Note 16 - Deferred Compensation Plan

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Deferred Compensation Plan [Text Block]

(

1

6

)

Deferred

Compensation

Plan

Colony

Bank, the wholly-owned subsidiary, has deferred compensation plans covering certain former directors and certain officers choosing to participate through individual deferred compensation contracts. In accordance with terms of the contracts, the Bank is committed to pay the participant’s deferred compensation over a specified number of years, beginning at age

65.

In the event of a participant’s death before age

65,

payments are made to the participant’s named beneficiary over a specified number of years, beginning on the

first

day of the month following the death of the participant.

Liabilities

accrued under the plans totaled

$766,667

and

$825,599

as of

December 31, 2017

and

2016,

respectively. Benefit payments under the contracts were

$110,080

in

2017

and

$135,885

in

2016.

Provisions

charged to operations totaled

$55,572

in

2017,

$57,125

in

2016

and

$196,869

in

2015.

The Company has purchased life insurance policies on the plans

’ participants and uses the cash flow from these policies to partially fund the plan. Fee income recognized with these plans totaled

$233,064

in

2017,

$165,128

in

2016

and

$174,675

in

2015.

In addition death benefits recognized as income totaled

$137,058

in

2015.