Note 10 - Retirement Plans

12 Months Ended

Dec. 31, 2013

Retirement Plan [Member]

Note 10 - Retirement Plans [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

10.Retirement Plans

The Company maintains a salary savings plan that covers substantially all of its employees. The Company matches voluntary tax deferred employee contributions at 50% of eligible deferrals up to a maximum of 6% of the participants’ compensation. The Company may, at the discretion of its Board, contribute an additional amount based upon a percentage of covered employees’ salaries. The Company did not make a discretionary contribution during 2013, 2012, or 2011. Discretionary contributions are allocated among participants in the ratio that each participant’s compensation bears to all participants’ compensation. Eligible employees are presented with various investment alternatives related to the salary savings plan. Those alternatives include various stock and bond mutual funds ranging from traditional growth funds to more stable income funds as well as an option to invest in bank certificates of deposits. Company shares are not an available investment alternative in the salary savings plan. The total retirement plan expense for 2013, 2012, and 2011 was $528 thousand, $485 thousand, and $470 thousand, respectively.

In connection with its acquisition of Citizens Northern, the Company acquired nonqualified supplemental retirement plans for certain key employees. Benefits provided under these plans are unfunded, and payments to plan participants are made by the Company.

The following schedules set forth a reconciliation of the changes in the supplemental retirement plans’ benefit obligation and funded status for the years ended December 31, 2013 and 2012.

(In thousands)	2013			2012
Change in Benefit Obligation
Obligation at beginning of year	$	741		$	706
Service cost		28			26
Interest cost		29			29
Actuarial loss		3			8
Benefit payments		(27	)		(28	)
Obligation at end of year	$	774		$	741

The following table provides disclosure of the net periodic benefit cost as of December 31 for the years indicated.

(In thousands)	2013			2012
Service cost	$	28		$	26
Interest cost		29			29
Recognized net actuarial loss		12			8
Net periodic benefit cost	$	69		$	63
Major assumptions:
Discount rate used to determine net period benefit cost		4.03	%		4.39	%
Discount rate used to determine benefit obligation at year end		4.06			4.03

The following table presents estimated future benefit payments in the period indicated.

(In thousands)	Supplemental Retirement Plan
2014	$	36
2015		36
2016		36
2017		36
2018		36
2019-2023		287
Total	$	467

Amounts recognized in accumulated other comprehensive income as of December 31, 2013 and 2012 are as follows:

(In thousands)	2013		2012
Unrecognized net actuarial loss	$	148	$	157
Total	$	148	$	157

The estimated cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is as follows:

(In thousands)	Supplemental Retirement Plan
Unrecognized net actuarial gain	$	(4	)
Total	$	(4	)

Postretirement Medical Benefits [Member]

Note 10 - Retirement Plans [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

12. Postretirement Medical Benefits

Prior to 2003, the Company provided lifetime medical and dental benefits upon retirement for certain employees meeting the eligibility requirements as of December 31, 1989 (“Plan 1”). During 2003, the Company implemented an additional postretirement health insurance program (“Plan 2”). Under Plan 2, any employee meeting the service requirement of 20 years of full time service to the Company and is at least age 55 years of age upon retirement is eligible to continue their health insurance coverage. Under both plans, retirees not yet eligible for Medicare have coverage identical to the coverage offered to active employees. Under both plans, Medicare-eligible retirees are provided with a Medicare Advantage plan. The Company pays 100% of the cost of Plan 1. The Company and the retirees each pay 50% of the cost under Plan 2. Both plans are unfunded.

The following schedules set forth a reconciliation of the changes to the benefit obligation and funded status of the plans for the years ended December 31, 2013 and 2012.

(In thousands)	2013			2012
Change in Benefit Obligation
Obligation at beginning of year	$	15,935		$	14,294
Service cost		630			617
Interest cost		551			608
Actuarial (gain) loss		(4,277	)		674
Participant contributions		97			85
Benefit payments		(348	)		(343	)
Obligation at end of year	$	12,588		$	15,935

The following table provides disclosure of the net periodic benefit cost as of December 31 for the years indicated.

(In thousands)	2013			2012
Service cost	$	630		$	617
Interest cost		551			608
Amortization of transition obligation		-			102
Recognized prior service cost		257			257
Amortization of net actuarial loss		-			56
Net periodic benefit cost	$	1,438		$	1,640
Major assumptions:
Discount rate used to determine net periodic benefit cost		4.03	%		4.39	%
Discount rate used to determine benefit obligation as of year end		4.93			4.03
Retiree participation rate (Plan 1)		100.00			100.00
Retiree participation rate (Plan 2)		72.00			72.00

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. For measurement purposes, the rate of increase in pre-Medicare medical care claims costs was 8% and 7% for 2014 and 2015, respectively, then grading down by .5% annually to 5% for 2019 and thereafter. For dental claims cost, it was 5% for 2014 and thereafter. A 1% change in the assumed health care cost trend rates would have the following incremental effects:

(In thousands)	1% Increase		1% Decrease
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost	$	252	$	(194	)
Effect on accumulated postretirement benefit obligation		2,444		(1,934	)

The following table presents estimated future benefit payments in the period indicated.

(In thousands)	Postretirement Medical Benefits
2014	$	340
2015		355
2016		377
2017		422
2018		461
2019-2023		2,909
Total	$	4,864

Amounts recognized in accumulated other comprehensive income as of December 31, 2013 and 2012 are as follows:

(In thousands)	2013			2012
Unrecognized net actuarial (gain) loss	$	(1,190	)	$	3,087
Unrecognized prior service cost		383			639
Total	$	(807	)	$	3,726

The estimated costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are as follows:

(In thousands)	Postretirement Medical Benefits
Unrecognized prior service cost	$	207
Unrecognized net actuarial gain		(63	)
Total	$	144