Note 17 - Deferred Compensation Plan

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Deferred Compensation Plan [Text Block]

NOTE

17

.

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

$774,000

and

$707,000

as of

December 31, 2019

and

2018,

respectively. Benefit payments under the contracts were

$82,000

 in

2019

and

$108,000

in

2018.

Provisions charged to operations totaled

$63,000

in

2019

and

$52,000

in

2018.

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

$190,525

 in

2019

and

$135,000

in

2018.