Note 11 - Retirement Plans

12 Months Ended

Dec. 31, 2014

Retirement Plan [Member]

Note 11 - Retirement Plans [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

11.Retirement Plans

The Company maintains a salary savings plan that covers substantially all of its employees. The Company matches voluntary tax deferred employee contributions at 50% of eligible deferrals up to a maximum of 6% of the participants’ compensation. The Company may, at the discretion of its Board, contribute an additional amount based upon a percentage of covered employees’ salaries. The Company did not make a discretionary contribution during 2014, 2013, or 2012. Discretionary contributions are allocated among participants in the ratio that each participant’s compensation bears to all participants’ compensation. Eligible employees are presented with various investment alternatives related to the salary savings plan. Those alternatives include various stock and bond mutual funds ranging from traditional growth funds to more stable income funds as well as an option to invest in bank certificates of deposits. Company shares are not an available investment alternative in the salary savings plan. The total retirement plan expense for 2014, 2013, and 2012 was $483 thousand, $528 thousand, and $485 thousand, respectively.

In connection with its acquisition of Citizens Northern, the Company acquired nonqualified supplemental retirement plans for certain key employees. Benefits provided under these plans are unfunded, and payments to plan participants are made by the Company.

The following schedules set forth a reconciliation of the changes in the supplemental retirement plans’ benefit obligation and funded status for the years ended December 31, 2014 and 2013.

(In thousands)	2014			2013
Change in Benefit Obligation
Obligation at beginning of year	$	774		$	741
Service cost		12			28
Interest cost		22			29
Actuarial (gain) loss		(189	)		3
Benefit payments		(36	)		(27	)
Obligation at end of year	$	583		$	774

The following table provides disclosure of the net periodic benefit cost as of December 31 for the years indicated.

(In thousands)	2014			2013
Service cost	$	12		$	28
Interest cost		22			29
Recognized net actuarial (gain) loss		(4	)		12
Net periodic benefit cost	$	30		$	69
Major assumptions:
Discount rate used to determine net period benefit cost		4.06	%		4.03	%
Discount rate used to determine benefit obligation at year end		3.22			4.06

The following table presents estimated future benefit payments in the period indicated.

(In thousands)	Supplemental Retirement Plan
2015	$	36
2016		36
2017		36
2018		36
2019		36
2020-2024		312
Total	$	492

Amounts recognized in accumulated other comprehensive income as of December 31, 2014 and 2013 are as follows:

(In thousands)	2014			2013
Unrecognized net actuarial (gain) loss	$	(37	)	$	148
Total	$	(37	)	$	148

The estimated cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year for the supplemental retirement plan is zero.

Postretirement Medical Benefits [Member]

Note 11 - Retirement Plans [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

13. Postretirement Medical Benefits

The Company provides lifetime medical and dental benefits upon retirement for certain employees meeting the eligibility requirements as of December 31, 1989 (“Plan 1”). Additional participants are not eligible to be included in Plan 1 unless they met the requirements on this date. There were 38 of such participants in Plan 1 at year-end 2014. During 2003, the Company implemented an additional postretirement health insurance program (“Plan 2”). Under Plan 2, any employee meeting the service requirement of 20 years of full time service to the Company and is at least age 55 years of age upon retirement is eligible to continue their health insurance coverage. Under both plans, retirees not yet eligible for Medicare have coverage identical to the coverage offered to active employees. Under both plans, Medicare-eligible retirees are provided with a Medicare Advantage plan. The Company pays 100% of the cost of Plan 1. The Company and the retirees each pay 50% of the cost under Plan 2. Both plans are unfunded.

The following schedules set forth a reconciliation of the changes to the benefit obligation and funded status of the plans for the years ended December 31, 2014 and 2013.

(In thousands)	2014			2013
Change in Benefit Obligation
Obligation at beginning of year	$	12,588		$	15,935
Service cost		482			630
Interest cost		569			551
Actuarial loss (gain)		1,422			(4,277	)
Participant contributions		115			97
Benefit payments		(384	)		(348	)
Obligation at end of year	$	14,792		$	12,588

The following table provides disclosure of the net periodic benefit cost as of December 31 for the years indicated.

(In thousands)	2014			2013
Service cost	$	482		$	630
Interest cost		569			551
Recognized prior service cost		207			257
Amortization of net actuarial gain		(63	)		-
Net periodic benefit cost	$	1,195		$	1,438
Major assumptions:
Discount rate used to determine net periodic benefit cost		4.93	%		4.03	%
Discount rate used to determine benefit obligation as of year end		3.92			4.93
Retiree participation rate (Plan 1)		100.00			100.00
Retiree participation rate (Plan 2)		72.00			72.00

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. For measurement purposes, the rate of increase in pre-Medicare medical care claims costs was 6.5%, 6.0%, and 5.5% for 2015, 2016, and 2017, respectively, then grading down by .25% annually to 4.75% for 2020 and thereafter. For dental claims cost, it was 5% for 2015 and thereafter. A 1% change in the assumed health care cost trend rates would have the following incremental effects:

(In thousands)	1% Increase		1% Decrease
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost	$	299	$	(225	)
Effect on accumulated postretirement benefit obligation		3,058		(2,391	)

The following table presents estimated future benefit payments in the period indicated.

(In thousands)	Postretirement Medical Benefits
2015	$	355
2016		373
2017		414
2018		448
2019		466
2020-2024		2,965
Total	$	5,021

Amounts recognized in accumulated other comprehensive income as of December 31, 2014 and 2013 are as follows:

(In thousands)	2014		2013
Unrecognized net actuarial loss (gain)	$	295	$	(1,190	)
Unrecognized prior service cost		175		383
Total	$	470	$	(807	)

The estimated costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are as follows:

(In thousands)	Postretirement Medical Benefits
Unrecognized prior service cost	$	51
Unrecognized net actuarial loss		42
Total	$	93