Note 13.

Employee Benefit Plans

Employee Stock Ownership and Savings Plan

The Company maintains the Employee Stock Ownership and Savings Plan (“KSOP”). Coverage under the plan is provided to all employees who meet minimum eligibility requirements. The KSOP held 457,765 shares of the Company’s common stock as of December 31, 2014, 499,075 shares as of December 31, 2013, and 561,551 shares as of December 31, 2012.

Employer Stock Fund

The Company made annual contributions to the stock feature within the KSOP at the discretion of the Board of Directors until December 31, 2006, when the plan was frozen to future contributions. Substantially all plan assets are invested in the Company’s common stock. All KSOP contributions beginning in 2007 have been made to the employee savings feature of the plan.

Employee Savings Plan

The Company provides a 401(k) savings feature within the KSOP. The Company makes matching contributions to employee deferrals at levels determined by the Board of Directors annually. Matching contributions are made in the first quarter following each plan year, and employees must be employed on the last day of the plan year to be eligible to receive the matching contribution. The cost of the Company’s 100% matching contributions to qualified deferrals under the 401(k) savings component of the KSOP was $1.58 million in 2014, $1.61 million in 2013, and $1.27 million in 2012. Matching contributions for the 2014 and 2013 plans were made in cash, and matching contributions for the 2012 plan was made in a combination of cash and the Company’s common stock.

Employee Welfare Plan

The Company provides various medical, dental, vision, life, accidental death and dismemberment, and long-term disability insurance benefits to all full-time employees who elect coverage under this program. A third-party administrator manages the health plan. Monthly employer and employee contributions are made to a tax-exempt employee benefits trust where the third-party administrator processes and pays claims. As of December 31, 2014, stop-loss insurance coverage limited the Company’s risk of loss to $125 thousand for individual claims and $4.06 million aggregate claims. Expenses related to the health plan were $2.88 million in 2014, $3.02 million in 2013, and $2.25 million in 2012.

Deferred Compensation Plan

The Company maintains deferred compensation agreements with certain current and former officers that provide benefit payments, over various periods, commencing at retirement or death. Accrued benefits totaled $451 thousand as of December 31, 2014, and $455 thousand as of December 31, 2013, which are based on the present values of expected payments and estimated life expectancies. Expenses related to the deferred compensation plan were $60 thousand in each of the three years ended December 31, 2014.

Supplemental Executive Retention Plan

The Company maintains the Supplemental Executive Retention Plan (“SERP”) for key members of senior management. The domestic noncontributory, nonqualified SERP provides for a defined benefit, at normal retirement age, targeted at 35% of the participant’s projected final average compensation, subject to a defined maximum annual benefit. Benefits under the SERP generally become payable at age 62. The SERP is an unfunded plan; thus, there are no plan assets. The following table presents the components of the SERP’s net periodic pension cost in the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2014		2013		2012
Service cost	$	106	$	135	$	153
Interest cost		290		246		203
Amortization of losses		—		49		45
Amortization of prior service cost		187		187		134

Net periodic cost	$	583	$	617	$	535

The actuarial benefit plan obligation was $6.63 million as of December 31, 2014, and $5.62 million as of December 31, 2013. The obligation as of December 31, 2014, included a $651 thousand actuarial loss. The assumed discount rate was decreased to 4.41% as of December 31, 2014, compared to 5.25% as of December 31, 2013. The following schedule presents the projected benefit payments to be paid under the SERP, by year, as of December 31, 2014:


(Amounts in thousands)
2015	$	247
2016		247
2017		351
2018		351
2019		348
2020 through 2024		2,135

Directors’ Supplemental Retirement Plan

The Company maintains the Directors’ Supplemental Retirement Plan (“Directors’ Plan”) for non-management directors. The domestic noncontributory, nonqualified Directors’ Plan provides for a defined benefit, at normal retirement age, up to 100% of the participant’s highest consecutive three-year average compensation. Benefits under the Directors’ Plan generally become payable at age 70. The Directors’ Plan is an unfunded plan; thus, there are no plan assets.

The following table presents the components of the Directors’ Plan’s net periodic pension cost in the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2014		2013		2012
Service cost	$	22	$	26	$	27
Interest cost		46		41		39
Amortization of gains (losses)		—		1		—
Amortization of prior service cost		73		90		90

Net periodic cost	$	141	$	158	$	156

The actuarial benefit plan obligation was $997 thousand as of December 31, 2014, and $975 thousand as of December 31, 2013. The assumed discount rate decreased to 4.41% as of December 31, 2014, compared to 5.25% as of December 31, 2013. The following schedule presents the projected benefit payments to be paid under the Directors’ Plan, by year, as of December 31, 2014:


(Amounts in thousands)
2015	$	84
2016		82
2017		113
2018		111
2019		109
2020 through 2024		579