XML 34 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Pension and Other Benefits | 12 Months Ended
--- | ---
Dec. 31, 2011
Pension and Other Benefits |
Pension and Other Benefits | ## Note 15 — Pension and Other Benefits ### Defined Benefit Plans The Corporation maintained a non-contributory pension plan for substantially all of its employees until September 30, 2007, at which time the Corporation froze its defined benefit pension plan. The benefits are based on years of service and the employee's compensation over the prior five-year period. The plan's benefits are payable in the form of a ten year certain and life annuity. The plan is intended to be a tax-qualified defined benefit plan under Section 401(a) of the Internal Revenue Code. The Pension Plan, which has been in effect since March 15, 1950, generally covers employees of Union Center National Bank and the Parent Corporation who have attained age 21 and completed one year of service prior to September 30, 2007. Payments may be made under the Pension Plan once attaining the normal retirement age of 65 and is generally equal to 44 percent of a participant's highest average compensation over a 5-year period. The following table sets forth changes in projected benefit obligation, changes in fair value of plan assets, funded status, and amounts recognized in the consolidated statements of condition for the Corporation's pension plans at December 31, 2011 and 2010.
|  | 2011 |  | 2010
|  | (Dollars in Thousands)
Change in Benefit Obligation: |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 11,032 |  |  | $ | 10,660 |
Service cost |  |  | — |  |  |  | — |
Interest cost |  |  | 589 |  |  |  | 601 |
Actuarial loss |  |  | 1,335 |  |  |  | 393 |
Benefits paid |  |  | (611 | ) |  |  | (622 | )
Projected benefit obligation at end of year |  | $ | 12,345 |  |  | $ | 11,032 |
Change in Plan Assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning year |  | $ | 6,993 |  |  | $ | 6,652 |
Actual return on plan assets |  |  | (111 | ) |  |  | 663 |
Employer contributions |  |  | 491 |  |  |  | 300 |
Benefits paid |  |  | (611 | ) |  |  | (622 | )
Fair value of plan assets at end of year |  | $ | 6,762 |  |  | $ | 6,993 |
Funded status |  | $ | (5,583 | ) |  | $ | (4,039 | )
Amounts related to unrecognized actuarial losses for the plan, on a pre-tax basis, that have been recognized in accumulated other comprehensive loss amounted to $5,563,000 and $3,914,000 at December 31, 2011 and 2010, respectively. The net periodic pension cost for 2011, 2010 and 2009 includes the following components:
|  | 2011 |  | 2010 |  | 2009
|  | (Dollars in Thousands)
Service cost |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  |  | 589 |  |  |  | 601 |  |  |  | 606 |
Expected return on plan assets |  |  | (381 | ) |  |  | (413 | ) |  |  | (288 | )
Net amortization and deferral |  |  | 179 |  |  |  | 130 |  |  |  | — |
Net periodic pension expense |  | $ | 387 |  |  | $ | 318 |  |  | $ | 318 |
The following table presents the assumptions used to calculate the projected benefit obligation in each of the last three years.
|  | 2011 |  | 2010 |  | 2009
Discount rate |  |  | 4.64 | % |  |  | 5.25 | % |  |  | 5.75 | %
Rate of compensation increase |  |  | N/A |  |  |  | N/A |  |  |  | N/A |
Expected long-term rate of return on plan assets |  |  | 5.50 | % |  |  | 6.25 | % |  |  | 5.00 | %
The following information is provided at December 31:
|  | 2011 |  | 2010 |  | 2009
|  | (Dollars in Thousands)
Information for Plans With a Benefit Obligation in Excess of Plan Assets |  |  |  |  |  |  |  |  |  |  |  |
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 5.25 | % |  |  | 5.75 | % |  |  | 6.25 | %
Expected long-term return on plan assets |  |  | 5.50 | % |  |  | 6.25 | % |  |  | 5.00 | %
Rate of compensation increase |  |  | N/A |  |  |  | N/A |  |  |  | N/A |
The process of determining the overall expected long-term rate of return on plan assets begins with a review of appropriate investment data, including current yields on fixed income securities, historical investment data, historical plan performance and forecasts of inflation and future total returns for the various asset classes. This data forms the basis for the construction of a best-estimate range of real investment return for each asset class. An average, weighted real-return range is computed reflecting the Plan's expected asset mix, and that range, when combined with an expected inflation range, produces an overall best-estimate expected return range. Specific factors such as the Plan's investment policy, reinvestment risk and investment volatility are taken into consideration during the construction of the best estimate real return range, as well as in the selection of the final return assumption from within the range. ### Plan Assets The Union Center National Bank Pension Trust's weighted-average asset allocation at December 31, 2011, 2010 and 2009, by asset category, is as follows:
Asset Category |  | 2011 |  | 2010 |  | 2009
Equity securities |  |  | 47 | % |  |  | 44 | % |  |  | 44 | %
Debt and/or fixed income securities |  |  | 41 | % |  |  | 37 | % |  |  | 46 | %
Alternative investments, including commodities, foreign currency and real estate |  |  | 4 | % |  |  | — | % |  |  | 5 | %
