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Benefit Plans
 6 Months Ended
Jun. 30, 2011
Benefit Plans  
Benefit Plans

Note 8. Benefit Plans

The Bank has a noncontributory, defined benefit pension plan for all full-time employees over 21 years of age with at least one year of credited service and hired prior to May 1, 2011. Benefits are generally based upon years of service and average compensation for the five highest-paid consecutive years of service. The Bank's funding practice has been to make at least the minimum required annual contribution permitted by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.

Components of the net periodic benefit cost of the plan for the three and six months ended June 30, 2011 and 2010 were as follows:

 

     (in thousands)  
     For the three months
ended June 30,		     For the six months
ended June 30,		  
     2011     2010     2011     2010  

Service cost

    $ 90      $ 77      $ 180      $ 153   

Interest cost

      77        71        153        142   

Expected return on plan assets

      (85 )      (78 )      (170 )      (156 ) 

Amortization of prior service cost

      1        1        2        2   

Amortization of net obligation at transition

      —          (1 )      —          (2 ) 

Amortization of net loss

      9        5        18        10   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

    $ 92      $ 75      $ 183      $ 149   
  

 

 

    

 

 

    

 

 

    

 

 

  

The Company previously disclosed in its consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2010, that it expected to contribute $366 thousand to its pension plan for the 2011 plan year. The Company is planning to make the contribution for the 2011 plan year during the fourth quarter of 2011.

In addition to the defined benefit pension plan, the Company maintains a 401(k) plan and an employee stock ownership plan (ESOP) for eligible employees. The Bank also maintains a Split Dollar Life Insurance Plan that provides life insurance coverage to insurable directors. See Note 11 of the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 for additional information about the Company's benefit plans.