DIRECTORS RETIREMENT PLAN

The Company provides a retirement plan that directors appointed to the board prior to 2009 who completed five years of service may retire and receive benefit payments ranging from $5,000 through $17,500 per annum, depending upon years of credited service, for a period of ten years. This plan is unfunded. The following tables present the status of the plan and the components of net periodic plan cost for the years then ended. The measurement date for the accumulated benefit obligation is December 31 of the years presented.



	December 31,
	2017		2016
	(in thousands)
Accrued plan cost included in other liabilities	$	673	$	671
Amount not recognized as component of net postretirement benefit cost
Recognized in accumulated other comprehensive income
Net actuarial gain	$	28	$	(2	)
Unrecognized prior service cost	—		—
Amounts not recognized as a component of net postretirement benefit (benefit)	$	28	$	(2	)



	Years Ended December 31,
	2017		2016		2015
	(in thousands)
Net periodic plan cost included the following components:
Service cost	$	21	$	19	$	19
Interest cost	23		26		46
Amortization of prior service cost	3		12		13
	$	47	$	57	$	78

A discount rate of 3.30%, 3.68% and 3.87% was assumed in the plan valuation for 2017, 2016 and 2015, respectively. As the benefit amount is not dependent upon compensation levels, a rate of increase in compensation assumption was not utilized in the plan valuation.

The director’s retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows (in thousands):




2018	$	75
2019	63
2020	63
2021	37
2022	37
2023-2027	240

The Company expects its contribution to the director’s retirement plan to be $75,000 in 2018.

The amount in accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost in 2018 is $0.