15. Employee benefit plans:

The Company sponsors a separate Employee Stock Ownership Plan (“ESOP”) and Retirement Profit Sharing 401(k) Plan. The Company also maintains Supplemental Executive Retirement Plans (“SERP”), and an Employees’ Pension Plan, which is currently frozen.

Under the ESOP, amounts voted by the Company’s Board of Directors are paid into the ESOP and each participant is credited with an amount in proportion to their annual compensation. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions.

Under the Retirement Profit Sharing Plan, amounts approved by the Board of Directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law.

The Company contributed $197, $185 and $156 to the ESOP in 2018, 2017 and 2016. In addition, the Company contribution of $1,047, $923 and $786 to the Retirement Profit Sharing Plan in 2018, 2017 and 2016, was comprised of a safe harbor contribution of $578, $509 and $446 and a discretionary match of $469, $414 and $340.

The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by Federal tax law. The annual benefit is a maximum of 6% of the executive compensation in excess of Federal limits. The total liability associated with this plan was $116 and $96 at December 31, 2018 and 2017, respectively. The expense associated with the plan was $20, $20 and $13 for 2018, 2017 and 2016 respectively.

The Company has SERPs for the benefit of certain officers. At December 31, 2018 and 2017, other liabilities include $1,845 and $1,594 accrued under the Plans. Compensation expense includes approximately $335, $314, and $254 relating to these SERPs for the years ended December 31, 2018, 2017 and 2016, respectively.

Under the Employees’ Pension Plan, currently under curtailment, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company.

Information related to the Employees’ Pension Plan is as follows:



	Pension Benefits
December 31	2018		2017
Change in benefit obligation:
Benefit obligation, beginning	$	16,935	$	16,703
Interest cost		623		650
Change in experience gain		135		(13)
Change in actuarial assumptions loss (gain)		(546)		395
Benefits paid		(809)		(800)
Benefit obligation, ending		16,338		16,935
Change in plan assets:
Fair value of plan assets, beginning		13,264		12,644
Actual return on plan assets		(236)		1,420
Employer contributions		2,700
Benefits paid		(809)		(800)
Fair value of plan assets, ending		14,919		13,264
Funded status at end of year	$	(1,419)	$	(3,671)

The Society of Actuaries released new mortality tables in 2018 and 2017 which the Company utilized in its pension plan remeasurements at December 31, 2018 and 2017. The change in mortality assumption resulted in a decrease to the benefit obligation of $546 in 2018 and an increase of $395 in 2017.

Amounts recognized in the consolidated balance sheets are as follows:



	Pension Benefits
December 31	2018		2017

Liabilities	$	1,419	$	3,671
Amounts recognized in the accumulated other comprehensive loss consist of:
Net actuarial gain		(7,218)		(6,628)
Deferred taxes		1,516		1,392

Net amount recognized	$	(5,702)	$	(5,236)

The accumulated benefit obligation for the defined benefit pension plan was $16,338 and $16,935 at December 31, 2018 and 2017, respectively.

Components of net periodic pension income and other amounts recognized in other comprehensive loss are as follows:


	Pension Benefits
Years Ended December 31,	2018		2017		2016
Net periodic pension income:
Interest cost	$	623	$	650	$	665
Expected return on plan assets		(960)		(915)		(893)
Amortization of unrecognized net loss		194		195		209
Net periodic pension income:		(143)		(70)		(19)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)		(590)		318		917
Deferred tax		124		(67)		(321)
Total recognized in other comprehensive loss		(466)		251		596
Total recognized in net period pension cost and other comprehensive loss	$	(609)	$	181	$	577

The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $223.

Weighted-average assumptions used to determine benefit obligations and related expenses were as follows:



	Pension Benefits
December 31,	2018		2017		2016
Discount rate:
Obligation	3.75	%	4.00	%	4.00	%
Expense	4.00		3.75		4.00
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%

The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets.

The Company’s pension plan weighted-average asset allocations at December 31, 2018 and 2017, by asset category are as follows:


December 31,	2018		2017
Asset Category:
Cash and cash equivalents	5.0	%	4.1	%
Equity securities	56.2		57.4
Corporate bonds	23.6		27.6
U.S. Government securities	15.2		10.9
	100.0	%	100.0	%

Fair value measurement of pension plan assets at December 31, 2018 and 2017 is as follows:


			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Observable
			Assets		Inputs		Inputs
December 31, 2018	Total		(Level 1)		(Level 2)		(Level 3)
Cash	$	743	$	743			$
Equity securities:
U.S. large cap		7,687		7,687
International		694		694
Fixed income securities:
U.S. Treasuries		192			$	192
U.S. Government agencies		2,085				2,085
Corporate bonds		3,518				3,518
Total	$	14,919	$	9,124	$	5,795	$


			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Observable
			Assets		Inputs		Inputs
December 31, 2017	Total		(Level 1)		(Level 2)		(Level 3)
Cash	$	539	$	539			$
Equity securities:
U.S. large cap		7,269		7,269
International		350		350
Fixed income securities:
U.S. Treasuries		198			$	198
U.S. Government agencies		1,247				1,247
Corporate bonds		3,661				3,661
Total	$	13,264	$	8,158	$	5,106	$

The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is Large-Cap Core with a value bias. We invest in individual high-grade common stocks that are selected from our approved list; (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. Government Agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10%; (ii) fixed income 40% ; and (iii) equities 50%.

There is no Company stock included in equity securities at December 31, 2018 or 2017. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2019.

The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter:


	Pension Benefits
2019	$	843
2020		857
2021		858
2022		896
2023		912
Thereafter		5,028