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EMPLOYEE RETIREMENT PLANS | 12 Months Ended
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Dec. 31, 2012
Asset Retirement Obligation Disclosure [Abstract] |
Pension and Other Postretirement Benefits Disclosure [Text Block] |
12. | EMPLOYEE RETIREMENT PLANS
The Company has a defined benefit pension plan covering substantially all employees, as well as an unfunded supplemental pension plan for key executives. Retirement benefits are provided based on employees’ years of credited service and average earnings or stated amounts for years of service. Normal retirement age is 65 with provisions for earlier retirement. The plan also has provisions for disability and death benefits. The plan closed to new participants as of August 1, 2011. The Company’s funding policy for the defined benefit pension plan is to make contributions to the plan such that all employees’ benefits will be fully provided by the time they retire. Plan assets are stated at market value and consist primarily of equity securities and fixed income securities, mainly U.S. government and corporate obligations. The Company follows ASC 715, Compensation – Retirement Benefits (“ASC 715”) which requires employers to recognize the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability in their statements of financial position and to recognize changes in the funded status in the year in which the changes occur as a component of comprehensive income. In addition, ASC 715 requires employers to measure the funded status of their plans as of the date of their year-end statements of financial position. ASC 715 also requires additional disclosures regarding amounts included in accumulated other comprehensive loss. The Company’s pension plan’s weighted average asset allocation at December 31, 2012 and 2011, by asset category, was as follows:
|  | Plan Assets at December 31, |
|  | 2012 |  |  | 2011 |
Asset Category: |  |  |  |  |  |  |  |
Equity Securities |  |  | 52 | % |  |  | 42 | %
Fixed Income Securities |  |  | 40 | % |  |  | 49 | %
Other |  |  | 8 | % |  |  | 9 | %
Total |  |  | 100 | % |  |  | 100 | %
The Company has a Retirement Plan Committee, consisting of the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, to manage the operations and administration of all benefit plans and related trusts. The committee has an investment policy for the pension plan assets that establishes target asset allocation ranges for the above listed asset classes as follows: equity securities: 20% - 80%; fixed income securities: 20% - 80%; and other, principally cash: 0% - 20%. On a semi-annual basis, the committee reviews progress towards achieving the pension plan’s performance objectives. To develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This resulted in the selection of the 7.75% long-term rate of return on assets assumption. Assumptions used in determining the funded status at December 31, 2012 and 2011 were:
|  | 2012 |  |  | 2011 |
Discount rate |  |  | 4.23 | % |  |  | 4.60 | %
Rate of compensation increase |  |  | 4.50 | % |  |  | 4.50 | %
The following is a reconciliation of the change in benefit obligation and plan assets of both the defined benefit pension plan and the unfunded supplemental pension plan for the years ended December 31, 2012 and 2011:
|  | Defined Benefit Pension Plan |  |  | Supplemental Pension Plan |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
|  | (Dollars in thousands) |
Change in projected benefit obligation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation, beginning of year |  | $ | 39,523 |  |  | $ | 34,407 |  |  | $ | 13,870 |  |  | $ | 10,754 |
Service cost |  |  | 1,236 |  |  |  | 977 |  |  |  | 236 |  |  |  | 235 |
