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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2012
Employee Benefit Plans [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 three months of service. Employees may contribute up to IRS-determined limits 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 2012, 2011, and 2010. The expense related to the 401(k) plan was $363,000, $341,000, and $362,000 in 2012, 2011, and 2010, 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 $289,000 in 2012, $307,000 in 2011, and $230,000 in 2010. As of December 31, 2012 and 2011, the accrued liability of these plans was $2,080,000 and $1,847,000, 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 following table sets forth the accumulated postretirement benefit obligation and funded status:

At December 31,
 
2012
  
2011
  
2010
 
Change in benefit obligations
 
  
  
 
Benefit obligation at beginning of year:
 
$
1,848,000
  
$
1,796,000
  
$
1,962,000
 
Service cost
  
16,000
   
12,000
   
15,000
 
Interest cost
  
107,000
   
112,000
   
117,000
 
Benefits paid
  
(103,000
)
  
(134,000
)
  
(136,000
)
Actuarial (gain) loss
  
86,000
   
62,000
   
(162,000
)
Benefit obligation at end of year:
 
$
1,954,000
  
$
1,848,000
  
$
1,796,000
 
Funded status
            
Benefit obligation at end of year
 
$
(1,954,000
)
 
$
(1,848,000
)
 
$
(1,796,000
)
Unamortized prior service cost
  
186,000
   
100,000
   
49,000
 
Unrecognized transition obligation
  
5,000
   
34,000
   
63,000
 
Accrued benefit cost
 
$
(1,763,000
)
 
$
(1,714,000
)
 
$
(1,684,000
)
Weighted average discount rate as of December 31
  
4.5
%
  
6.5
%
  
6.5
%

The following table sets forth the net periodic pension cost:

For the years ended December 31,
 
2012
  
2011
  
2010
 
Components of net periodic benefit cost
 
  
  
 
Service cost
 
$
16,000
  
$
12,000
  
$
15,000
 
Interest cost
  
107,000
   
112,000
   
117,000
 
Amortization of unrecognized transition obligation
  
29,000
   
29,000
   
29,000
 
Amortization of prior service credit
  
-
   
-
   
-
 
Amortization of accumulated losses
  
-
   
11,000
   
22,000
 
Net periodic benefit cost
 
$
152,000
  
$
164,000
  
$
183,000
 
Weighted average discount rate for net periodic cost
  
4.5
%
  
6.5
%
  
6.5
%

The measurement date for benefit obligations was as of year-end for all years presented. The estimated amount of benefits to be paid in 2013 is $102,000. For years ending 2014 through 2017 the estimated amount of benefits to be paid is $104,000, $105,000, $118,000 and $120,000 respectively, and the total estimated amount of benefits to be paid for years ended 2018 through 2022 is $641,000. Plan expense for 2013 is estimated to be $112,000.
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,
 
2012
  
2011
  
Portion to Be Recognized in
Income in 2013
 
Unamortized net actuarial loss
 
$
(186,000
)
 
$
(100,000
)
 
$
14,000
 
Unrecognized transition obligation
  
(5,000
)
  
(34,000
)
  
5,000
 
 
  
(191,000
)
  
(134,000
)
  
19,000
 
Deferred tax benefit (expense) at 35%
  
68,000
   
47,000
   
(7,000
)
Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss)
 
$
(123,000
)
 
$
(87,000
)
 
$
12,000
 


The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income for the years ended December 31, 2012 and 2011:

 For the years ended December 31,
 
2012
  
2011
 
Unrecognized postretirement benefits  at beginning of period
 
$
(87,000
)
 
$
(73,000
)
Change in unrecognized postretirement benefits
  
(57,000
)
  
(22,000
)
Related deferred taxes
  
21,000
   
8,000
 
Unrecognized postretirement benefits at end of period
 
$
(123,000
)
 
$
(87,000
)