Note 25 - Retirement Plans

401(k) Plan

The Company sponsors a 401(k) Plan that allows participants to 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 Company recorded $203,000, and $186,000 of salaries & benefits expense attributable to the 401(k) Plan matching contributions during the three months ended March 31, 2018 and 2017, respectively. The Company made contributions to the 401(k) Plan of $199,000 and $179,000 during the three months ended March 31, 2018 and 2017, respectively.

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. Contributions to the plan totaling $465,000 and $525,000 during the three months ended March 31, 2018 and 2017, respectively, are included in salary expense. Company shares owned by the ESOP are paid dividends and included in the calculation of earnings per share exactly as other common shares outstanding.

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 $6,809,000 and $6,605,000 at March 31, 2018 and December 31, 2017, respectively. Earnings credits on deferred balances totaling $124,000 and $145,000 during the three months ended March 31, 2018 and 2017, respectively, are included in noninterest expense.

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 March 31,
	2018			2017
(in thousands)
Net pension cost included the following components:
Service cost-benefits earned during the period	$	243		$	235
Interest cost on projected benefit obligation		237			249
Amortization of net obligation at transition		1			1
Amortization of prior service cost		(13	)		(3	)
Recognized net actuarial loss		127			96

Net periodic pension cost	$	595		$	578

During the three months ended March 31, 2018 and 2017, the Company contributed and paid out as benefits $267,000 and $259,000, respectively, to participants under the plans. For the year ending December 31, 2018, the Company expects to contribute and pay out as benefits $1,106,000 to participants under the plans.