Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2012

Accumulated post-retirement benefit obligation, funded status, net periodic benefit cost and assumptions used

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	)

Schedule of net benefit costs

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

Schedule of net periodic benefit cost not yet recognized

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	)

Unrealized gain or loss on postretirement benefit

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	)