5. Employee Benefit Plan

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

5. Employee Benefit Plan

The Bank has a qualified noncontributory defined benefit pension plan that covers substantially all of its employees.  The benefits are primarily based on years of service and earnings.  The Bank contributed $750,000 to the plan in the first quarter of 2012 and does not anticipate additional contributions for the 2012 plan year.  The following is a summary of net periodic pension costs for the six-month and three-month periods ended June 30, 2012 and 2011.

	Six Months Ended						Three Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Service cost	$	259,318		$	222,710		$	129,659		$	111,355
Interest cost		163,962			160,756			81,981			80,378
Expected return on plan assets		(270,034	)		(252,218	)		(135,017	)		(126,109	)
Amortization of net obligation at transition		-			-			-			-
Amortization of prior service cost		(7,618	)		(3,886	)		(3,809	)		(1,943	)
Amortization of net (gain) or loss		86,610			31,922			43,305			15,961
Net periodic pension cost	$	232,238		$	159,284		$	116,119		$	79,642