Note 16 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Employee Benefit Plans

Note 16. Employee Benefit Plans

The Company has a profit sharing plan, which includes a provision designed to qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended, to allow for participants to defer a portion of their annual compensation under the profit sharing plan. Substantially all employees who are at least 18 years of age are eligible to participate in

the plan. The Company matches 100% of an employee’s deferrals up to the first 3% of an employee’s annual compensation, and 50% of the next 3% of an employee’s deferred annual compensation, up to a maximum amount of

4.5% of an employee’s annual compensation. Additionally, at its discretion, the Company may make additional contributions to the plan, which are allocated to the accounts of participants in the plan based on relative compensation. There were no discretionary contributions for the years ended December 31, 2023, 2022 and 2021. Company matching contributions for the years ended December 31, 2023, 2022, and 2021 were as follows:

	2023		2022		2021
	(dollars in thousands)
Matching contribution	$	3,314	$	3,071	$	2,446

The Company has entered into nonqualified supplemental executive retirement plans (SERPs) with certain executive officers. The SERPs allow certain executives to accumulate retirement benefits beyond those provided by the qualified retirement plan. Changes in the liability related to the SERPs, included in other liabilities, are as follows for the years ended December 31, 2023, 2022 and 2021:

	2023		2022		2021
	(dollars in thousands)
Balance, beginning	$	8,165	$	7,273	$	6,189
Expense accrued		889		1,286		1,532
Cash payments made		(365)		(394)		(448)
Balance, ending	$	8,689	$	8,165	$	7,273

The Company has a deferred compensation plan under which it has entered into deferred compensation agreements with certain officers. Under the provisions of the agreements, the executive officers may defer compensation and the Company matches the deferral up to certain maximums. The Company’s matching contribution varies by officer as well.  Certain officers have a 100% match and have a maximum of between $10 thousand and $25 thousand annually as set forth in each officer’s participation agreement. Interest on the deferred amounts is earned at prime rate subject to a minimum of 4% and a maximum of 12%, with such limits differing by officer. Other officers have a 50% match and have a maximum between 4% and 12% of compensation as set forth in each officers’ participation agreement. Interest on the deferred amounts is earned at prime rate plus one percentage point and has a minimum of 4% and shall not exceed 8%.

Upon retirement, each executive officer and other officer will, subject to a potential six-month deferral, receive the deferral balance in 180 equal monthly installments. As of December 31, 2023 and 2022, the liability related to the agreements totaled $46.8 million and $38.2 million, respectively.

Note 16. Employee Benefit Plans (continued)

Changes in the deferred compensation agreements, included in other liabilities, are as follows for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(dollars in thousands)
Balance, beginning	$	38,255	$	32,353	$	24,713
Employee deferrals		4,306		3,615		4,900
Company match and interest		4,788		2,776		3,048
Cash payments made		(549)		(489)		(308)
Balance, ending	$	46,800	$	38,255	$	32,353