributions in 2014 and 2013. Contribution expense was $342,000, $206,000, and $196,000 in 2015, 2014 and 2013, respectively.

Employee Stock Ownership Plan

The Company sponsors a non-contributory employee stock ownership plan. To participate in this plan, an employee must have worked at least 1,000 hours during the year and must be employed by the Company at year-end. Employer contributions to the ESOP are discretionary. The Company has suspended contributions to the ESOP since 2010. At December 31, 2015, the ESOP owned 123,707 shares of the Company's common stock.

Deferred Compensation Plan

The Company has a nonqualified deferred compensation plan for its directors ("Deferral Agreements"). Under the Deferral Agreements, a participating director may defer up to 100% of his or her board fees into a deferred account. The director may elect a distribution schedule of up to ten years. Amounts deferred earn interest. The Company's deferred compensation obligation of $20,000 and $50,000 as of December 31, 2015 and 2014 is included in "Accrued interest payable and other liabilities."

The Company has purchased life insurance policies on the life of one of its former directors who has a Deferral Agreement. It is expected that the earnings on these policies will offset the cost of the program. In addition, the Company will receive death benefit payments upon the death of the former director. The proceeds will permit the Company to "complete" the deferral program as the former director originally intended if he dies prior to the completion of the deferral program. The disbursement of deferred fees is accelerated at death and commences one month after the former director dies.

In the event of the former director's disability prior to attainment of his benefit eligibility date, the former director may request that the Board permit him to receive an immediate disability benefit equal to the annualized value of the director's deferral account.

Nonqualified Defined Benefit Pension Plan

The Company has a supplemental retirement plan covering some current and some former key executives and directors ("SERP"). The SERP is an unfunded, nonqualified defined benefit plan. The combined number of active and retired/terminated participants in the SERP was 53 at December 31, 2015. The defined benefit represents a stated amount for key executives and directors that generally vests over nine years and is reduced for early retirement. The projected benefit obligation is included in "Accrued interest payable and other liabilities" on the consolidated balance sheets. The SERP has no assets and the entire projected benefit obligation is unfunded. The measurement date of the SERP is December 31.

The following table sets forth the SERP's status at December 31:

	2015			2014
	(Dollars in thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	24,570		$	20,712
Service cost		862			714
Actuarial loss (gain)		805			3,059
Interest cost		883			911
Benefits paid		(833	)		(826	)

Projected benefit obligation at end of year	$	26,287		$	24,570


Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	7,149		$	6,730

Weighted-average assumptions used to determine the benefit obligation at year-end:

	2015			2014
Discount rate		4.00	%		3.65	%
Rate of compensation increase		N/A			N/A

Estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions, are as follows:

Year	Estimated Benefit Payments
	(Dollars in thousands)
2016	$	919
2017		1,413
2018		1,549
2019		1,585
2020		1,635
2021 to 2025		9,468

The components of pension cost for the SERP follow:

	2015		2014
	(Dollars in thousands)
Components of net periodic benefit cost:
Service cost	$	862	$	714
Interest cost		883		911
Amortization of net actuarial loss		386		142

Net periodic benefit cost	$	2,131	$	1,767

The estimated net actuarial loss and prior service cost for the SERP that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit cost over the next fiscal year are $239,000 and $386,000 as of December 31, 2015 and 2014, respectively.

Net periodic benefit cost was determined using the following assumption:

	2015			2014
Discount rate		3.65	%		4.50	%
Rate of compensation increase		N/A			N/A

Split-Dollar Life Insurance Benefit Plan

The Company maintains life insurance policies for some current and some former directors and officers that are subject to split-dollar life insurance agreements, which continues after the participant's employment and retirement. All participants are fully vested in their split-dollar life insurance benefits. The accrued benefit liability for the split-dollar insurance agreements represents either the present value of the future death benefits payable to the participants' beneficiaries or the present value of the estimated cost to maintain life insurance, depending on the contractual terms of the participant's underlying agreement.

The split-dollar life insurance projected benefit obligation is included in "Accrued interest payable and other liabilities" on the consolidated balance sheets. The measurement date of the split-dollar life insurance benefit plan is December 31.

The following sets forth the funded status of the split dollar life insurance benefits.

	2015		2014
	(Dollars in thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	4,641	$	4,353
Interest cost		169		196
Actuarial loss.		1,405		92

Projected benefit obligation at end of year	$	6,215	$	4,641

Amounts recognized in accumulated other comprehensive loss at December 31 consist of:

	2015		2014
	(Dollars in thousands)
Net actuarial loss	$	2,147	$	540
Prior transition obligation		1,418		1,507

Accumulated other comprehensive loss	$	3,565	$	2,047

Weighted-average assumption used to determine the benefit obligation at year-end follow:

		2015			2014
Discount rate			4.00	%		3.65	%

Components of net periodic benefit cost during the year are:

	2015			2014
	(Dollars in thousands)
Amortization of prior transition obligation	$	(113	)	$	(102	)
Interest cost		169			196

Net periodic benefit cost	$	56		$	94

The estimated net actuarial loss and prior transition obligation for the split-dollar life insurance benefit plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $90,000 as of December 31, 2015 and 2014.

Weighted-average assumption used to determine the net periodic benefit cost:

		2015			2014
Discount rate			3.65	%		4.50	%