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 428,785 shares of the Company’s common stock as of December 31, 2015, 457,765 shares as of December 31, 2014, and 499,075 shares as of December 31, 2013.

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 matching contributions to qualified deferrals under the 401(k) savings component of the KSOP was $1.53 million in 2015, $1.58 million in 2014, and $1.61 million in 2013. Matching contributions for 2015 were made in cash and the Company’s common stock and matching contributions for 2014 and 2013 were made in cash.

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, 2015, stop-loss insurance coverage generally limited the Company’s risk of loss to $125 thousand for individual claims and $4.08 million aggregate claims. Expenses related to the health plan were $3.06 million in 2015, $2.88 million in 2014, and $3.02 million in 2013.

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 $458 thousand as of December 31, 2015, and $451 thousand as of December 31, 2014, 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, 2015.

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)	2015		2014		2013
Service cost	$	133	$	106	$	135
Interest cost		281		290		246
Amortization of losses		7		—		49
Amortization of prior service cost		187		187		187

Net periodic cost	$	608	$	583	$	617

The actuarial benefit plan obligation was $7.08 million as of December 31, 2015, and $6.63 million as of December 31, 2014. The obligation as of December 31, 2015, included a $111 thousand actuarial loss. The assumed discount rate was increased to 4.62% as of December 31, 2015, compared to 4.41% as of December 31, 2014. The following schedule presents the projected benefit payments to be paid under the SERP, by year, as of December 31, 2015:


(Amounts in thousands)
2016	$	249
2017		352
2018		352
2019		350
2020		374
2021 through 2025		2,118

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)	2015		2014		2013
Service cost	$	47	$	22	$	26
Interest cost		53		46		41
Amortization of losses		60		—		1
Amortization of prior service cost		72		73		90

Net periodic cost	$	232	$	141	$	158

The actuarial benefit plan obligation was $1.31 million as of December 31, 2015, and $997 thousand as of December 31, 2014. The assumed discount rate increased to 4.62% as of December 31, 2015, compared to 4.41% as of December 31, 2014. The following schedule presents the projected benefit payments to be paid under the Directors’ Plan, by year, as of December 31, 2015:


(Amounts in thousands)
2016	$	84
2017		110
2018		108
2019		106
2020		149
2021 through 2025		702