Note 14 - Benefit Plans

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

14. Benefit Plans

Defined Contribution Plan

The Company has a defined contribution plan pursuant to the provision of

401

(k) of the Internal Revenue Code. The Plan covers all full-time employees who meet age and service requirements. The plan provides for elective employee contributions with a matching contribution from the Company limited to

4%

of total salary. The total expense charged to Republic, and included in salaries and employee benefits relating to the plan, was

$1.2

million in

2019,

$1.1

million in

2018,

and

$927,000

in

2017.

Directors’ and Officers’ Plans

The Company has agreements that provide for an annuity payment upon the retirement or death of certain directors and officers, ranging from

$15,000

to

$25,000

per year for

ten

years. The agreements were modified for most participants in

2001,

to establish a minimum age of

65

to qualify for the payments. All participants are fully vested. The accrued benefits under the plan amounted to

$1.1

million at both

December 31, 2019

and

December 31, 2018,

which is included in other liabilities. The expense for the years ended

December 31, 2019,

2018,

and

2017,

totaled

$16,000,

$18,000,

and

$24,000,

respectively, which is included in salaries and employee benefits. The Company funded the plan through the purchase of certain life insurance contracts. The aggregate cash surrender value of these contracts (owned by the Company) was

$2.6

million at

December 

31,

2019

and

$2.5

million at

December 31, 2018

and is included in other assets.

The Company maintains a deferred compensation plan for the benefit of certain officers and directors. The plan permitted certain participants to make elective contributions to their accounts, subject to applicable provisions of the Internal Revenue Code.  In addition, the Company made discretionary contributions to participant accounts. Company contributions were subject to vesting, and generally vested

three

years after the end of the plan year to which the contribution applied, subject to acceleration of vesting upon certain changes in control (as defined in the plan) and to forfeiture upon termination for cause (as defined in the plan). 

No

future contributions are permitted. Participant accounts are adjusted to reflect distributions, and income, gains, losses, and expenses as if the accounts had been invested in permitted investments selected by the participants, including Company common stock.  The plan provides for distributions upon retirement and, subject to applicable limitations under the Internal Revenue Code, limited hardship withdrawals.  As of

December 31, 2019

and

2018,

$1.3

million and

$1.2

million in benefits, respectively, had vested and the accrued benefits are included in other liabilities. Expense recognized for the deferred compensation plan for

2019

and

2017

was

$2,000

and

$28,000,

respectively, and is included in salaries and employee benefits. A reduction in expense of

$15,000

was recognized for the deferred compensation plan during

2018.

Although the plan is an unfunded plan, and does

not

require the Company to segregate any assets, the Company has purchased shares of Company common stock in anticipation of its obligation to pay benefits under the plan.  Such shares are classified in the financial statements as stock held by deferred compensation plan. 

No

purchases were made in

2019,

2018,

and

2017.

 As of

December 31, 2019,

approximately

25,437

shares of Company common stock were classified as stock held by deferred compensation plan.