EMPLOYEE AND DIRECTOR BENEFIT PLANS

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

EMPLOYEE AND DIRECTOR BENEFIT PLANS

EMPLOYEE AND DIRECTOR BENEFIT PLANS

The Company sponsors two deferred compensation plans, one for certain key management employees and another for directors. Under the management plan, which was amended in 2016, employees designated by the Board of Directors may elect to defer compensation and the Company may at its discretion make nonelective contributions on behalf of one or more eligible plan participants. Upon retirement, termination of employment or at their election, the employee shall become entitled to receive the deferred amounts plus earnings thereon. The liability for the cumulative employee contributions and earnings thereon at December 31, 2018 and 2017 totaled approximately $527,000 and $152,000, respectively, and is included in other liabilities on the consolidated balance sheets. The Company made nonelective contributions totaling $175,000 and $700,000 during 2018 and 2017, respectively, to selected recipients, to vest and be expensed ratably over four or five years from the date of grant.

Under the director plan, participating directors may defer up to 100% of their Board compensation towards the purchase of Company common stock at market prices on a quarterly basis that is held in a Rabbi Trust and distributed when each such participating director ends his or her board service. During 2018 and 2017, the director plan purchased 3,889 and 4,427 shares of Company common stock valued at approximately $213,000 and $229,000, respectively. Common stock valued at approximately $32,000 (and representing 600 shares) and $473,000 (and representing 9,900 shares) was distributed to past directors during 2018 and 2017, respectively. The common stock outstanding and the related director deferred compensation liability are offsetting components of the Company’s equity in the amount of $831,000 at December 31, 2018 and $636,000 at December 31, 2017 representing 26,070 shares and 22,853 shares, respectively.

The Company sponsors a 401(k) savings plan under which eligible employees may choose to save up to 100% of salary compensation on either a pre-tax or after-tax basis, subject to certain IRS limits. Under the plan, the Company matches 100% of participating employee contributions up to 6% of the participant’s gross compensation. The Company contribution vests over five years. The Company can make additional annual discretionary profit sharing contributions, as determined by the Board of Directors. During 2018, 2017 and 2016, the Company’s 401(k) expense was approximately $1.8 million, $2.0 million (including a $0.5 million profit sharing contribution), and $1.2 million, respectively. During 2016, the plan was amended and participants can no longer elect to buy Company common stock within their 401(k) portfolio.