Note 10 – Employees’ Benefit Plans

The Bancorp maintains an Unqualified Deferred Compensation Plan (the “UDC Plan”). The purpose of the UDC Plan is to provide deferred compensation to key senior management employees of the Bancorp in order to recognize their substantial contributions to the Bank and provide them with additional financial security as inducement to remain with the Bank. The Compensation Committee selects which persons shall be participants in the UDC Plan. Participants’ accounts are credited each year with an amount based on a formula involving the participant’s employer funded contributions under all qualified plans and the limitations imposed by Internal Revenue Code subsection 401(a)(17) and Code section 415. The unqualified deferred compensation plan liability at December 31, 2023 and 2022 was approximately $263 thousand and $251 thousand, respectively. The UDC Plan expense amounted to approximately $7 thousand for 2023 and $4 thousand for 2022.

Directors have deferred some of their fees in consideration of future payments. Fee deferrals, including interest, totaled approximately $52 thousand and $53 thousand for 2023 and 2022, respectively. The deferred fee liability at both December 31, 2023 and 2022 was approximately $1.4 million.