pab bankshares, inc. - SNL Financial

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 12.
INCOME TAXES (Continued)
The Company has invested in affordable housing projects to receive State of Georgia low income housing tax credits to
help reduce state income tax expense. The investment in these projects totaled $1,973,283 and $2,302,919 at December
31, 2009 and 2008, respectively. The projected availability of the unused credits follows:
Year of projected availability:
Amount
2010 $ 797,521
2011 797,521
2012 797,521
2013 797,521
2014 769,318
Later 823,629
Total $ 4,783,031
NOTE 13.
EMPLOYEE BENEFIT PLANS
The Company provides an employee 401(k) plan for qualified employees. The 401(k) plan allows participants to defer a
portion of their compensation and provides that the Company may match a portion of the participants’ deferred
compensation. The plan also provides for non-elective and discretionary profit sharing contributions to be made by the
Company at the sole discretion of the Board of Directors. The Company did not accrue a discretionary profit sharing
contribution for 2009 and 2008. Approximately 3.0% of the participants’ eligible compensation was accrued as the
discretionary profit sharing contributions for 2007. The employer contributions are on a five-year vesting schedule. All
full-time and part-time employees are eligible to participate in the plan provided they have met the eligibility requirements.
Generally, a participant must have completed one month of employment to become eligible, with employer contributions
beginning after six months of employment. Aggregate expense under the plan charged to salaries and employee benefits
expense during 2009, 2008 and 2007 amounted to $268,211, $440,288 and $862,419, respectively.
NOTE 14.
DEFERRED COMPENSATION AND RETIREMENT PLANS
Under separate deferred compensation agreements executed in prior years with certain officers, deferred compensation is
to be payable over a fifteen-year period beginning at the earlier of age 65, death, or disability of each officer. Annual
accruals were made based on actuarial assumptions for the present value of the future obligations. In 2001, the Board of
Directors elected to terminate these plans. At that time, the Company recorded an expense and an accrual of
approximately $898,000 for the net present value of the liability covering two executive officers that were retiring at the
end of 2001. The total accrued liability for these deferred compensation plans was $1,947,960 and $1,793,908 at
December 31, 2009 and 2008, respectively. On an annual basis, the Company re-evaluates the net present value of these
future obligations and records an additional expense (benefit) to account for the accrual. Changes in interest rates affect
the computation of net present value of these obligations. The expense (benefit) for these deferred compensation plans
charged to salaries and employee benefits expense were $319,139, ($70,817) and $99,457 during 2009, 2008 and 2007,
respectively.
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