Interest cost |  |  | 1,800 |  |  |  | 1,807 |  |  |  | 516 |  |  |  | 566 |
Plan amendments |  |  | - |  |  |  | - |  |  |  | (1,415 | ) |  |  | - |
Actuarial loss (gain) |  |  | 2,532 |  |  |  | 3,776 |  |  |  | (576 | ) |  |  | 2,494 |
Benefits paid |  |  | (1,639 | ) |  |  | (1,444 | ) |  |  | (361 | ) |  |  | (179 | )
Projected benefit obligation, end of year |  | $ | 43,452 |  |  | $ | 39,523 |  |  | $ | 12,270 |  |  | $ | 13,870 |
Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets, beginning of year |  |  | 26,655 |  |  |  | 26,193 |  |  |  | - |  |  |  | - |
Actual return on plan assets |  |  | 2,932 |  |  |  | 400 |  |  |  | - |  |  |  | - |
Administrative expenses |  |  | (129 | ) |  |  | (94 | ) |  |  | - |  |  |  | - |
Contributions |  |  | - |  |  |  | 1,600 |  |  |  | 361 |  |  |  | 179 |
Benefits paid |  |  | (1,639 | ) |  |  | (1,444 | ) |  |  | (361 | ) |  |  | (179 | )
Fair value of plan assets, end of year |  | $ | 27,819 |  |  | $ | 26,655 |  |  | $ | - |  |  | $ | - |
Funded status of plan |  | $ | (15,633 | ) |  | $ | (12,868 | ) |  | $ | (12,270 | ) |  | $ | (13,870 | )
Amounts recognized in the consolidated balance sheets consist of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accrued liabilities - other |  | $ | - |  |  | $ | - |  |  | $ | (373 | ) |  | $ | (394 | )
Long-term pension liability |  |  | (15,633 | ) |  |  | (12,868 | ) |  |  | (11,897 | ) |  |  | (13,476 | )
Net amount recognized |  | $ | (15,633 | ) |  | $ | (12,868 | ) |  | $ | (12,270 | ) |  | $ | (13,870 | )
Amounts recognized in accumulated other comprehensive loss consist of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accumulated loss, net of income tax benefit of $6,735, $6,575, $2,102 and $2,487, respectively |  | $ | 10,534 |  |  | $ | 10,283 |  |  | $ | 3,288 |  |  | $ | 3,891 |
Prior service cost, net of income tax benefit of $1, $1, ($402) and $106, respectively |  |  | 1 |  |  |  | 2 |  |  |  | (628 | ) |  |  | 166 |
Net amount recognized |  | $ | 10,535 |  |  | $ | 10,285 |  |  | $ | 2,660 |  |  | $ | 4,057 |
The accumulated benefit obligation for the defined benefit pension plan and the supplemental pension plan was $38.2 million and $11.6 million, respectively, at December 31, 2012 and $35.3 million and $12.0 million, respectively, at December 31, 2011. Assumptions used in determining net periodic pension cost for the years ended December 31, 2012, 2011 and 2010 were:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Discount rate |  |  | 4.60 | % |  |  | 5.40 | % |  |  | 5.95 | %
Rate of compensation increase |  |  | 4.50 | % |  |  | 4.50 | % |  |  | 4.50 | %
Long-term rate of return on plan assets |  |  | 7.75 | % |  |  | 8.00 | % |  |  | 8.00 | %
The components of net periodic pension cost for the years ended December 31, 2012, 2011 and 2010, were:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Benefits earned during the period |  | $ | 1,472 |  |  | $ | 1,212 |  |  | $ | 1,187 |
Interest cost on projected benefit obligation |  |  | 2,317 |  |  |  | 2,373 |  |  |  | 2,449 |
Expected return on plan assets |  |  | (1,994 | ) |  |  | (2,021 | ) |  |  | (1,836 | )
Net amortization and deferral |  |  | 1,612 |  |  |  | 1,272 |  |  |  | 1,448 |
Net pension expense |  | $ | 3,407 |  |  | $ | 2,836 |  |  | $ | 3,248 |
The Company expects to recognize $1.6 million of amortization of unrecognized loss and $111,000 of amortization of prior service cost as components of net periodic benefit cost in 2013, which are included in accumulated other comprehensive loss at December 31, 2012. It is the Company’s intention to satisfy the minimum funding requirements and maintain at least an 80% funding percentage in its defined benefit retirement plan in future years. At this time, the level of cash contribution that will be required in 2013 to maintain the minimum funding balance is unknown. Projected benefit payments for the plans as of December 31, 2012 were estimated as follows:
