Note 11 - Retirement Plans

12 Months Ended

Dec. 31, 2016

Supplemental Employee Retirement Plan [Member]

Notes to Financial Statements

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

2016,

2015,

or

2014.

Discretionary contributions are allocated among participants in the ratio that each participant’s compensation bears to all participants’ compensation. Eligible employees are presented with numerous 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. Total retirement plan expense for

2016,

2015,

and

2014

was

$563

thousand,

$531

thousand, and

$483

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,

2016

and

2015

.

(In thousands)	2016			2015
Change in Benefit Obligation
Obligation at beginning of year	$	600		$	583
Service cost		19			15
Interest cost		24			19
Actuarial loss		111			19
Benefit payments		(36	)		(36	)
Obligation at end of year	$	718		$	600

The following table provides disclosure of the net periodic benefit cost as of

December

31

for the years indicated

.

(In thousands)	2016			2015
Service cost	$	19		$	15
Interest cost		24			19
Recognized net actuarial loss		5			-
Net periodic benefit cost	$	48		$	34
Major assumptions:
Discount rate used to determine net period benefit cost		3.39	%		3.22	%
Discount rate used to determine benefit obligation at year end		3.31			3.39
Rate of compensation increase		4.00			4.00

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

(In thousands)	Supplemental Retirement Plan
2017	$	36
2018		36
2019		36
2020		71
2021		83
2022-2026		356
Total	$	618

Amounts recognized in accumulated other comprehensive income as of

December

31,

2016

and

2015

are as follows:

(In thousands)	2016		2015
Unrecognized net actuarial loss (gain)	$	87	$	(19	)
Total	$	87	$	(19	)

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

(In thousands)	Supplemental Retirement Plan
Unrecognized net actuarial loss	$	5
Total	$	5