Employee Benefits

3 Months Ended

Mar. 31, 2013

Employee Benefits [Abstract]

Employee Benefits

Note 9. Employee Benefits

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Components of Net Periodic Benefit Cost for the Three Months Ended March 31,

	Pension Benefits						Supplemental Insurance/ Retirement Plan
	2013			2012			2013		2012
				(In thousands)
Service cost	$	299		$	274		$	381	$	356
Interest		314			324			267		231
Expected return on plan assets		(470	)		(410	)		—		—
Recognized prior service cost (benefit)		(26	)		(26	)		29		29
Recognized net actuarial losses		158			184			129		84
Net periodic benefit cost	$	275		$	346		$	806	$	700

Contributions

The Company currently intends to contribute $1,800,000 to the Pension Plan in 2013. As of March 31, 2013, $450,000 of the contribution had been made. The Company expects to contribute an additional $1,350,000 by the end of the year. Also, an additional $2,819,000 was contributed to the Pension Plan during the first quarter of 2013 to reduce variable annual premiums payable to Pension Benefit Guarantee Corporation.