Retirement Benefits

12 Months Ended

Dec. 31, 2011

Retirement Benefits [Abstract]

Retirement Benefits

Retirement Benefits

The Company has an unfunded noncontributory defined benefit plan that covers its chief executive officer and chairman of the board. The plan provides that the benefits payments shall commence on the earliest of (i) January 2, 2014, (ii) the date of death or (iii) a change in control of the Company. The discount rate used to derive the projected benefit obligation and related retirement expense was 4.36% in 2011 and 5.24% in 2010. The discount rate assumption used to determine the benefit obligation is based on a yield curve approach. Under this approach, a weighted average yield is determined from a hypothetical portfolio of AA rated bonds. Following is a summary of the projected benefit obligation as of December 31, 2011 and 2010:

(Dollars in thousands)	2011		2010
Projected benefit obligation:
Beginning of year	$	51,828	$	45,889
Interest cost	2,716		2,675
Actuarial loss	2,243		3,264
End of year	$	56,787	$	51,828

Following is a summary of the amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2011 and 2010:

(Dollars in thousands)	2011		2010
Net actuarial loss	$	10,007	$	9,093
Prior service cost	12,035		15,059
Net pension asset	$	22,042	$	24,152

The components of net periodic pension benefit cost are as follows:

(Dollars in thousands)	2011		2010		2009
Components of net periodic benefit cost:
Interest cost	$	2,716	$	2,675	$	2,631
Amortization of unrecognized:
Prior service costs	3,023		3,023		3,023
Net actuarial loss	1,330		424		—
Net periodic pension cost	$	7,069	$	6,122	$	5,654

The changes in plan assets and projected benefit obligation recognized in other comprehensive income (loss) are as follows:

(Dollars in thousands)	2011			2010
Changes in plan assets and projected benefit obligation:
Net actuarial loss	$	2,243		$	3,264
Amortization of:
Net actuarial loss	(1,330		)	(424		)
Prior service costs	(3,023		)	(3,023		)
Total recognized in other comprehensive income (loss)	$	(2,110	)	$	(183	)

The estimated prior service cost and net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into periodic benefit cost during 2012 are $2,197,000 and $3,023,000, respectively.