Note 10 — Retirement Plans

The Company and the Bank provide certain retirement benefits to their employees in the form of a non-contributory defined benefit pension plan and an employees’ savings plan. The non-contributory defined benefit pension plan covers all employees hired on or before December 31, 2005, who have attained age 21, and who have completed a year of eligible service. Employees hired on or after January 1, 2006 are not eligible to participate in the non-contributory defined benefit pension plan, but are eligible to participate in the employees’ savings plan. On this date, a new benefit formula applies only to participants who have not attained age 45 or who do not have five years of service.

Effective July 1, 2009, the Company suspended the accrual of benefits for pension plan participants under the non-contributory defined benefit plan. The pension plan remained suspended as of September 30, 2016.

The components of net periodic pension expense recognized are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest cost	$	(283)	$	(254)	$	(849)	$	(762)
Expected return on plan assets		534		517		1,602		1,551
Recognized net actuarial loss		(204)		(225)		(612)		(674)
Net periodic pension benefit	$	47	$	38	$	141	$	115

The Company did not contribute to the pension plan for the three and nine months ended September 30, 2016, and does not expect to make any additional contributions during the remainder of 2016. The Company reserves the right to contribute between the minimum required and maximum deductible amounts as determined under applicable federal laws.

Under the provisions of Internal Revenue Code Section 401(k), electing employees are eligible to participate in the employees’ savings plan after attaining age 21. Plan participants elect to contribute portions of their annual base compensation as a before tax contribution. Employer contributions may be made from current or accumulated net profits. Participants may elect to contribute 1% to 50% of annual base compensation as a before tax contribution. Employees participating in the plan receive a 100% matching of their 401(k) plan contribution, up to 5% of their salary. Effective January 1, 2015, employees were eligible for an additional 1% discretionary matching contribution contingent upon achievement of the Company’s 2015 financial goals which was paid in the first quarter of 2016. The Company is offering the additional 1% discretionary matching contribution again in 2016 upon achievement of the Company’s 2016 financial goals. The Company expensed $1.7 million and $1.6 million for the 401(k) plan during the three months ended September 30, 2016 and 2015, respectively. The Company expensed $4.5 million and $4.2 million for the 401(k) plan during the nine months ended September 30, 2016 and 2015, respectively.

Employees can enter the savings plan on or after the first day of each month. The employee may enter into a salary deferral agreement at any time to select an alternative deferral amount or to elect not to defer in the plan. If the employee does not elect an investment allocation, the plan administrator will select a retirement-based portfolio according to the employee’s number of years until normal retirement age. The plan’s investment valuations are generally provided on a daily basis.