Deferred Compensation

12 Months Ended

Dec. 31, 2018

NOTE 16 — Deferred Compensation

The Bank has obligations to certain retired and active employees and directors under deferred compensation plans. A liability is recorded for the value of the deferred compensation obligations amounting to $2,429 and $2,243 at December 31, 2018 and 2017, respectively. The amounts deferred under the plans are invested in various cash equivalent, bond, and equity security accounts that are maintained in a Rabbi Trust. As of December 31, 2018, and 2017, the balances in the Rabbi Trust accounts was included with other assets and totaled $2,429 and $2,243, respectively.

The Bank has entered into various salary continuation agreements with key officers. The agreements provide for the payment of specified amounts upon each employee’s retirement or death. The liability outstanding under the agreements was $438 and $538 at December 31, 2018 and 2017, respectively. The amount charged to operations was $48 and $48 for the years ended December 31, 2018 and 2017, respectively.

The Bank is the beneficiary of insurance policies on the lives of certain key employees. These policies had a cash value of $13,400 at and $13,732 at December 31, 2018 and 2017, respectively. During the year ended December 31, 2018, the Bank received proceeds from life insurance of $856, and recorded a gain on life insurance benefit received in the amount of $120. There were no proceeds from life insurance or gain on life insurance benefit received during the year ended December 31, 2017.