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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2011
Employee Benefit Plans [Abstract]  
Employee Benefit Plans

13.  Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan in which substantially all employees participate. The plan permits employees to make pre-tax contributions which are matched by the Corporation at 100% for every 1% contributed up to three percent then 50% for every 1% contributed up to the next four percent in total of the employee's compensation. The Corporation's contributions were $385, $350, and $337 in 2011, 2010, and 2009, respectively. Profit sharing contributions to this plan, based on current year compensation, are 6 percent of total compensation plus 5.7 percent of the compensation in excess of $107. The Corporation recognized profit sharing expense of $667, $641, and $612 in 2011, 2010, and 2009 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan ("SERP") for certain executives to compensate those executive participants in the Corporation's retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2011 and 2010, obligations of $3,276 and $2,842, respectively, were included in other liabilities for this plan. Expenses related to this plan were $647 in 2011, $227 in 2010, and $675 in 2009.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation's directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2011 and 2010, obligations of $686 and $580, respectively, were included in other liabilities for this plan. Expenses related to this plan were $106 in 2011, $21 in 2010, and $22 in 2009.

The Corporation has an unfunded post retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65. The Corporation uses a December 31 measurement date for this plan.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2011, 2010, and 2009:

 

     2011     2010     2009  

Benefit obligation at beginning of year

    $ 1,073      $ 783      $ 456   

Interest cost

      56        43        26   

Service cost

      49        34        26   

Actual claim expense

      (262 )      (167 )      (71 ) 

Cost of early retirement window

      –        –        140   

Actuarial (gain)/loss

      758        380        206   
  

 

 

    

 

 

    

 

 

  

Benefit obligation at end of year

    $ 1,674      $ 1,073      $ 783   
  

 

 

    

 

 

    

 

 

  

Amounts recognized in accumulated other comprehensive income at December 31, 2011 and 2010 consist of:

 

     2011     2010  

Net actuarial gain/(loss)

    $ (958 )    $ (204 ) 

Transition obligation

      (14 )      (22 ) 
  

 

 

    

 

 

  
     (972 )      (226 ) 

Tax effect

      340        79   
  

 

 

    

 

 

  
   $ (632 )    $ (147 ) 
  

 

 

    

 

 

  

The accumulated benefit obligation was $1,674 and $1,073 at December 31, 2011 and 2010, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

 

     2011     2010     2009  

Service cost

    $ 49      $ 34      $ 26   

Interest cost

      56        43        26   

Cost of early retirement window

      -        -        140   

Net amortization of transition obligation and actuarial gain

      11        3        (6 ) 
  

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

      116        80        186   
  

 

 

    

 

 

    

 

 

  

Net loss

      758        380        206   

Amortization of gain

      (4 )      4        14   

Amortization of transition obligation

      (7 )      (7 )      (8 ) 
  

 

 

    

 

 

    

 

 

  

Total recognized in other comprehensive income

      747        377        212   
  

 

 

    

 

 

    

 

 

  

Total recognized in net periodic benefit cost and other comprehensive income

    $ 863      $ 457      $ 398   
  

 

 

    

 

 

    

 

 

  

 

The estimated net gain and transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $33 and $7, respectively.

The weighted average discount rate used to calculate net periodic benefit cost was 5.50% in 2011, 5.75% in 2010, and 5.75% in 2009. The weighted average rate used to calculate accrued benefit obligations was 4.29% in 2011, 5.50% in 2010, and 5.75% in 2009. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2012 and thereafter. A one percent increase in the health care trend rates would result in an increase of $206 in the benefit obligation as of December 31, 2011, and would increase the service and interest costs by $30 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $178 and $24 in the benefit obligation and services and interest costs, respectively, at December 31, 2011.