Note 16: Retirement Benefit Plans

The Company has non-qualified supplemental executive retirement agreements with certain retired officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death. The Company also has a supplemental executive retirement agreement with a current executive officer. This agreement provides a stream of future payments in accordance with individually defined vesting schedules upon retirement, termination, or in the event that the participating executive leaves the Company following a change of control event.

The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic benefit cost, related to post-retirement benefits are net actuarial losses related to supplemental retirement plans of $439 and $417, as of December 31, 2016 and 2015, respectively.

A December 31 measurement date is used for the supplemental executive retirement plans. The following table sets forth changes in benefit obligation, changes in plan assets, and the funded status of the plans as of and for the years ended December 31:


		Supplemental Executive
		Retirement Plans
		2016			2015
Obligations and Funded Status

Change in Benefit Obligation
Benefit obligation at beginning of year	$	3,811		$	3,969
Service cost		72			71
Interest cost		128			125
Actuarial (gain) loss on supplemental retirement plans		(50	)		(63	)
Benefits and expenses paid		(291	)		(291	)
Benefit obligation at end of year	$	3,670		$	3,811

Change in plan assets
Fair value of plan assets at beginning of year	$	--		$	--
Benefits and expenses paid		(291	)		(291	)
Contributions		291			291
Fair value of plan assets at end of year	$	--		$	--
Funded status at end of year	$	(3,720	)	$	(3,874	)

As of December 31, 2016 and 2015, the Company had recognized liabilities of $3,720 and $3,874, respectively, for the supplemental executive retirement plans. These amounts are reported within other liabilities on the consolidated balance sheets.

The following table summarizes the assumptions, based on long-term bond yields, used to determine the benefit obligations and net periodic benefit costs for the years ended December 31, 2016, 2015, and 2014:


	2016		2015		2014
Weighted-average discount rate beginning of the year	3.48	%	3.27	%	4.02	%
Weighted-average discount rate end of the year	3.31		3.48		3.27

The discount rate was chosen based on high-quality long-term bond yields with maturity dates that match the timing and amount of the expected future benefit payments as of the measurement date.

The net periodic benefit cost for the years ended December 31 included the following components:

Components of Net Periodic Benefit Cost and Other Amounts
Recognized in the Consolidated Income Statements		2016		2015		2014

Service cost	$	72	$	71	$	64
Interest cost		128		125		149
Recognition of net actuarial loss		28		38		28
Total recognized in the consolidated income statements	$	228	$	234	$	241

Other Changes and Benefit Obligations Recognized in Other
Comprehensive Income (pre-tax)
Recognition of net actuarial loss		60		79		174
Total recognized in other comprehensive income (pre-tax)		60		79		174
Total recognized in the consolidated income statements and
other comprehensive income (pre-tax)	$	288	$	313	$	415

The estimated net actuarial loss for the supplemental executive retirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $21.

The Company expects to contribute the following amounts to fund benefit payments under the supplemental executive retirement plans:

		Amount
2017	$	378
2018		378
2019		378
2020		293
2021		260
2022 & thereafter		3,038
	$	4,725

401(k) Plan: The Company maintains a Section 401(k) savings plan for substantially all of its employees. Employees are eligible to participate in the 401(k) Plan on the first day of any quarter following their date of hire and attainment of age 21 ½ . Under the plan, the Company makes a matching contribution of a portion of the amount contributed by each participating employee, up to a percentage of the employee's annual salary. The plan allows for supplementary profit sharing contributions by the Company, at its discretion, for the benefit of participating employees. The total expense for this plan in 2016, 2015, and 2014 was $439, $411, and $375, respectively.