|  | Defined Benefit Pension Plan |  |  | Supplemental Pension Plan |
|  | (Dollars in thousands) |
2013 |  | $ | 1,834 |  |  | $ | 373 |
2014 |  | $ | 1,905 |  |  | $ | 390 |
2015 |  | $ | 1,968 |  |  | $ | 398 |
2016 |  | $ | 2,057 |  |  | $ | 421 |
2017 |  | $ | 2,125 |  |  | $ | 427 |
2018 - 2022 |  | $ | 11,990 |  |  | $ | 2,534 |
The following table summarizes the fair value of the Company’s pension plan assets as of December 31, 2012 by asset category within the fair value hierarchy (for further level information, see Note 4):
|  | December 31, 2012 |
|  | Quoted Prices |  |  | Significant |  |  | Significant |  |  |  |
|  | in Active Markets |  |  | Observable Inputs |  |  | Unobservable Inputs |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (Dollars in thousands) |
Common stocks |  | $ | 10,169 |  |  | $ | 1,118 |  |  | $ | - |  |  | $ | 11,287 |
Preferred stocks |  |  | 1,038 |  |  |  | - |  |  |  | - |  |  |  | 1,038 |
Exchange traded funds |  |  | 3,194 |  |  |  | - |  |  |  | - |  |  |  | 3,194 |
Corporate obligations |  |  | - |  |  |  | 4,573 |  |  |  | - |  |  |  | 4,573 |
State and municipal obligations |  |  | - |  |  |  | 574 |  |  |  | - |  |  |  | 574 |
Foreign obligations |  |  | - |  |  |  | 16 |  |  |  | - |  |  |  | 16 |
Pooled fixed income funds |  |  | 3,212 |  |  |  | - |  |  |  | - |  |  |  | 3,212 |
U.S. government securities |  |  | - |  |  |  | 1,584 |  |  |  | - |  |  |  | 1,584 |
Cash and cash equivalents |  |  | 2,264 |  |  |  | - |  |  |  | - |  |  |  | 2,264 |
Subtotal |  |  | 19,877 |  |  |  | 7,865 |  |  |  | - |  |  |  | 27,742 |
Other assets (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 77 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 27,819 |
(1) This category represents trust receivables that are not leveled. The following table summarizes the fair value of the Company’s pension plan assets as of December 31, 2011 by asset category within the fair value hierarchy (for further level information, see Note 4):
|  | December 31, 2011 |
|  | Quoted Prices |  |  | Significant |  |  | Significant |  |  |  |
|  | in Active Markets |  |  | Observable Inputs |  |  | Unobservable Inputs |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (Dollars in thousands) |
Common stocks |  | $ | 8,329 |  |  | $ | 582 |  |  | $ | - |  |  | $ | 8,911 |
Preferred stocks |  |  | 859 |  |  |  | - |  |  |  | - |  |  |  | 859 |
Exchange traded funds |  |  | 2,180 |  |  |  | - |  |  |  | - |  |  |  | 2,180 |
Corporate obligations |  |  | - |  |  |  | 4,747 |  |  |  | - |  |  |  | 4,747 |
State and municipal obligations |  |  | - |  |  |  | 806 |  |  |  | - |  |  |  | 806 |
Foreign obligations |  |  | - |  |  |  | 51 |  |  |  | - |  |  |  | 51 |
Pooled fixed income funds |  |  | 4,378 |  |  |  | - |  |  |  | - |  |  |  | 4,378 |
U.S. government securities |  |  | - |  |  |  | 2,288 |  |  |  | - |  |  |  | 2,288 |
Cash and cash equivalents |  |  | 2,337 |  |  |  | - |  |  |  | - |  |  |  | 2,337 |
Subtotal |  |  | 18,083 |  |  |  | 8,474 |  |  |  | - |  |  |  | 26,557 |
Other assets (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 98 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 26,655 |
(1) This category represents trust receivables that are not leveled. The Company also has a defined contribution plan covering substantially all employees. The Company contributed approximately $221,000, $212,000 and $200,000 in 2012, 2011 and 2010, respectively.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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