Note 11 - Employee Benefit Plans

The Bank has established a 401(k) profit sharing plan, which allows eligible employees to save at a minimum one percent of eligible compensation on a pre-tax basis, subject to certain Internal Revenue Service limitations. The Bank will match 50% of employee 401(k) contributions up to four percent of total eligible compensation. In addition, the Bank may make a discretionary contribution from time to time. A participant is 100% vested in the participant’s deferral contributions and employer matching contributions. A six-year vesting schedule applies to employer discretionary contributions. Contributions expensed for the 401(k) profit sharing plan for both the employer matching contribution and the discretionary contribution were $972, $877 and $835 thousand for 2017, 2016 and 2015, respectively.

Restricted Stock Awards

The Company has a Long-Term Stock Incentive Plan under which 32,000 shares of restricted stock were issued to 74 employees during 2017, 32,300 shares of restricted stock were issued to 74 employees during 2016 and 32,000 shares of restricted stock were issued to 67 employees during 2015. Under the plan, the shares vest 100% in three years. During the 3 year vesting period, the employees receive dividends or dividend equivalent compensation on the shares. Due to employee termination, there were 1,080, 1,546, and 200 forfeited during 2017, 2016 and 2015, respectively. During 2017, 1 employee retired and received 640 shares from the shares awarded in 2014, 2015 and 2016. During 2016, due to retirement, 4 employees received 2,394 shares from awards granted in 2013, 2014 and 2015. During 2015, 1 employee retired and received 500 shares from awards granted in 2012, 2013, and 2014 and 650 shares were paid to the estate of a deceased employee awarded during the same time periods. During 2017, 24,230 shares awarded in 2014 were 100% vested and 52 employees received the stock. During 2016, 20,050 shares awarded in 2013, were vested 100% and 45 employees received the stock. During 2015, 19,440 shares awarded in 2012, were vested 100% and 45 employees received the stock. Compensation expense applicable to the restricted stock totaled $507, $402 and $314 thousand for the years ending December 31, 2017, 2016 and 2015, respectively.

The following table summarizes the activity of restricted stock awards adjusted for a 2-for-1 stock split on September 20, 2017 as of December 31:


	Year Ended December 31,
	2017					2016					2015
	Number of Shares			Weighted average fair value per award		Number of Shares			Weighted average fair value per award		Number of Shares			Weighted average fair value per award
Beginning of period		86,300			14.10		77,990			12.46		66,780			11.39
Granted		32,000			27.79		32,300			16.01		32,000			13.18
Vested		(24,870	)		28.60		(22,444	)		15.86		(20,590	)		13.17
Forfeited		(1,080	)		37.06		(1,546	)		15.77		(200	)		13.04

Nonvested, end of period		92,350			19.17		86,300			14.10		77,990			12.46

As of December 31, 2017, there was $1.1 million of unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan. Expense for restricted stock awards of $507 thousand, $402 thousand, and $314 thousand was recorded for the years ended December 31, 2017, 2016, and 2015, respectively.