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Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefits Plan

Note 13 – Employee Benefit Plans

401(k) Plan:

The 401(k) plan allows employees to contribute to their individual accounts under the plan amounts up to the IRS maximum. Matching company contributions to the plan are discretionary. Expense for matching company contributions under the plan was $180,000, $168,000, and $140,000 in 2016, 2015, and 2014, respectively.

Employee Stock Ownership Plan:

Through December 31, 2015, employees participated in an Employee Stock Ownership Plan (“ESOP”). ChoiceOne could make discretionary contributions to the ESOP. Shares of ChoiceOne common stock were allocated to participants based on relative compensation earned and compensation expense was recorded when allocated. Dividends on allocated shares increased the participant accounts. Participants became fully vested upon completing six years of qualifying service. Participants received the shares at the end of employment. A participant could require stock received to be repurchased by ChoiceOne at any time. ChoiceOne did not contribute to the ESOP nor was any expense recorded in 2016, 2015, or 2014. Effective January 1, 2016, ChoiceOne terminated the ESOP and transferred shares held by the ESOP to the 401(k) plan and ChoiceOne no longer has a mandatory obligation to repurchase shares from the 401(k) plan.

Shares held by the ESOP as of December 31 were as follows:

(Dollars in thousands)		2016				2015				2014

Shares allocated to participants			—				5,355				5,355
Shares unallocated			—				—				—
Total shares of ChoiceOne stock held by ESOP			—				5,355				5,355

Fair value of allocated shares, subject to repurchase obligation, recorded in other liabilities		$	—			$	127			$	123

Post-retirement Benefits Plan:

ChoiceOne maintains an unfunded post-retirement health care plan, which permits employees (and their dependents) the ability to participate upon retirement from ChoiceOne. ChoiceOne does not pay any portion of the health care premiums charged to its retired participants. A liability has been accrued for the obligation under this plan. ChoiceOne incurred a negative post-retirement benefit expense of $18,000 in 2016, a benefit expense of $2,000 in 2015, and a negative expense of $20,000 in 2014. The post-retirement obligation liability was $148,000 as of December 31, 2016 and $127,000 as of December 31, 2015.

Deferred Compensation Plans:

A deferred director compensation plan covers certain former directors. Under the plan, ChoiceOne pays each former director the amount of director fees deferred plus interest at rates ranging from 5.50% to 5.84% over various periods as elected by each director. The payout periods range from one month to ten years beginning with the individual’s termination of service. A liability has been accrued for the obligation under this plan. ChoiceOne incurred deferred compensation plan expense of $7,000, $12,000, and $12,000 in 2016, 2015, and 2014, respectively. The deferred compensation liability was $138,000 as of December 31, 2016 and $173,000 as of December 31, 2015.

A supplemental executive retirement plan covers four former executive officers. Under the plan, ChoiceOne pays these individuals a specific amount of compensation plus interest at 7.50% over a 15-year period commencing upon early retirement age (as defined in the plan) or normal retirement age (as defined in the plan). A liability has been accrued for the obligation under this plan. The effective interest rate used for the accrual for the retirement liability is based on long-term interest rates. Slightly higher long-term interest rates during 2016 caused a slight decrease in plan expense in 2016 and in 2015. ChoiceOne incurred deferred compensation plan expense of $19,000 in 2016 and $32,000 in 2015 and a negative expense of $42,000 in 2014. Liabilities related to the supplemental executive retirement plan of $558,000 and $618,000 were outstanding as of December 31, 2016 and December 31, 2015, respectively.