RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

RETIREMENT PLANS [Abstract]

Summary of funding and administrative cost of qualified noncontributory defined benefit retirement plan and 401(k) plan charged to salaries and employee benefits

Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to salaries and employee benefits in the consolidated statements of income for the years ended December 31 were as follows (in thousands):

	2012		2011		2010
Qualified noncontributory defined benefit retirement plan	$	355		543		360
401(k) plan		275		290		277

Components of net periodic pension cost of nonqualified defined benefit retirement plan

The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the years ended December 31 are summarized as follows (in thousands):

	2012		2011			2010
Service cost	$	89		111			174
Interest cost		43		35			32
Amortization of unrecognized (gain) loss		20		(28	)		(1	)
Amortization of unrecognized prior service cost		29		32			48
Net periodic pension cost	$	181		150			253

Reconciliation of changes in projected benefit obligation of nonqualified defined benefit retirement plan

A reconciliation of changes in the projected benefit obligation of the nonqualified defined benefit retirement plan at December 31 follows (in thousands):

	2012		2011			2010
Projected benefit obligation at beginning of year	$	969		636			544
Service cost		89		111			174
Interest cost		43		35			32
Actuarial (gain) or loss		52		305			(114	)
Settlements		-		(74	)		-
Curtailment		-		(44	)		-
Projected benefit obligation at end of year	$	1,153		969			636

Amount recognized in accumulated other comprehensive income net of deferred income taxes for nonqualified defined benefit plan

Amounts recognized in accumulated other comprehensive income at December 31 for the nonqualified defined benefit retirement plan consists of (in thousands):

	2012		2011		2010
Net actuarial (gain)/loss	$	125		103		(117	)
Past service cost		29		49		225
	$	154		152		108

Estimated amounts amortized from accumulated other comprehensive income into net periodic benefit cost under nonqualified defined benefit retirement plan

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2013 for the nonqualified defined benefit retirement plan are (in thousands):

Net actuarial loss	$	25
Past service cost		29
	$	54

Key weighted-average assumptions to determine benefit obligation and net periodic pension costs

Key weighted-average assumptions used to determine the benefit obligation and net periodic pension costs for the nonqualified defined benefit retirement plan for the years ended December 31 were as follows:

	2012			2011			2010
Benefit obligation:
Discount rate		4.05	%		4.40	%		5.54	%
Salary increase rate		3.00	%		3.00	%		3.00	%
Net periodic pension cost:
Discount rate		4.40	%		5.54	%		5.92	%
Salary increase rate		3.00	%		3.00	%		4.00	%
Amortization period in years		2.98			6.92/3.48			7.90

Expected Benefit Payments

The nonqualified defined benefit retirement plan is not funded.  Therefore no contributions will be made in 2012.  Estimated future benefit payments reflecting expected future service for the years ended after December 31, 2012 are (in thousands):

2013	15
2014	15
2015	54
2016	59
2017	112
2018-2022	559