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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2012
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 8 – Employee Benefit Plans

401(k) Plan
The Bank has a defined contribution plan available to substantially all employees who have completed 3 months of service. Employees may contribute up to IRS determined limits and the Bank may match 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. The amount for 2012 has not been established. The expense related to the 401(k) plan was $272,000 and $302,000 for the nine months ended September 30, 2012 and 2011, respectively.

Supplemental Retirement Benefits
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 postretirement 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 retirement benefits was $217,000 and $232,000 for the nine months ended September 30, 2012 and 2011, respectively. As of September 30, 2012, the associated accrued liability included in other liabilities in the balance sheet was $2,022,000 compared to $1,847,000 and $1,787,000 at December 31, 2011 and September 30, 2011, 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 and 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 postretirement 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. The following table sets forth the accumulated postretirement benefit obligation and funded status:

 
 
At or for the nine months ended September 30,
 
 
 
2012
  
2011
 
Change in benefit obligation
 
  
 
Benefit obligation at beginning of year
 
$
1,848,000
  
$
1,796,000
 
Service cost
  
51,000
   
12,000
 
Interest cost
  
84,000
   
87,000
 
Benefits paid
  
(102,000
)
  
(117,000
)
Benefit obligation at end of period
  
1,881,000
   
1,778,000
 
Funded status
        
Benefit obligation at end of period
  
(1,881,000
)
  
(1,778,000
)
Accrued benefit cost at end of period
 
$
(1,881,000
)
 
$
(1,778,000
)

The following table sets forth the net periodic pension cost:

 
 
For the nine months ended
September 30,
  
For the quarters ended
 September 30,
 
 
 
2012
  
2011
  
2012
  
2011
 
Components of net periodic benefit cost
 
  
  
  
 
Service cost
 
$
51,000
  
$
12,000
  
$
17,000
  
$
4,000
 
Interest cost
  
84,000
   
87,000
   
28,000
   
29,000
 
Amortization of unrecognized transition obligation
  
21,000
   
21,000
   
7,000
   
7,000
 
Amortization of accumulated losses
  
8,000
   
15,000
   
2,000
   
5,000
 
Net periodic benefit cost
 
$
164,000
  
$
135,000
  
$
54,000
  
$
45,000
 

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income are as follows:

 
 
September 30,
2012
  
December 31,
2011
  
September 30,
2011
 
Unamortized net actuarial loss
 
$
(100,000
)
 
$
(100,000
)
 
$
(49,000
)
Unrecognized transition obligation
  
(13,000
)
  
(34,000
)
  
(42,000
)
 
  
(113,000
)
  
(134,000
)
  
(91,000
)
Deferred tax benefit at 35%
  
41,000
   
47,000
   
32,000
 
Net unrecognized postretirement benefits included in accumulated other comprehensive income (loss)
 
$
(72,000
)
 
$
(87,000
)
 
$
(59,000
)

The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income for the nine months and quarters ended September 30, 2012 and 2011.

 
 
For the nine months ended
September 30,
  
For the quarters ended
September 30,
 
 
 
2012
  
2011
  
2012
  
2011
 
Unrecognized transition obligation at beginning of period
 
$
(87,000
)
 
$
(73,000
)
 
$
(77,000
)
 
$
(63,000
)
Amortization of unrecognized transition obligation
  
21,000
   
21,000
   
7,000
   
7,000
 
Related deferred taxes
  
(6,000
)
  
(7,000
)
  
(2,000
)
  
(3,000
)
Unrecognized transition obligation at end of period
 
$
(72,000
)
 
$
(59,000
)
 
$
(72,000
)
 
$
(59,000
)

A weighted average discount rate of 7.0% was used in determining the accumulated benefit obligation and the net periodic benefit cost. The assumed health care cost trend rate is 7.0%. The measurement date for benefit obligations was as of year-end for prior years presented. The expected benefit payments for the fourth quarter of 2012 are $34,000

and the expected benefit payments for all of 2012 are $136,000. Plan expense for 2012 is estimated to be $190,000. A 1% change in trend assumptions would create an approximate change in the same direction of $100,000 in the accumulated benefit obligation, $7,000 in the interest cost and $1,000 in the service cost.