Retirement Plans

12 Months Ended

Dec. 31, 2012

Retirement Plans [Abstract]

Retirement Plans

Note 14 – Retirement plans

Defined contribution benefit plan.The Company adopted a 401(k) defined contribution plan on October 1, 2000, which is administered by the Virginia Bankers’ Association. Participants have the right to contribute up to a maximum of 19% of pretax annual compensation or the maximum allowed under Section 401(g) of the Internal Revenue Code, whichever is less.  In 2012 and 2011, the Company did not make any contributions to the plan.

Supplemental Executive Retirement Plan.  A Supplemental Executive Retirement Plan (SERP) was established to provide participating executives (as determined by the Company’s Board of Directors) with benefits that cannot be provided under the 401(k) as a result of limitations imposed by the Internal Revenue Code. The SERP will also provide benefits to eligible employees or their survivors , as applicable, if they die, retire, or are terminated under certain circumstances.  SERP expense totaled $129,000 and $101,000 for the years ended December 31, 2012 and 2011, respectively.

The Company funds the plan through a modified endowment contract.  Income recorded for the plan represents life insurance income as recorded based on the projected increases in cash surrender values of life insurance policies. As of December 31, 2012 and 2011, the life insurance policies had cash surrender values of approximately $8,931,000 and $8,609,000, respectively.