Retirement and Deferred Compensation Plans

12 Months Ended

Dec. 31, 2014

Retirement and Deferred Compensation Plans [Abstract]

Retirement and Deferred Compensation Plans

NOTE 15          Retirement and Deferred Compensation Plans

PSB has established a 401(k) profit sharing plan for its employees. PSB matches 100% of employees’ salary deferrals up to the first 1% of pay deferred and 50% of salary deferrals of the next 5% of pay deferrals, for a maximum match of 3.5% of salary. PSB also may declare a discretionary profit sharing contribution. The expense recognized for contributions to the plan for the years ended December 31, 2014, 2013, and 2012 was $521, $446, and $509, respectively.

PSB maintains deferred compensation agreements with certain executives and directors. PSB matches 20% of the amount of employees’ salary deferrals up to the first 15% of pay deferred. PSB directors may elect to defer earned directors’ fees into a separate deferred directors’ fees plan. No PSB match is made on deferred directors’ fees. Cumulative deferred balances earn a crediting rate generally equal to 100% of PSB’s return on average equity until retirement or separation from service. The agreements provide for benefits to be paid in a lump sum at retirement or in monthly installments for a period up to 15 years following each participant’s normal retirement date with interest payable at a fixed interest rate ranging from 7% to 8%. PSB is accruing this liability over each participant’s remaining period of service. The liability outstanding under the agreements was $3,427 and $3,155 at December 31, 2014 and 2013, respectively. The amount charged to operations was $333, $270, and $301 for 2014, 2013, and 2012, respectively.