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Post-Retirement Benefits
12 Months Ended
Dec. 31, 2012
Post-Retirement Benefits  
Post-Retirement Benefits

Note 18—Post-Retirement Benefits

        Post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to those employees of the Company eligible for early retirement under the pension plan on or before December 31, 1993, and former employees who are currently receiving benefits. The plan was unfunded at December 31, 2012, and the liability for future benefits has been recorded in the consolidated financial statements.

        The following sets forth the plan's funded status and amounts recognized in the Company's accompanying consolidated financial statements:

 
  December 31,  
(Dollars in thousands)
  2012   2011  

Change in benefit obligation:

             

Benefit obligation at beginning of year

  $ 555   $ 512  

Interest cost

    22     26  

Actuarial (gain) loss

    (4 )   75  

Benefits paid

    (55 )   (58 )
           

Benefit obligation at end of year

    518     555  
           

Change in plan assets:

             

Fair value of plan assets at beginning of year

         

Employer contribution

    55     58  

Benefits paid

    (55 )   (58 )
           

Fair value of plan assets at end of year

         
           

Funded status

  $ (518 ) $ (555 )
           

        Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows:

 
  Years Ended
December 31,
 
 
  2012   2011   2010  

Weighted-average assumptions used to determine benefit obligation at December 31:

                   

Discount rate

    3.80 %   4.20 %   5.40 %

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:

                   

Discount rate

    4.20 %   5.40 %   6.00 %

Assumed health care cost trend rates at December 31:

                   

Health care cost trend rate assumed for next year

    5.00 %   5.00 %   5.00 %

        Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows:

 
  Years Ended
December 31,
 
(Dollars in thousands)
  2012   2011   2010  

Interest cost

  $ 22   $ 26   $ 32  

Amortization of transition obligation

    26     32     31  

Recognized net actuarial loss

    11     4     6  
               

Net periodic benefit cost

    59     62     69  
               

Net (gain) loss

    (4 )   75     (26 )

Amortization of transition obligation

    (26 )   (32 )   (31 )

Amortization of loss

    (11 )   (4 )   (6 )
               

Total amount recognized in other comprehensive income

    (41 )   39     (63 )
               

Total recognized in net periodic benefit cost and other comprehensive income

  $ 18   $ 101   $ 6  
               

        The estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $11,000.

        Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement benefit plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects at the end of 2012:

 
  One-Percentage
Point
 
(Dollars in thousands)
  Increase   Decrease  

Effect on total of interest cost

  $ 2   $ (2 )

Effect on postretirement benefit obligation

    34     (31 )

        Estimated future benefit payments (including expected future service as appropriate):

(Dollars in thousands)
   
 

2013

  $ 51  

2014

    50  

2015

    50  

2016

    49  

2017

    47  

2018 - 2022

    6  
       

 

  $ 253  
       

        The Company expects to contribute approximately $51,000 to the post-retirement medical plan in 2013.