The Company has a defined benefit SERP for certain executives, in which the contribution is solely funded by the Company. For the years ended December 31, 2018, 2017 and 2016, SERP expenses were $256,000, $256,000 and $311,000, respectively.

The following table summarizes the projected benefit obligations, plan assets, funded status and rate assumptions associated with the SERP based upon actuarial valuations, for the years ended December 31, 2018, 2017 and 2016.

Changes in benefit obligations	2018			2017			2016
Benefit obligation, beginning	$	2,485		$	2,531		$	2,372
Service cost		171			164			213
Interest cost		84			92			97
Actuarial gain		(18	)		(141	)		(77	)
Benefits paid		(148	)		(161	)		(74	)
Benefit obligation, ending	$	2,574		$	2,485		$	2,531
Funded status at December 31,	$	(2,574	)	$	(2,485	)	$	(2,531	)

Changes in Plan Assets
Fair value of plan assets, beginning	$	-		$	-		$	-
Employer contributions		148			161			74
Benefits paid		(148	)		(161	)		(74	)
Fair value of plan assets, ending	$	-		$	-		$	-

Amounts recognized on the Balance Sheets	2018			2017			2016
Other assets, deferred income tax benefit	$	513		$	542		$	861
Other liabilities		2,574			2,485			2,531
Accumulated other comprehensive income (loss)	140			125				11

Amounts recognized in accumulated other comprehensive income (loss)
Net gain (loss)	$	155		$	137		$	(4	)
Prior service cost	22			21			20
Net obligation at transition		-			-			-
Deferred tax expense		(37	)		(33	)		(5	)
Amount recognized	$	140		$	125		$	11

Components of net periodic benefit cost	2018		2017		2016
Service cost	$	171	$	164	$	213
Interest cost	84		92		97
Amortization of prior service cost		1		1		1
Net periodic benefit cost	$	256	$	257	$	311

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss)	2018		2017		2016
Net gain	$	18	$	140	$	77
Amortization of prior service cost		1		1		1
Total recognized		19		141		78
Less: Income tax effect		4		27		26
Net amount recognized in other comprehensive income (loss)	$	15	$	114	$	52

Total recognized, in thousands, in net periodic benefit costs and other comprehensive (income) loss before income tax is as follows.

The Company has also established supplemental retirement plans for certain additional executives. The expense for these plans was $35,600, $33,000 and $7,000 during 2018, 2017 and 2016, respectively.

The Company has a defined contribution retirement plan under Internal Revenue Code of 1986 (“Code”) Section 401(k) covering all employees who are at least 18 years of age and worked more than 20 hours per week. Under the plan, a participant may contribute an amount up to 100% of their covered compensation for the year, not to exceed the dollar limit set by law (Code Section 402(g)). The Company will make an annual matching contribution, equal to 100% on the first 6% of compensation deferred for a maximum match of 6% of compensation. The Company makes an additional safe harbor contribution equal to 3% of compensation to all eligible participants. The Company’s 401(k) expenses for the years ended December 31, 2018, 2017 and 2016 were $688,000, $685,000 and $685,000, respectively.

The Company maintains a Director Deferred Compensation Plan. This plan provides that any nonemployee director of the Company may elect to defer receipt of all or any portion of his or her compensation as a director. A participating director may elect to have amounts held in a deferred cash account, which is credited on a quarterly basis with interest equal to the highest rate offered by the Bank at the end of the preceding quarter. Alternatively, a participant may elect to have a deferred stock account in which deferred amounts are treated as if invested in the Company’s common stock at the fair market value on the date of deferral. The value of a stock account will change based upon the fair market value of an equivalent number of shares of common stock. In addition, the deferred amounts deemed invested in common stock will be credited with dividends on an equivalent number of shares. Amounts considered invested in the Company’s common stock are paid, at the election of the director, either in cash or in whole shares of the common stock and cash in lieu of fractional shares. Directors may elect to receive amounts contributed to their respective accounts in one or up to five installments. There were no directors participating in the Director Deferred Compensation Plan in 2018, 2017 and 2016.

The Company has a nonqualified deferred compensation program for a former key employee’s retirement, in which the contribution expense is solely funded by the Company. The retirement benefit to be provided is variable based upon the performance of underlying life insurance policy assets. Deferred compensation expense amounted to $44,000, $22,000 and $16,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Concurrent with the establishment of the deferred compensation program, the Company purchased life insurance policies on this employee with the Company named as owner and beneficiary. These life insurance policies are intended to be utilized as a source of funding the deferred compensation program. The Company has recorded, on the consolidated balance sheets, $1.4 million and $1.3 million in cash surrender value for these policies and $103,000 and $93,000 in accrued liabilities as of December 31, 2018 and 2017. The Company has recorded on the consolidated statements of operations, noninterest income of $28,000, $28,000 and $25,000 for the years ended December 31, 2018, 2017 and 2016, respectively.