NOTE 14, Pension Plan and 401(k) Plan

PENSION PLAN

The Company previously provided 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.

On November 23, 2016 the Company's Board of Directors voted to terminate the pension plan, effective January 31, 2017. The Company completed the transfer of all liabilities and administrative responsibilities under the Plan in the fourth quarter of 2017 which resulted in a nonrecurring pretax termination charge of $3.4 million in 2017.

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

	Years ended December 31,
	2017			2016
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	7,062		$	7,039
Service cost		-			-
Interest cost		268			279
Benefits paid		(6,977	)		(461	)
Actuarial (gain) loss		(353	)		205
Benefit obligation at end of year	$	-		$	7,062

Change in plan assets
Fair value of plan assets at beginning of year	$	5,499		$	5,691
Actual return on plan assets		(76	)		269
Employer contribution		1,554			-
Benefits paid		(6,977	)		(461	)
Fair value of plan assets at end of year	$	-		$	5,499

Funded Status at end of year	$	-		$	(1,563	)

	December 31,
	2017		2016
	(in thousands)
Amounts recognized in the consolidated balance sheets
Accrued pension liability	$	-	$	(1,563	)

Amounts recognized in accumulated other comprehensive (income) loss
Loss	$	-	$	3,741
Deferred taxes		-		(1,272	)
Net loss	$	-	$	2,469

Accumulated benefit obligation	$	-	$	7,062

Assumptions used to determine the benefit obligations at December 31,		2017				2016
Discount rate			0.00	%			3.86	%

	During the years ending December 31,
Weighted-average assumptions used to determine net periodic pension cost	2017			2016
Discount rate		3.86	%		4.03	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%

	Years ended December 31,
	2017			2016			2015
Components of net periodic pension cost	(in thousands)
Interest cost	$	268		$	279		$	260
Expected return on plan assets		(376	)		(391	)		(376	)
Amortization of unrecognized loss		490			504			390
Preliminary net periodic pension cost		382			392			274
Settlement/curtailment expense		3,350			-			-
Net periodic pension cost	$	3,732		$	392		$	274

Components of other amounts recognized in other comprehensive income (loss)
Net actuarial (gain) loss	$	99		$	327		$	627
Settlement loss		(3,350	)		-
Amortization of actuarial loss		(490	)		(504	)		(390	)
Total recognized in other comprehensive income (loss)	$	(3,741	)	$	(177	)	$	237

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(9	)	$	215		$	511

Fair value is discussed in detail in Note 16. Upon termination of the Company's pension plan in the fourth quarter of 2017 all assets under the plan were liquidated. The fair value of the pension plan assets by asset category were as follows at December 31, 2016:

Assets at Fair Value as of December 31, 2016
Asset Category	Level 1		Level 2		Level 3		Total
	(in thousands)
Money market funds	$	2,839	$	-	$	-	$	2,839
Mutual funds		-		-		-		-
Common stock		1,129		-		-		1,129
Corporate bonds		-		1,472		-		1,472
Partnerships		-		59		-		59
Total assets at fair value	$	3,968	$	1,531	$	-	$	5,499

The Company made no contributions to the pension plan in 2016 or in 2017, until the plan was terminated.

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, 2017, 2016, and 2015, expense attributable to the plan amounted to $536 thousand, $523 thousand, and $519 thousand, respectively.