EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2024

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 $1.5 million in 2024, $1.5 million in 2023, and $1.2 million in 2022.

The Company-sponsored Employee Stock Ownership Plan (ESOP) maintained for employees of the Company and the Bank who had completed one year of service and attained age 21, was terminated effective May 31, 2024. No employee was eligible to begin participation in the ESOP after that date. All participants in the ESOP on the May 31, 2024 termination date became 100% vested in their account balances. Contributions to the plan are at the discretion of the Board of Directors, and no contribution was made for 2024. Benefit distributions will be made to the participants and the ESOP will be liquidated as soon as administratively feasible following receipt of a favorable determination letter from the Internal Revenue Service in connection with the termination. At December 31, 2024, the ESOP held 5,728 shares valued at $200 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 $30 thousand for 2024, $24 thousand for 2023, and $33 thousand for 2022.

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, 2024 and 2023 was $6.3 million and $4.6 million, respectively. The Company accrued to expense $1.7 million for 2024, $951 thousand for 2023, and $945 thousand for 2022 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, 2024, the total liability of the deferred compensation agreements was $677 thousand, $1.1 million, $2.4 million, and $193 thousand, respectively. Deferred compensation expense totaled $9 thousand, $102 thousand, $128 thousand, and $19 thousand, respectively for 2024.