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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2012
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 $397, $385, and $350 in 2012, 2011, and 2010, 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 $110. The Corporation recognized profit sharing expense of $783, $667, and $641 in 2012, 2011, and 2010 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, 2012 and 2011, obligations of $3,792 and $3,276, respectively, were included in other liabilities for this plan. Expenses related to this plan were $728 in 2012, $647 in 2011, and $227 in 2010.

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, 2012 and 2011, obligations of $813 and $686, respectively, were included in other liabilities for this plan. Expenses related to this plan were $127 in 2012, $106 in 2011, and $21 in 2010.

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 following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2012, 2011, and 2010:

 

                         
    2012     2011     2010  

Benefit obligation at beginning of year

   $ 1,674     $ 1,073     $ 783  

Interest cost

     69       56       43  

Service cost

     88       49       34  

Actual claim expense

     (184 )      (262 )      (167 ) 

Actuarial loss

     577       758       380  
   

 

 

    

 

 

    

 

 

  
       

Benefit obligation at end of year

   $ 2,224     $ 1,674     $ 1,073  
   

 

 

    

 

 

    

 

 

  

Amounts recognized in accumulated other comprehensive income at December 31, 2012 and 2011 consist of:

 

                 
    2012     2011  

Net actuarial loss

   $ (1,502 )    $ (958 ) 

Transition obligation

     (7 )      (14 ) 
   

 

 

    

 

 

  
      (1,509 )      (972 ) 

Tax effect

     528       340  
   

 

 

    

 

 

  
    $ (981 )    $ (632 ) 
   

 

 

    

 

 

  

The accumulated benefit obligation was $2,224 and $1,674 at December 31, 2012 and 2011, respectively.

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

 

                         
    2012     2011     2010  

Service cost

   $ 88     $ 49     $ 34  

Interest cost

     69       56       43  

Net amortization of transition obligation and actuarial loss

     41       11       3  
   

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

     198       116       80  
   

 

 

    

 

 

    

 

 

  
       

Net loss

     578       758       380  

Amortization of loss

     (34 )      (4 )      4  

Amortization of transition obligation

     (7 )      (7 )      (7 ) 
   

 

 

    

 

 

    

 

 

  

Total recognized in other comprehensive income

     537       747       377  
   

 

 

    

 

 

    

 

 

  

Total recognized in net periodic benefit cost and other comprehensive income

   $ 735     $ 863     $ 457  
   

 

 

    

 

 

    

 

 

  

 

The estimated net loss and transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $54 and $7, respectively.

The weighted average discount rate used to calculate net periodic benefit cost was 4.29% in 2012, 5.50% in 2011, and 5.75% in 2010. The weighted average rate used to calculate accrued benefit obligations was 3.88% in 2012, 4.29% in 2011, and 5.50% in 2010. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2013 and thereafter. A one percent increase in the health care trend rates would result in an increase of $289 in the benefit obligation as of December 31, 2012, and would increase the service and interest costs by $43 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $247 and $34 in the benefit obligation and services and interest costs, respectively, at December 31, 2012.