EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

The Company and the Bank provide a deferred compensation arrangement (401k plan) whereby employees contribute a percentage of their compensation. For employee contributions of six percent or less, the Company and its subsidiary bank provide a 50% matching contribution. Contributions totaled $1.2 million in 2022, $1.1 million in 2021, and $990 thousand in 2020.

The Company sponsors an Employee Stock Ownership Plan (ESOP) for employees who have completed one year of service for the Company and attained age 21. Employees become fully vested after five years of service. Contributions to the plan are at the discretion of the Board of Directors. At December 31, 2022, the ESOP held 5,728 shares valued at $183 thousand of Company common stock and had no debt obligation. All shares held by the plan were considered outstanding for net income per share purposes. Total ESOP expense was $33 thousand for 2022, $3 thousand for 2021, and $26 thousand for 2020.

In 2014, the Company established a Supplemental Executive Retirement Plan (“SERP”) for three active key executives. During 2016, the Company established a SERP for eight additional active key executives. Pursuant to the SERP, these officers are entitled to receive 180 equal monthly payments commencing at the later of obtaining age 65 or separation from service. The costs of such benefits, assuming a retirement date at age 65, are accrued by the Company and included in other liabilities in the Consolidated Balance Sheets. The SERP balance at December 31, 2022 and 2021 was $3.7 million and $2.7 million, respectively. The Company accrued to expense $945 thousand for 2022, $945 thousand for 2021, and $676 thousand for 2020 for future benefits payable under the SERP. The SERP is an unfunded plan and is considered a general contractual obligation of the Company.

Upon the acquisition of Iberville Bank, Southwest Banc Shares, Inc., FMB Banking Corporation, and SWG, the Bank assumed deferred compensation agreements with directors and employees. At December 31, 2022, the total liability of the deferred compensation agreements was $833 thousand, $1.1 million, $2.8 million, and $353 thousand, respectively. Deferred compensation expense totaled $21 thousand, $46 thousand, $190 thousand, and $19 thousand, respectively for 2022.