Note 16 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

(16) Employee Benefit Plans

Bancorp has a combined employee stock ownership and profit sharing plan. The plan is a defined contribution plan and is available to all employees meeting certain eligibility requirements. In general, for employees who work more than 1,000 hours per year, Bancorp matches employee contributions up to 6% of the employee’s salary, and contributes an amount of Bancorp stock equal to 2% of the employee’s salary. Employer matching expenses related to contributions to the plan for 2019, 2018, and 2017 were $2.6 million, $2.2 million and $2.0 million and are recorded on the consolidated statements of income within employee benefits. Employee and employer contributions are made in accordance with the terms of the plan. As of December 31, 2019 and 2018, the KSOP held 508,000 and 568,000 shares of Bancorp stock, respectively.

In addition Bancorp has non-qualified plans into which directors and certain senior officers may defer director fees or salary/incentives. Bancorp matched certain executives’ deferrals into the senior officers’ plan amounting to approximately $241,000, $250,000 and $232,000 in 2019, 2018 and 2017. At December 31, 2019 and 2018, the amounts included in other liabilities in the consolidated financial statements for this plan were $10.1 million and $8.6 million. The total was comprised primarily of participants’ contributions, and represented the fair value of mutual fund investments directed by plan participants.

Bancorp sponsors an unfunded, non-qualified, defined benefit retirement plan for three key officers (one current and two retired), and has no plans to increase the number of or the benefits to participants. All participants are fully vested and based on 25 years of service. Bancorp uses a December 31 measurement date for this plan. The accumulated benefit obligation for the plan included in other liabilities in the consolidated financial statements was $2.3 million and $2.1 million as of December 31, 2019 and December 31, 2018. Actuarially determined pension costs are expensed and accrued over the service period and benefits are paid from Bancorp’s assets. Bancorp maintains life insurance policies, for which it is the beneficiary, for defined benefit plan participants and certain former executives. Income from these policies serves to offset costs of benefits. The liability for Bancorp’s plan met the benefit obligation as of December 31, 2019 and 2018. Net periodic benefit cost was immaterial for all periods.

Benefits expected to be paid in each year from 2020 to 2024 and beyond are listed in the table below.

(in thousands)
2020	$	84
2021		—
2022		—
2023		—
2024		137
Beyond 2024		3,141
Total future payments	$	3,362

Expected benefits to be paid are based on the same assumptions used to measure Bancorp’s benefit obligation at December 31, 2019. There are no obligations for other post-retirement and post-employment benefits.