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EMPLOYEE BENEFITS
3 Months Ended
Mar. 31, 2017
Retirement Benefits [Abstract]  
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS

KSOP
The Company maintains an Employee Stock Ownership Plan containing Section 401(k) provisions covering substantially all employees (“KSOP”). The plan provides for a matching contribution of up to 5% of a participant’s qualified compensation starting January 1, 2016. As of March 31, 2017, the plan included a put option, which is a right to demand that the sponsor redeem shares of employer stock distributed to the participant under the terms of the plan, for which there is no public market for such shares, with an established cash price. This put option was extinguished upon completion of our initial public offering and listing of our common stock on the NASDAQ Global Select Market in May 2017, as described in Note 1. Total contributions accrued or paid during the three months ended March 31, 2017 and 2016 totaled $226 and $234, respectively.

Benefits under the KSOP generally are distributed to participants in the form of cash, although participants have the right to receive distributions in the form of shares of or common stock. Because the Company’s common stock was not yet actively traded as of March 31, 2017, the participants could demand (in accordance with the terms of the KSOP and applicable law) that the Company repurchase any shares of common stock distributed to them at the estimated fair value.

The fair value of shares of common stock, held by the KSOP, was deducted from permanent shareholders’ equity in the consolidated balance sheets, and reflected in a line item below liabilities and above shareholders’ equity. As of March 31, 2017, this presentation was necessary in order to recognize the put option within the KSOP-owned shares, consistent with SEC guidelines, because the Company was not yet publicly traded. The Company used a valuation by an external third party to determine the maximum possible cash obligation related to those securities. Increases or decreases in the value of the cash obligation were included in a separate line item in the statements of changes in shareholders’ equity. The fair value of allocated and unallocated shares subject to the repurchase obligation totaled $34,300 and $31,661 at March 31, 2017 and December 31, 2016, respectively.

As of March 31, 2017 and December 31, 2016, the number of shares held by the KSOP was 1,319,225. Of these shares, there were 50,000 shares unallocated to plan participants as of March 31, 2017 and December 31, 2016.  In the three months ended March 31, 2017 and 2016, the Company did not repurchase any shares from KSOP participants that received distributions of shares from the KSOP which were subject to the put option that applied to the KSOP shares before we were publicly traded. All shares held by the KSOP were treated as outstanding at each of the respective period ends. 

Supplemental Retirement Plan
The Company maintains a non-qualified, non-contributory supplemental retirement plan. The plan covers a retired officer to provide benefits equal to amounts payable under the Company’s retirement plan and certain social security benefits to aggregate a predetermined percentage of the officer’s final five-year average salary. The plan is non-funded. There were no amounts expensed during the three months ended March 31, 2017 and 2016. The recorded obligation was approximately $0 and $5 as of March 31, 2017 and December 31, 2016, respectively and is included in accrued interest and other liabilities on the consolidated balance sheets.

Executive Incentive Retirement Plan
The Company established a non-qualified, non-contributory executive incentive retirement plan covering a selected group of key personnel to provide benefits equal to amounts computed under an “award criteria” at various targeted salary levels as adjusted for annual earnings performance of the Company. The plan is non-funded.

The Executive Incentive Retirement Plan, the Company has purchased life insurance policies on the respective officers. The cash surrender value of life insurance policies held by the Company totaled $17,922 and $17,804 as of March 31, 2017 and December 31, 2016, respectively.

Expense related to these plans totaled $256 and $196 for the three months ended March 31, 2017 and 2016, respectively, and is included in employee compensation and benefits on the consolidated statements of earnings. The recorded liability totaled approximately $2,251 and $2,002 as of March 31, 2017 and December 31, 2016, respectively and is included in accrued interest and other liabilities on the consolidated balance sheets.

Bonus Plan
The Company has a Bonus Plan that rewards officers and employees based on performance of individual business units of the Company. Earnings and growth performance goals for each business unit and for the Company as a whole are established at the beginning of the calendar year and approved annually by the board of directors. The Bonus Plan provides for a predetermined bonus amount to be contributed to the employee bonus pool based on (i) earnings target and growth for individual business units and (ii) achieving certain pre-tax return on average equity and pre-tax return on average asset levels for the Company as a whole. These bonus amounts are established annually by our board of directors. The bonus expense under this plan for the three months ended March 31, 2017 and 2016 totaled $581 and $499, respectively and is included in employee compensation and benefits on the consolidated statements of earnings.