Note 11 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

11.

EMPLOYEE BENEFIT PLANS

First South Bank has adopted the First South Bank Employees’ Savings & Profit Sharing Plan and Trust (the “Savings Plan”) to help its employees save for retirement. During the years ended

December

31,

2016,

2015

and

2014,

employees

may

contribute from

1

%

to

100

%

of compensation, subject to an annual maximum as determined by the Internal Revenue Code. This plan is designed to qualify as a “Safe Harbor

401(k)

Plan”. As a Safe Harbor

401(k)

plan matching contributions are always fully vested for the employees. As of

January

1,

2013,

the Bank matches

100%

of employees’ contributions up to

3%

of their plan compensation, and an additional

50%

of employees’ contributions between

3%

and

5%

of their plan compensation. In addition, the Savings Plan allows the Company to make a discretionary match and /or a discretionary profit sharing contribution to employee accounts. Expenses related to the Bank's contributions to this plan for the years ended

December

31,

2016,

2015

and

2014

were

$406,842,

$369,969

and

$295,683,

respectively, and are included in the compensation and fringe benefits line item in the Consolidated Statements of Operations.

Directors and certain officers participate in deferred compensation plans. These plans provide for fixed payments beginning at retirement, and are earned over service periods of up to

ten

years, and include provisions for deferral of current payments. The expense related to these plans during the years ended

December

31,

2016,

2015

and

2014

was

$225,786,

$175,232

and

$165,222,

respectively, and are included in the compensation and fringe benefits line item in the Consolidated Statements of Operations. The plans include provisions for forfeitures of unvested portions of payments, and vesting in the event of death or disability. The total liability under this plan was

$1,338,306

and

$1,282,087

as of

December

31,

2016

and

2015,

respectively, and is included in the other liabilities line item in the Consolidated Statements of Financial Condition.