12. Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Employee Benefits

Reconciliation of the change in the plan's benefit obligations

	December 31,
	2016			2015
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	21,385		$	22,559
Service cost		–			–
Interest cost		882			843
Assumption changes		95			(485	)
Actuarial (gain) loss		89			(14	)
Settlements		–			–
Benefits paid		(936	)		(1,518	)
Projected benefit obligation, end of year	$	21,515		$	21,385
Change in Plan Assets
Fair value of plan assets, beginning of year	$	16,374		$	19,848
Return on assets		1,031			(1,818	)
Employer contribution		–			–
Expenses		(226	)		(138	)
Settlements		–			–
Benefits paid		(936	)		(1,518	)
Fair value of plan assets, end of year	$	16,243		$	16,374
Funded Status at end of year	$	(5,272	)	$	(5,011	)

Weighted average assumptions used to determine pension benefit obligations

	December, 31
	2016		2015
Weighted average assumptions used to determine benefit obligations
Discount rate		4.05%		4.20%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate		4.20%		3.80%
Expected return on plan assets		7.50%		7.75%

Components of net periodic benefit cost

	December 31,
	2016			2015			2014
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	–
Other liabilities		(5,272	)		(5,011	)		(2,711	)
Net amount recognized	$	(5,272	)	$	(5,011	)	$	(2,711	)
Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	10,618		$	10,592		$	7,977
Unrecognized transition asset		–			–			–
Net amount recognized	$	10,618		$	10,592		$	7,977
Components of net periodic benefit cost
Interest cost	$	882		$	843		$	888
Expected return on assets		(1,199	)		(1,508	)		(1,727	)
Amortization of transition asset		–			–			–
Amortization of net  loss		553			349			–
Net periodic benefit cost		236			(316	)		(839	)
Settlement (gain)/loss		–			–			–
Total	$	236		$	(316	)	$	(839	)
Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	25		$	2,615		$	6,610
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	25		$	2,615		$	6,610

Weighted average asset allocation of our pension benefits

	December 31,
	2016		2015
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		85%		84%
Debt securities		15%		16%
Cash and cash equivalents		0%		0%
Total		100%		100%

Estimated Future Benefit Payments

Cash Flows
Estimated Future Benefit Payments (In thousands)
2017	$	785
2018		804
2019		845
2020		890
2021		930
Years 2022 - 2026		5,330
Anticipated Contributions in 2017	$	–

Fair value of plan assets

	December 31, 2016
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	4,581	$	–	$	–	$	4,581
Large Cap Value		–		2,238		–		2,238
Mid Cap Index		–		625		–		625
Small Cap Growth		–		621		–		621
Small Cap Value		–		687		–		687
Focus Value		–		676		–		676
Growth		–		1,980		–		1,980
International Growth		–		2,392		–		2,392
Core Bond		–		1,644		–		1,644
High Yield		–		356		–		356
Inflation Protected Bond		–		433		–		433
Money Market		–		10		–		10
Total	$	4,581	$	11,662	$	–	$	16,243

	December 31, 2015
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	4,643	$	–	$	–	$	4,643
Large Cap Value		–		2,061		–		2,061
Mid Cap Index		–		578		–		578
Small Cap Growth		–		552		–		552
Small Cap Value		–		573		–		573
Focus Value		–		571		–		571
Growth		–		2,215		–		2,215
International Growth		–		2,475		–		2,475
Core Bond		–		1,833		–		1,833
High Yield		–		354		–		354
Inflation Protected Bond		–		482		–		482
Money Market		–		37		–		37
Total	$	4,643	$	11,731	$	–	$	16,374

________________________

(1) Company common stock is classified as level 1 and valued using quoted prices in active markets for identical assets.

(2) All other plan assets in stock, bond and money market funds are classified as level 2 and valued using significant observable inputs.

(3) There are no plan assets classified as level 3 in the fair value hierarchy as a result of having significant unobservable inputs.