Note 25 - Retirement Plans

401(k) Plan

The Company sponsors a 401(k) Plan whereby substantially all employees age 21 and over with 90 days of service may participate. Participants may contribute a portion of their compensation subject to certain limits based on federal tax laws. Prior to July 1, 2015, the Company did not contribute to the 401(k) Plan. Effective July 1, 2015, the Company initiated a discretionary matching contribution equal to 50% of participant’s elective deferrals each quarter, up to 4% of eligible compensation. The following table sets forth the benefit expense attributable to the 401(k) Plan matching contributions, and the contributions made by the Company to the 401(k) Plan during the periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2017		2016		2017		2016
401(k) Plan benefits expense	$	164	$	187	$	603	$	515
401(k) Plan contributions made by the Company	$	224	$	187	$	595	$	648

Employee Stock Ownership Plan

Substantially all employees with at least one year of service are covered by a discretionary employee stock ownership plan (ESOP). Contributions are made to the plan at the discretion of the Board of Directors. Company shares owned by the ESOP are paid dividends and included in the calculation of earnings per share exactly as other common shares outstanding. The following table sets forth the benefit expense attributable to the ESOP, and the contributions made by the Company to the ESOP during the periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2017		2016		2017		2016
ESOP benefits expense	$	537	$	463	$	1,610	$	1,368
ESOP contributions made by the Company	$	537		—	$	2,073	$	905

Deferred Compensation Plans

The Company has deferred compensation plans for certain directors and key executives, which allow certain directors and key executives designated by the Board of Directors of the Company to defer a portion of their compensation. The Company has purchased insurance on the lives of the participants and intends to hold these policies until death as a cost recovery of the Company’s deferred compensation obligations of $6,431,000 and $6,525,000 at September 30, 2017 and December 31, 2016, respectively. The following table sets forth the earnings credits on deferred balances included in noninterest expense during the periods indicated:


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2017		2016		2017		2016
Deferred compensation earnings credits included in noninterest expense	$	111	$	111	$	365	$	366

Supplemental Retirement Plans

The Company has supplemental retirement plans for current and former directors and key executives. These plans are non-qualified defined benefit plans and are unsecured and unfunded. The Company has purchased insurance on the lives of the participants and intends (but is not required) to use the cash values of these policies to pay the retirement obligations. The following table sets forth the net periodic benefit cost recognized for the plans:


	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2017			2016			2017			2016
Net pension cost included the following components:
Service cost-benefits earned during the period	$	235		$	260		$	706		$	781
Interest cost on projected benefit obligation		248			256			743			769
Amortization of net obligation at transition		—			1			1			1
Amortization of prior service cost		(3	)		(10	)		(8	)		(30	)
Recognized net actuarial loss		98			137			292			412

Net periodic pension cost	$	578		$	644		$	1,734		$	1,933

Company contributions to pension plans	$	267		$	260		$	856		$	834
Pension plan payouts to participants	$	267		$	260		$	856		$	834

For the year ending December 31, 2017, the Company expects to contribute and pay out as benefits $1,117,000 to participants under the plans.