Pension Plan

6 Months Ended

Jun. 30, 2011

Pension Plan

Pension Plan

Note 8 – Pension Plan

The Company's defined benefit pension plan was frozen effective January 1, 2004, whereby no additional years of service will accrue to participants, unless the pension plan is reinstated at a future date. The pension plan covered substantially all of the Company's employees at the time. The benefits for each employee were based on years of service and a percentage of the employee's qualifying compensation during the final years of employment. The Company's funding policy was and is to contribute annually the amount necessary to satisfy the Internal Revenue Service's funding standards. Contributions to the pension plan, prior to freezing the plan, were intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. As a result of the Pension Protection Act of 2006 (the "Protection Act"), the Company will be required to contribute amounts in future years to fund any shortfalls. The Company has evaluated the provisions of the Protection Act as well as the Internal Revenue Service's funding standards to develop a plan for funding in future years. The Company made a contribution totaling $1.0 million in both March 2011 and March 2010 and continues to evaluate future funding amounts.

Net periodic benefit costs totaling $150 thousand and $100 thousand were recorded, respectively, for the three-months ended June 30, 2011 and 2010. Net periodic benefit costs totaling $299 thousand and $200 thousand were recorded, respectively, for the six months ended June 30, 2011 and 2010.