Note 14 - Incentive Compensation Plans

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Compensation Related Costs, General [Text Block]

14.

Incentive Compensation Plans

Under a Board of Directors approved incentive compensation plan, bonuses are payable quarterly in an amount

not

to exceed

18%

of the Company’s Income from Operations for any period, subject to the Company achieving a minimum quarterly Income from Operations of at least

$500,000.

For fiscal years

2018

and

2017,

the Board determined that the aggregate amount of incentive compensation available under the Plan shall be equal to

18%

of the Company’s Income from Operations. The bonus pool is allocated to executives according to a specified formula, with a portion allocated to a middle management group determined by the Executive Committee of the Board of Directors. The Company expensed a total of $-

0

- and

$109,500

to the participants of the bonus pool for

2018

and

2017,

respectively.

The Company sponsors a Supplemental Executive Retirement Plan (SERP) to allow certain executives to defer a portion of their annual salary and bonus into a grantor trust. A grantor trust was established to hold the assets of the SERP. The Company funds the grantor trust by paying the amount deferred by the participant into the trust at the time of deferral. Investment earnings and losses accrue to the benefit or detriment of the participants. The SERP also provides for a discretionary matching contribution by the Company

not

to exceed

100%

of the participant’s annual contribution. In

2018

and

2017,

the Company did

not

provide a match. The participants fully vest in the deferred compensation

three

years from the date they enter the SERP. The participants are

not

eligible to receive distribution under the SERP until retirement, death, or disability of the participant. At

December 31, 2018

and

2017,

SERP assets were

$339,000

and

$330,000,

respectively, and are included in “Other Assets” in the accompanying consolidated balance sheets. At

December 31, 2018

and

2017,

SERP liabilities were

$341,000

and

$332,000,

respectively, and are included in “Other Non-Current Liabilities” in the accompanying consolidated balance sheets. The changes in the balances of SERP assets and SERP liabilities during

2018

and

2017

were due to net realized and unrealized investment gains/losses incurred by the plan.