NOTE 14, Pension Plan and 401(k) Plan

PENSION PLAN

The Company provides pension benefits for eligible participants through a non-contributory defined-benefit pension plan. The plan was frozen effective September 30, 2006; therefore no additional participants have been or will be added to the plan since such date.

Information pertaining to the activity in the plan, using a measurement date of December 31, is as follows:

	Years ended December 31,
	2015			2014
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	7,104		$	5,656
Service cost		0			0
Interest cost		260			278
Benefits paid		(294	)		(298	)
Actuarial (gain) loss		(31	)		1,468
Benefit obligation at end of year	$	7,039		$	7,104

Change in plan assets
Fair value of plan assets at beginning of year	$	5,268		$	5,322
Actual return on plan assets		(283	)		244
Employer contribution		1,000			0
Benefits paid		(294	)		(298	)
Fair value of plan assets at end of year	$	5,691		$	5,268

Funded Status at end of year	$	(1,348	)	$	(1,836	)

Amounts recognized in the consolidated balance sheets at December 31,	2015			2014
Accrued pension liability	$	(1,348	)	$	(1,836	)

Amounts recognized in other comprehensive income (loss)
Loss	$	3,918		$	3,681
Deferred taxes		(1,332	)		(1,252	)
Net loss	$	2,586		$	2,429
Accumulated benefit obligation	$	7,039		$	7,104

Assumptions used to determine the benefit obligations at December 31,	2015			2014
Discount rate		4.03%			3.73%

	During the years ending December 31,
Weighted-average assumptions used to determine net periodic pension cost	2015		2014
Discount rate		3.73%		4.90%
Expected long-term rate of return on plan assets		7.00%		7.00%

	Years ended December 31,
Components of net periodic pension cost	2015				2014
	(in thousands)
Interest cost		$	260		$	278
Expected return on plan assets			(376	)		(362	)
Amortization of unrecognized loss			390			251
Net periodic pension cost		$	274		$	167

Components of other amounts recognized in other comprehensive income (loss)
Net actuarial (gain) loss	$	627		$	1,587
Settlement loss		0			0
Amortization of actuarial loss		(390	)		(251	)
Total recognized in other comprehensive income (loss)	$	237		$	1,336

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	511		$	1,503

The estimated net loss for the pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year is $560 thousand.

The overall expected long-term rate of return on plan assets was determined based on the current asset allocation and the related volatility of those investments.

The Company's overall investment strategy is growth with income. The emphasis of the objective is on both capital appreciation and income. The portfolio contains a blend of securities expected to grow in value over the long term and those expected to produce income. Moderate market value volatility is expected.

The pension plan invests primarily in large and mid-cap equities and government and corporate bonds, with the following target allocations: equities 55 percent, fixed income 40 percent and cash 5 percent. The pension plan has small investments in precious metals and emerging markets equity mutual funds, each of which represents less than 1 percent of the total account value.

Fair value is discussed in detail in Note 16. The fair value of the Company's pension plan assets by asset category are as follows:

	Assets at Fair Value as of December 31, 2015
	(in thousands)
Asset Category	Level 1		Level 2		Level 3		Total
Money market funds	$	654	$	0	$	0	$	654
Mutual funds		74		0		0		74
Common stock		2,766		0		0		2,766
Corporate bonds		0		2,133		0		2,133
Partnerships		0		64		0		64
Total assets at fair value	$	3,494	$	2,197	$	0	$	5,691

	Assets at Fair Value as of December 31, 2014
	(in thousands)
Asset Category	Level 1			Level 2			Level 3			Total
Money market funds		$	310		$	0		$	0		$	310
Mutual funds			73			0			0			73
Common stock			2,847			0			0			2,847
Corporate bonds			0			2,038			0			2,038
Total assets at fair value		$	3,230		$	2,038		$	0		$	5,268

The Company contributed $1.0 million to the pension plan in 2015, and made no contributions in 2014. Management has not determined at this time the amount, if any, it will contribute to the plan for the year ending December 31, 2016.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):

2016	$	219
2017		259
2018		281
2019		294
2020		352
Thereafter		2,051
Total	$	3,456

401(K) PLAN

The Company has a 401(k) Plan in which substantially all employees are eligible to participate. Employees may contribute to the plan subject to certain limits based on federal tax laws. The Company makes matching contributions equal to 100 percent of the first 4 percent of an employee's compensation contributed to the plan. Matching contributions vest to the employee immediately. The Company may make profit sharing contributions to the plan as determined by the Board of Directors. Profit sharing contributions vest to the employee over a six-year period. For the years ended December 31, 2015 and 2014, expense attributable to the plan amounted to $519 thousand and $527 thousand, respectively.