Note 13 - Deferred Compensation Plans

12 Months Ended

Dec. 31, 2017

Compensation and Employee Benefit Plans [Text Block]

13.	DEFERRED COMPENSATION PLANS

The Bank has entered into supplemental retirement compensation benefits agreements with certain directors and executive officers. The measurement of the liability under these agreements includes estimates involving life expectancy, length of time before retirem

ent and the expected returns on the bank-owned life insurance policies used to fund those agreements. Should these estimates prove to be materially wrong, the cost of these agreements could change accordingly. The related deferred compensation obligation to these directors and executive officers included in other liabilities was

$3.5

million as of both

December

31,

2017

and

2016.

Non-employee directors

may

elect to defer payment of all or any portion of their Bancshares and Bank director fees

under Bancshares

’

Non-Employee Directors’ Deferred Compensation Plan (the “Deferral Plan”). The Deferral Plan, which was ratified by Bancshares’ shareholders at the annual meeting held on

May 11, 2004,

permits non-employee directors to invest their directors’ fees and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock.

Neither Bancshares nor the Bank makes any contribution to participants

’ accounts under the Deferral Plan. As of

December 31, 2017

and

2016,

a total of

103,620

and

114,547

shares of Bancshares common stock, respectively, were deferred in connection with the Deferral Plan. All deferred fees, whether in the form of cash or shares of Bancshares common stock, are reflected as compensation expense in the period earned. The Company classifies all deferred directors’ fees allocated to be paid in shares of Bancshares common stock as equity surplus. The Company uses shares of treasury stock to satisfy these obligations when due.