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Retirement Plans
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Retirement Plans
Retirement Plans

The Company has a Supplemental Executive Retirement Plan (“SERP”) covering certain members of management. The net periodic SERP pension cost was approximately $458,000 in 2016 and $221,000 in 2015. The unfunded benefit obligation, which was included in other liabilities, was approximately $4,029,000 at December 31, 2016 and $3,571,000 at December 31, 2015.

The benefit obligation at December 31, 2016 and December 31, 2015 was calculated as follows:
 
2016
 
2015
 
(Amounts in thousands)
Benefit obligation, January 1
$
3,571

 
$
3,350

Service cost
(216
)
 
(86
)
Interest cost
199

 
214

Loss
475

 
93

Benefit obligation, December 31
$
4,029

 
$
3,571



The net periodic pension cost for 2016 and 2015 was calculated as follows:
 
2016
 
2015
 
(Amounts in thousands)
Service cost
$
(216
)
 
$
(86
)
Interest cost
199

 
214

Loss
475

 
93

 
$
458

 
$
221



The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.5% for both 2016 and 2015. Annual benefit payments are estimated at $0 for 2016, $136,149 for 2017, $336,437 for 2018, $368,506 for 2019, and $5,821,440 from 2020 through 2031.

The Company has a 401(k) Plan covering substantially all employees. Under the Plan, the Company is required to contribute 3% of all qualifying employees’ eligible salary to the Plan. The Plan expense in 2016 was $132,000 and $138,000 in 2015.