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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements [Abstract]  
Employee Benefit Plans
Note 13. Employee Benefit Plans

401(k) Plan
The Bank has a defined contribution plan available to substantially all employees who have completed six months of service. Employees may contribute up to $16,500 of their compensation if under age 50 and $22,000 if over age 50, and the Bank may provide a match to employee contributions not to exceed 3.0% of compensation depending on contribution level. Subject to a vote of the Board of Directors, the Bank may also make a profit-sharing contribution to the Plan. Such contribution equaled 2.0% of each eligible employee's compensation in 2011, 2010, and 2009. The expense related to the 401(k) plan was $341,000, $362,000, and $365,000 in 2011, 2010, and 2009, respectively.

Supplemental Retirement Plan
The Bank also provides unfunded, non-qualified supplemental retirement benefits for certain officers, payable in installments over 20 years upon retirement or death. The agreements consist of individual contracts with differing characteristics that, when taken together, do not constitute a post-retirement plan. The costs for these benefits are recognized over the service periods of the participating officers in accordance with FASB ASC Topic 712, "Compensation - Nonretirement Postemployment Benefits". The expense of these supplemental plans was $307,000 in 2011, $230,000 in 2010, and $214,000 in 2009. As of December 31, 2011 and 2010, the accrued liability of these plans was $1,847,000 and $1,596,000, respectively.

Post-Retirement Benefit Plans
The Bank sponsors two post-retirement benefit plans. One plan currently provides a subsidy for health insurance premiums to certain retired employees and a future subsidy for seven active employees who were age 50 and over in 1996. These subsidies are based on years of service and range between $40 and $1,200 per month per person. The other plan provides life insurance coverage to certain retired employees. The Bank also provides health insurance for retired directors. None of these plans are pre-funded.
The Company utilizes FASB ASC Topic 712, "Compensation - Nonretirement Postemployment Benefits", to



recognize the overfunded or underfunded status of a defined benefit post-retirement plan (other than a multiemployer
plan) as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income (loss) of a business entity. The Bank sponsors post-retirement benefit plans which provide certain life insurance and health insurance benefits for certain retired employees and health insurance for retired directors. The following tables set forth the accumulated post-retirement benefit obligation, funded status, and net periodic benefit cost:

At December 31,
 
2011
  
2010
  
2009
 
Change in benefit obligations
         
Benefit obligation at beginning of year:
 $1,796,000  $1,962,000  $1,990,000 
Service cost
  12,000   15,000   21,000 
Interest cost
  112,000   117,000   134,000 
Benefits paid
  (134,000)  (136,000)  (143,000)
Actuarial (gain) loss
  62,000   (162,000)  (40,000)
Benefit obligation at end of year:
 $1,848,000  $1,796,000  $1,962,000 
Funded status
            
Benefit obligation at end of year
 $(1,848,000) $(1,796,000) $(1,962,000)
Accrued benefit cost
 $(1,848,000) $(1,796,000) $(1,962,000)

For the years ended December 31,
 
2011
  
2010
  
2009
 
Components of net periodic benefit cost
         
Service cost
 $12,000  $15,000  $21,000 
Interest cost
  112,000   117,000   134,000 
Amortization of unrecognized transition obligation
  29,000   29,000   29,000 
Amortization of prior service credit
  -   -   (1,000)
Amortization of accumulated losses
  11,000   22,000   24,000 
Net periodic benefit cost
 $164,000  $183,000  $207,000 
Weighted average assumptions as of December 31
            
Discount rate
  6.5%  6.5%  7.0%

The above discount rate assumption was used in determining both the accumulated benefit obligation as well as the net benefit cost. The measurement date for benefit obligations was as of year-end for all years presented. The estimated amount of benefits to be paid in 2012 is $136,500. For years ending 2013 through 2016 the estimated amount of benefits to be paid is $133,000, $148,500, $159,000 and $160,500 respectively, and the total estimated amount of benefits to be paid for years ended 2017 through 2021 is $820,000. Plan expense for 2012 is estimated to be $165,000.
In accordance with FASB ASC Topic 715, "Compensation - Retirement Benefits", amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) are as follows:

At December 31,
 
2011
  
2010
  
Portion to Be Recognized in
Income in 2012
 
Unamortized net actuarial loss
 $(100,000) $(49,000) $- 
Unrecognized transition obligation
  (34,000)  (63,000)  29,000 
    (134,000)  (112,000)  29,000 
Deferred tax benefit at 35%
  47,000   39,000   (10,000)
Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss)
 $(87,000) $(73,000) $19,000