Employee Benefits

12 Months Ended

Dec. 31, 2011

Employee Benefits

Note 20: Employee Benefits

The Company has a retirement savings 401(k) plan in which substantially all employees may participate. The contributions are discretionary and determined annually. The Company matches employees' contributions at the following rates: 100 percent of participant contributions up to 3% and 50 percent of participant contributions from 3-5%, not to exceed a maximum of 4% of their compensation. The Company’s expense for the plan was $524,000, $539,000 and $716,000 for 2011, 2010 and 2009.

The Company has a supplemental retirement plan and deferred compensation arrangements for the benefit of certain officers. The Company also has deferred compensation arrangements with certain directors whereby, in lieu of currently receiving fees, the directors or their beneficiaries will be paid benefits for an established period following the director’s retirement or death. These arrangements are informally funded by life insurance contracts which have been purchased by the Company. The Company records a liability for these vested benefits based on the present value of future payments. The Company’s expense for the plan was $693,000, $823,000 and $857,000 for 2011, 2010 and 2009.

The Company has an ESOP covering substantially all of its employees. At December 31, 2011, 2010 and 2009, the Company had 63,570, 95,354 and 127,138 unearned ESOP shares with a fair value of $449,000, $887,000 and $760,000. Shares are released to participants proportionately as ESOP debt is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares are used to repay the loan. Compensation expense is recorded equal to the fair market value of the stock committed-to-be-released when contributions, which are determined annually by the Board of Directors of the Company and Bank, are made to the ESOP. Expense under the ESOP for 2011, 2010 and 2009 was $268,000, $233,000 and $215,000. The following table provides information on ESOP shares at December 31:

	2011		2010		2009
Allocated shares		379,704		361,195		345,195
Suspense shares		63,570		95,354		127,138
Committed-to-be released shares		31,783		31,783		31,783

The Company had a Recognition and Retention Plan (RRP) for the award of up to 232,784 shares of the common stock of the Company to directors and executive officers. Common stock awarded under the RRP vested over a three or five-year period commencing with the date of the grants. As of December 31, 2009 all shares were vested and no new plans were approved.

The total fair value of shares vested during the year ended December 31, 2009, was $22,000.