Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

14. Employee Benefit Plans

401(k)/Profit Sharing Plan

The Company has a 401(k)/profit sharing plan and the majority of employees participate in the plan. Employees may contribute pre-tax contributions to the 401(k)/profit sharing plan up to the maximum amount allowed by federal tax laws. The Company makes matching contributions of up to 4% of an employee's eligible compensation. The Company may make additional matching contributions subject to the discretion of the board of directors. For the years ended December 31, 2012, 2011, and 2010, these amounted to 3%, 3%, and 2%, respectively, of pre-tax compensation. For the years ended December 31, 2012, 2011 and 2010, expenses under the 401(k)/Profit Sharing plan amounted to $1.2 million, $1.1 million, and $1.0 million, respectively.

Supplemental Executive Retirement Plan and Other Postretirement Benefit Plan

The Company sponsors unfunded, non-qualified supplemental executive retirement plans ("SERP") for certain officers. These agreements are designed to make up the shortfall (when compared to a non-highly compensated employee) in replacing income at retirement due to Internal Revenue Service compensation and benefit limits under the 401(k) plan and Social Security. With a SERP in place, participants should be able to replace 65 - 75% of their final average compensation. For those eligible for benefits, the SERP provides for a minimum 15-year guaranteed benefit for all vested participants. In addition, the Company provides medical and life insurance to certain eligible retired employees under the other postretirement benefit plan.

The following table summarizes changes in the benefit obligation and plan assets for (i) the supplemental executive retirement plan and (ii) the other postretirement benefit plan as of December 31, 2012 and 2011:

	SERP						Other Postretirement Benefits
	2012			2011			2012			2011
Benefit obligations:
Beginning of year	$	8,868		$	8,102		$	3,187		$	2,700
Service cost		269			232			70			65
Interest cost		408			431			148			150
Actuarial loss		1,334			615			275			417
Benefits paid		(533	)		(512	)		(144	)		(145	)
End of year		10,346			8,868			3,536			3,187

	SERP						Other Postretirement Benefits
	2012			2011			2012			2011
Fair value of plan assets:
Beginning of year		-			-			-			-
Employer contributions		533			512			144			145
Benefits paid		(533	)		(512	)		(144	)		(145	)
End of year		-			-			-			-
Funded status at end of year, included in other liabilities	$	10,346		$	8,868		$	3,536		$	3,187
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	3,172		$	1,953		$	983		$	739
Prior service cost		63			81			-			-
Total	$	3,235		$	2,034		$	983		$	739

The accumulated benefit obligation for the SERP was $7.9 million and $7.2 million at December 31, 2012 and 2011, respectively. In 2013, approximately $224,000 and $19,000 in net actuarial losses and prior service cost, respectively, are expected to be recognized as components of net period benefit cost for the SERP, and approximately $47,000 in net actuarial loss is expected to be recognized for the other postretirement benefit plan.

The components of net period benefit cost and other amounts recognized in other comprehensive income were as follows:

	SERP									Other Postretirement Benefits
	2012			2011			2010			2012			2011			2010
Net period benefit cost
Service cost	$	269		$	232		$	181		$	70		$	65		$	60
Interest cost		408			431			427			148			150			143
Recognized net actuarial loss		115			67			30			31			5			2
Recognized prior service cost		18			19			19			-			-			-
Net period benefit cost		810			749			657			249			220			205
Changes in funded status recognized in other comprehensive loss, before taxes
Net actuarial loss		1,334			615			361			275			417			50
Reclassifications to net period benefit cost:
Amortization of net unrecognized actuarial loss		(115	)		(67	)		(30	)		(31	)		(5	)		(2	)
Amortization of prior service cost		(18	)		(19	)		(19	)		-			-			-
Total recognized in other comprehensive loss		1,201			529			312			244			412			48
Total recognized in net period benefit cost and other comprehensive loss	$	2,011		$	1,278		$	969		$	493		$	632		$	253

The following assumptions were used in determining benefit obligations and net period benefit costs:

	SERP									Other Postretirement Benefits
	2012			2011			2010			2012			2011			2010
Weighted-average assumptions as of end of year
Discount rate for benefit obligation		3.75	%		4.75	%		5.50	%		4.05	%		4.75	%		5.45	%
Discount rate for net period benefit cost		4.75	%		5.50	%		5.75	%		4.75	%		5.45	%		5.70	%
Rate of compensation increase		4.50	%		4.50	%		4.50	%		-			-			-
Health care cost trend rate assumed for future years		-			-			-			7.00	%		7.00	%		7.00	%

A 1.0% increase or decrease in the assumed health care cost trend rate would not have a material impact on the accumulated postretirement benefit obligation due to a built-in cap on annual benefits.

In 2013, the expected contribution is $531,000 for the SERP and $154,000 for the other postretirement benefit plan. The expected benefit payments for the next ten years are presented in the following table:

	SERP		Other Postretirement Benefits
2013	$	531	$	154
2014		511		158
2015		396		161
2016		404		158
2017		388		157
2018 - 2022		2,277		889

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act (the "Act") was signed into law. The Act introduces a prescription drug benefit under Medicare as well as a federal subsidy to sponsors of retiree health care plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. The effects of the Act on the accumulated projected benefit obligation or net period post-retirement benefit cost are not reflected in the financial statements or accompanying notes because the Company has not concluded whether the benefits provided by the plan are actuarially equivalent to Medicare Part D under the Act.