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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans

401(k)/Profit Sharing Plan

The Company has a 401(k)/profit sharing plan and the majority of employees participate in the plan. Employees may contribute pre-tax contributions to the 401(k)/profit sharing plan up to the maximum amount allowed by federal tax laws. The Company makes matching contributions of up to 4% of an employee’s eligible compensation. The Company may make additional matching contributions subject to the discretion of the Board of Directors. For the year ended December 31, 2016, 2015 and 2014, these contributions amounted to 3% of pre-tax compensation. For the year ended December 31, 2016, 2015 and 2014, expenses under the 401(k)/Profit Sharing plan amounted to $2.2 million, $1.5 million, and $1.4 million, respectively.

SERP and Other Postretirement Benefit Plan

The Company sponsors unfunded, non-qualified SERPs for certain officers. These agreements are designed to make up the shortfall (when compared to a non-highly compensated employee) in replacing income at retirement due to IRS compensation and benefit limits under the 401(k) plan and Social Security. With a SERP in place, participants should be able to replace 65 –75% of their final average compensation. For those eligible for benefits, the SERP provides for a minimum 15-year guaranteed benefit for all vested participants. In addition, the Company provides medical and life insurance to certain eligible retired employees under the other postretirement benefit plan.

The following table summarizes changes in the benefit obligation and plan assets for (i) SERP and (ii) the other postretirement benefit plan as of December 31, 2016 and 2015:
 
SERP
 
Other Postretirement
Benefits
  
2016
 
2015
 
2016
 
2015
Benefit obligations:
  

 
  

 
  

 
  
Beginning of year
$
11,052

 
$
10,834

 
$
3,447

 
$
2,997

Service cost
308

 
307

 
59

 
62

Interest cost
432

 
424

 
151

 
117

Actuarial (gain) loss
219

 
(32
)
 
143

 
92

Business combinations(1)
—

 
—

 
—

 
312

Benefits paid
(488
)
 
(481
)
 
(165
)
 
(133
)
End of year
11,523

 
11,052

 
3,635

 
3,447

Fair value of plan assets:
 
 
 
 
 
 
 
Beginning of year
—

 
—

 
—

 
—

Employer contributions
488

 
481

 
165

 
133

Benefits paid
(488
)
 
(481
)
 
(165
)
 
(133
)
End of year
—

 
—

 
—

 
—

Funded status at end of year(2)
$
11,523

 
$
11,052

 
$
3,635

 
$
3,447

Amounts recognized in AOCI, net of tax:
 
 
 
 
 
 
 
Net actuarial loss
$
1,791

 
$
1,789

 
$
495

 
$
423

Prior service cost (credit)
—

 
5

 
(156
)
 
(170
)
Total
$
1,791

 
$
1,794

 
$
339

 
$
253


(1)
In connection with the Merger, the Company assumed its post-retirement benefits for certain former employees and their spouses whereby the Company will cover 100% of healthcare premiums.
(2)
Reported within other liabilities on the consolidated statements of condition.

The accumulated benefit obligation for the SERP was $8.5 million at December 31, 2016 and 2015. In 2017, approximately $247,000 in net actuarial losses and no prior service costs, are expected to be recognized as components of net period benefit cost for the SERP, and approximately $41,000 and $24,000 in net actuarial losses and prior service credits, respectively, are expected to be recognized for the other postretirement benefit plan.

The components of net period benefit cost and other amounts recognized in OCI, before taxes, were as follows:
 
SERP
 
Other Postretirement
Benefits
  
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net period benefit cost:
  

 
  

 
  

 
  

 
  

 
  

Service cost
$
308

 
$
307

 
$
270

 
$
59

 
$
62

 
$
45

Interest cost
432

 
424

 
456

 
151

 
117

 
132

Recognized net actuarial loss
220

 
218

 
140

 
30

 
24

 
10

Amortization of prior service cost (credit)
7

 
19

 
19

 
(22
)
 
(22
)
 
(22
)
Net period benefit cost
967

 
968

 
885

 
218

 
181

 
165

Changes in funded status recognized in OCI, before taxes:
  

 
  

 
  

 
 
 
 
 
 
Net actuarial (gain) loss
219

 
(32
)
 
777

 
143

 
92

 
(134
)
Reclassifications to net period benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Amortization of net unrecognized actuarial loss
(220
)
 
(218
)
 
(140
)
 
(30
)
 
(24
)
 
(10
)
Amortization of prior service (cost) credit
(7
)
 
(19
)
 
(19
)
 
22

 
22

 
22

Total recognized in OCI, before taxes
(8
)
 
(269
)
 
618

 
135

 
90

 
(122
)
Total recognized in net period benefit cost and OCI, before taxes
$
959

 
$
699

 
$
1,503

 
$
353

 
$
271

 
$
43



In the first quarter of 2014, the Company amended the terms of its other postretirement benefit plan impacting the eligibility of employees. The amendment to the plan reduced the Company's benefit obligation by $308,000 at December 31, 2014 and is reflected within the year ended December 31, 2014 other postretirement benefits plan net actuarial gain.

The following assumptions were used in determining benefit obligations and net period benefit costs:
 
SERP
 
Other Postretirement
Benefits
  
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Weighted-average assumptions as of end of year:
  

 
  

 
  

 
  

 
  

 
  

Discount rate for benefit obligation
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
 
4.50
%
 
4.00
%
Discount rate for net period benefit cost
4.00
%
 
4.00
%
 
4.75
%
 
4.50
%
 
4.00
%
 
5.02
%
Rate of compensation increase for benefit obligation
4.00
%
 
4.00
%
 
4.00
%
 
—

 
—

 
—

Rate of compensation increase for net periodic benefit cost
4.00
%
 
4.00
%
 
4.50
%
 
—

 
—

 
—

Health care cost trend rate assumed for future years
—

 
—

 
—

 
7.00
%
 
7.00
%
 
7.00
%


A 1.0% increase or decrease in the assumed health care cost trend rate would not materially increase or decrease the Company's accumulated postretirement benefit obligation and the related service and interest cost at December 31, 2016. The postretirement plan has a built-in cap on annual benefits to participants and, thus, the accumulated postretirement benefit obligation and the assumed health care cost trend are relatively stable each period.

In 2017, the expected contribution is $475,000 for the SERP and $156,000 for the other postretirement benefits plan. The expected benefit payments for the next ten years are presented in the following table:
 
SERP
 
Other Postretirement Benefits
2017
475

 
156

2018
473

 
163

2019
477

 
166

2020
486

 
169

2021
542

 
182

2022-2026
3,127

 
1,043