Note 15 - Benefit Plans

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

15.     Benefit Plans

401(k) Plan

Teammates are given the opportunity to participate in The Palmetto Bank 401(k) Retirement Plan (the “401(k) Plan”) which is designed to supplement a teammate’s retirement income. Teammates are eligible to participate in the 401(k) Plan immediately when hired and participants are able to defer a portion of their compensation into the 401(k) Plan. Matching contributions, if any, are contributed to the 401(k) Plan prior to the end of each plan year.

Through June 30, 2014, teammate contributions were matched at a rate of $0.10 per dollar up to 6% of a teammate’s eligible compensation. Effective July 1, 2014, the match of teammate contributions was increased to a rate of $0.25 per dollar up to 6% of a teammate’s eligible compensation. The Company’s matching contributions totaled $32 thousand and $12 thousand for the three months ended March 31, 2015 and 2014, respectively.

Under the Internal Revenue Service (“IRS”) rules related to 401(k) plans, the IRS imposes certain annual limitations on the amount of allowable contributions to the 401(k) Plan by highly compensated participants (as determined annually by applying the required IRS tests). To the extent teammates receive refunds of prior deferrals as a result of the annual limitations, the Bank has in place a benefit equalization plan into which such teammates may contribute refunds received. The benefit equalization plan operates similar to the 401(k) Plan except that this plan is a nonqualified plan under the IRS rules, and the assets of the benefit equalization plan are subject to the general creditors of the Bank. At March 31, 2015 and December 31, 2014, assets in the benefit equalization plan were $41 thousand and $40 thousand, respectively, and are included in Other assets in the Consolidated Balance Sheet. An offsetting liability of $41 thousand and $40 thousand, respectively, is reflected in Other liabilities and represents the Bank’s obligation to benefit equalization plan participants.

Defined Benefit Pension Plan

Prior to 2008, the Company offered a noncontributory, defined benefit pension plan. Effective December 31, 2007, the Company ceased accruing pension benefits for participants in the Pension Plan. Although no previously accrued benefits were lost, teammates no longer accrue benefits for service subsequent to 2007.

The Company accounts for the Pension Plan using an actuarial model. This model allocates pension costs over the service period of teammates in the Pension Plan. The underlying principle is that teammates render services ratably over this period; therefore, the income statement impacts of pension benefits should follow a similar pattern.    

The Company’s net accrued pension liability is included in Other liabilities in the Consolidated Balance Sheets and totaled $2.8 million and $3.0 million at March 31, 2015 and December 31, 2014, respectively.

Cost of the Pension Plan. The following table summarizes the components of net periodic pension expense, which is included in Salaries and other personnel expense in the Consolidated Statements of Income, for the periods indicated (in thousands).

	For the three months ended March 31,
	2015			2014
Interest cost	$	205		$	268
Expected return on plan assets		(267	)		(317	)
Amortization of net actuarial loss		225			255
Net periodic pension expense	$	163		$	206

As a result of the decision to cease accruing benefits under the Pension Plan effective December 31, 2007, no costs relative to service have been necessary since that date as teammates no longer accrue benefits for services rendered.

Pension Plan Assets. The following table summarizes the fair value of Pension Plan assets by major category at the dates indicated (in thousands).

	March 31,		December 31,
	2015		2014
Cash and cash equivalents	$	1,246	$	902
Mutual funds		916		902
Corporate stocks		1,097		1,085
Exchange traded funds		14,597		14,351
Foreign equities		66		182
Other		1		7
Total Pension Plan assets	$	17,923	$	17,429

Fair Value Measurements. The following tables summarize Pension Plan assets measured at fair value at the dates indicated aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

	March 31,		December 31,
	2015		2014
Level 1	$	2,344	$	1,994
Level 2		15,579		15,435
Level 3		-		-
Total Pension Plan assets	$	17,923	$	17,429

There were no changes in the Pension Plan’s Level 3 assets during the three months ended March 31, 2015.

Current and Future Expected Contributions. The Company contributed $400 thousand to the Pension Plan in February 2015, and expects to contribute an additional $1.2 million during 2015.