EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

The following table sets forth the obligation and funded status as of December 31 (in thousands):

	2016			2015

Change in benefit obligation
Benefit obligation at beginning of year	$	17,809		$	11,777
Benefit obligation acquired as part of FNB acquisition		-			6,377
Service cost		345			352
Interest cost		692			424
Actuarial (Gain) / Loss		439			(456	)
Benefits paid		(682	)		(665	)
Benefit obligation at end of year		18,603			17,809

Change in plan assets
Fair value of plan assets at beginning of year		14,786			11,039
Fair value of plan assets at acquisition		-			4,053
Actual return (loss) on plan assets		864			(41	)
Employer contribution		818			400
Benefits paid		(682	)		(665	)
Fair value of plan assets at end of year		15,786			14,786

Funded status	$	(2,817	)	$	(3,023	)

Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands):

Amounts recognized in accumulated other
comprehensive loss consists of:	2016			2015
Net loss	$	4,263		$	3,919
Prior service cost		(175	)		(222	)
Total	$	4,088		$	3,697

Components of net periodic benefit costs

The components of net periodic benefit costs for the years ended December 31 are as follows (in thousands):

	2016			2015			2014

Service cost	$	345		$	352		$	307
Interest cost		692			424			415
Return on plan assets		(1,034	)		(791	)		(786	)
Net amortization and deferral		219			205			51
Net periodic benefit cost	$	222		$	190		$	(13	)

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost (income)

The weighted-average assumptions used to determine benefit obligations at December 31, 2016 and 2015 is summarized in the following table. The change in the discount rate is the primary driver of the actuarial loss that occurred in 2016 of $439,000.

	2016	2015
Discount rate	3.78%	3.94%
Rate of compensation increase	3.00%	3.00%

The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31:

	2016	2015	2014
Discount rate	3.94%	3.61%	4.30%
Expected long-term return on plan assets	7.00%	7.00%	7.50%
Rate of compensation increase	3.00%	3.00%	3.00%

Fair value of plan assets

The following table sets forth by level, within the fair value hierarchy as defined in footnote 17, the Plan's assets at fair value as of December 31, 2016 and 2015 (in thousands):

2016	Level I		Level II		Level III		Total		Allocation
Assets
Cash and cash equivalents	$	863	$	-	$	-	$	863		5.5	%
Equity securities		5,404		-		-		5,404		34.1	%
Mutual funds and ETF's		5,235		-		-		5,235		33.2	%
Corporate bonds		-		3,641		-		3,641		23.1	%
Municipal bonds				107				107		0.7	%
U.S. Agency securities		-		536		-		536		3.4	%
Total	$	11,502	$	4,284	$	-	$	15,786		100.0	%

2015	Level I		Level II		Level III		Total		Allocation
Assets
Cash and cash equivalents	$	1,704	$	-	$	-	$	1,704		11.5	%
Equity securities		3,821		-		-		3,821		25.8	%
Mutual funds and ETF's		6,085		-		-		6,085		41.3	%
Corporate bonds		-		3,019		-		3,019		20.4	%
Municipal bonds				107				107		0.7	%
U.S. Agency securities		-		50		-		50		0.3	%
Total	$	11,610	$	3,176	$	-	$	14,786		100.0	%

Expected future benefit payments

The Bank expects to contribute $520,000 to its pension plans in 2017. Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands):

2017	$	733
2018		591
2019		1,820
2020		1,549
2021		1,403
2022 - 2026		7,407

Schedule of vesting, awarding and forfeiting of restricted shares

The following table details the vesting, awarding and forfeiting of restricted shares during 2016:

	2016
				Weighted
				Average
	Shares			Market Price
Outstanding, beginning of year		8,269		$	49.98
Granted		4,110			48.13
Forfeited		(90	)		49.26
Increase due to stock dividends		-			-
Vested		(3,818	)		49.95
Outstanding, end of year		8,471		$	49.10