Note 9 - Benefit Plans

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

Note

9.

BENEFIT PLANS

The Bank has a defined contribution profit sharing plan (“Profit Sharing Plan”) which includes the provision under section

401

(k) of the Internal Revenue Code (

“401

(k)”) and covers all eligible employees. The Bank

’s contribution to the plan is determined at management’s discretion at the end of each year and funded. The

401

(k) feature of the plan permits employees to make voluntary salary deferrals, either pre-tax or Roth, up to the dollar limit prescribed by law. FNCB

may

make discretionary matching contributions equal to a uniform percentage of employee salary deferrals. Discretionary matching contributions are determined each year by management and approved by the Board of Directors. There were

no

discretionary annual contributions made to the profit sharing plan in

2019

 and 

2018

. Discretionary matching contributions under the

401

(k) feature of the plan totaled

$305

 thousand in

2019

 and

$298

 thousand in

2018.

The Bank has an unfunded non-qualified deferred compensation plan covering all eligible Bank officers and directors as defined by the plan. This plan permits eligible participants to elect to defer a portion of their compensation. Elective deferred compensation and accrued earnings, included in other liabilities in the accompanying consolidated statements of financial condition, aggregated

$2.0

 million at

December 31,

2019

 and

$3.2

 million at

December 31, 

2018.

The Bank has a Supplemental Executive Retirement Plan (“SERP”) for a select group of management or highly compensated employees within the meaning of Sections

201

(

2

),

301

(a)(

3

) and

401

(a)(

1

) of The Employee Retirement Income Security Act of

1974.

The general provisions of the SERP provide for annual year-end contributions, performance contingent contributions and discretionary contributions. The SERP contributions are unfunded for Federal tax purposes and constitute an unsecured promise by the Bank to pay benefits in the future and are included in other liabilities in the accompanying consolidated statements of financial condition. Participants in the SERP have the status of general unsecured creditors of the Bank. SERP contributions totaled

$173

 thousand in

2019

 and 

$108

 thousand in

2018

. The total liability associated with the SERP was

$6

57

 thousandat

December 31, 2019 

and

$557

 thousand at

December 31, 2018.