Cash and other alternative investments, including hedge funds, equity structured notes |  |  | 8 | % |  |  | 19 | % |  |  | 5 | %
Total |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The general investment policy of the Pension Trust is for the fund to experience growth in assets that will allow the market value to exceed the value of benefit obligations over time. Appropriate diversification on a total fund basis is achieved by following an allowable range of commitment within asset category, as follows:
|  | Range |  | Target
Equity securities |  |  | 21 – 32 | % |  |  | 26 | %
Debt and/or fixed income securities |  |  | 33 – 49 | % |  |  | 41 | %
International equity |  |  | 18 – 27 | % |  |  | 22 | %
Short term |  |  | N/A |  |  |  | N/A |
Other |  |  | 8 – 13 | % |  |  | 11 | %
The fair values of the Corporation's pension plan assets at December 31, 2011 and 2010, by asset category, are as follows:
|  | December 31, 2011 |  | Fair Value Measurements at Reporting Date Using
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
|  | (Dollars in Thousands)
Cash |  | $ | 512 |  |  | $ | 512 |  |  | $ | — |  |  | $ | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. companies |  |  | 1,788 |  |  |  | 1,788 |  |  |  | — |  |  |  | — |
International companies |  |  | 1,405 |  |  |  | 1,405 |  |  |  | — |  |  |  | — |
U.S. Treasury securities |  |  | 2,798 |  |  |  | 2,798 |  |  |  | — |  |  |  | — |
Commodities |  |  | 259 |  |  |  | 259 |  |  |  | — |  |  |  | — |
Total |  | $ | 6,762 |  |  | $ | 6,762 |  |  | $ | — |  |  | $ | — |
|  | December 31, 2010 |  | Fair Value Measurements at Reporting Date Using
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
|  | (Dollars in Thousands)
Cash |  | $ | 1,379 |  |  | $ | 1,379 |  |  | $ | — |  |  | $ | — |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. companies |  |  | 1,522 |  |  |  | 1,522 |  |  |  | — |  |  |  | — |
International companies |  |  | 1,534 |  |  |  | 1,534 |  |  |  | — |  |  |  | — |
U.S. Treasury securities |  |  | 2,378 |  |  |  | 2,378 |  |  |  | — |  |  |  | — |
Corporate bonds |  |  | 180 |  |  |  | 180 |  |  |  | — |  |  |  | — |
Total |  | $ | 6,993 |  |  | $ | 6,993 |  |  | $ | — |  |  | $ | — |
The following table presents the changes in pension plan asset with significant unobservable inputs (Level 3) for the year ended December 31:
|  | 2011 |  | 2010
|  | (Dollars in Thousands)
Beginning balance, January 1, |  | $ | — |  |  | $ | 331 |
Actual return on plan assets: |  |  |  |  |  |  |  |
Relating to assets still held at the reporting date |  |  | — |  |  |  | — |
Relating to assets sold during the period |  |  | — |  |  |  | 8 |
Purchases, sales and settlements |  |  | — |  |  |  | (339 | )
Transfers out of Level 3 |  |  | — |  |  |  | — |
Ending balance, December 31, |  | $ | — |  |  | $ | — |
The investment manager is not authorized to purchase, acquire or otherwise hold certain types of market securities (subordinated bonds, real estate investment trusts, limited partnerships, naked puts, naked calls, stock index futures, oil, gas or mineral exploration ventures or unregistered securities) or to employ certain types of market techniques (margin purchases or short sales) or to mortgage, pledge, hypothecate, or in any manner transfer as security for indebtedness, any security owned or held by the Plan. ### Cash Flows #### Contributions The Bank expects to contribute $453,000 to its Pension Trust in 2012. The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, signed into law on June 25, 2010, permits single employer and multiple employer defined benefit plan sponsors to elect to extend the plan's amortization period of a Shortfall Amortization Base over either a nine year period or a fifteen year period, rather than the seven year period required under the Pension Protection Act of 2006. The Bank has elected to apply the Pension Relief Act Fifteen Year amortization of the Shortfall Amortization Base for its 2012 minimum funding requirement. The minimum amount to be funded is $453,000, as noted above, by December 31, 2012 with the understanding that fully funding the plan earlier than this date will lower this amount and that funding the plan after this date will increase this amount. As noted, this amount is the minimum required funding amount. The Bank does have the option of funding above this amount but has contributed the minimum historically. #### Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each year 2012, 2013, 2014, 2015, 2016 and years 2017-2021, respectively: $701,241, $717,192, $775,137, $767,674, $772,132 and $3,980,680. ### 401(k) Benefit Plan The Corporation maintains a 401(k) employee savings plan to provide for defined contributions which covers substantially all employees of the Corporation. The Corporation's contribution to its 401(k) plan provides a dollar-for-dollar matching contribution up to six percent of salary deferrals. For 2011, 2010 and 2009, employer contributions amounted to $358,000, $294,000 and $266,000, respectively.

X
- Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitExpenseAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration