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Benefit Plans
 3 Months Ended
Mar. 31, 2013
Benefit Plans [Abstract]  
Benefit Plans
Note 9. 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. Effective May 1, 2011, the plan was frozen to new participants. Only individuals employed on or before April 30, 2011 are eligible to become participants in the plan upon satisfaction of the eligibility requirements. 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 months ended March 31, 2013 and 2012 were as follows:

 

                 
   

(in thousands)

For the three months
ended March 31,

  
    2013     2012  

Service cost

   $ 118     $ 106  

Interest cost

     70       67  

Expected return on plan assets

     (76 )      (69 ) 

Amortization of prior service cost

     —         1  

Amortization of net loss

     27       22  
   

 

 

    

 

 

  

Net periodic benefit cost

   $ 139     $ 127  
   

 

 

    

 

 

  

The Company previously disclosed in its consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2012, that it expected to contribute $500 thousand to its pension plan during the year ended December 31, 2013. The Company made that contribution during the first quarter of 2013.

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, 2012 for additional information about the Company’s benefit plans.