Defined Benefit Pension Plan

9 Months Ended

Sep. 30, 2011

Defined Benefit Pension Plan [Abstract]

Defined Benefit Pension Plan

Note 8.                                Defined Benefit Pension Plan

The Company has a noncontributory, defined benefit pension plan covering substantially all full-time employees of Middleburg Bank and Middleburg Trust Company.  Benefit accruals and eligibility for the plan were frozen as of September 30, 2009. This had the effect of reducing the Projected Benefit Obligation by an estimated $1,577,000, which was recorded as a curtailment gain in 2009.  The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act.

The defined benefit pension plan has been amended to be terminated and the amendment has been submitted to the Internal Revenue Service (the “IRS”) for approval. The Pension Benefit Guaranty Corporation (“the “PBGC”) was notified of the termination and the PBGC review period expired without comment.  Although the IRS application for termination approval is in process, and it is the intention of the Company to distribute the assets of the plan to participants during the fourth quarter of 2011, the date of IRS approval is unknown and there can be no assurance that the plan will be terminated or that assets will be completely distributed during 2011.

The table below reflects the components of the Net Periodic Benefit Cost related to the Company's defined benefit pension plan for the indicated periods.

	Nine months ended September 30,
	2011			2010
	(In Thousands)
Interest cost	$	137		$	240
Expected return on plan assets		(44	)		(291	)
Amortization of unrecognized  net actuarial  loss		914			--
Net periodic benefit cost (income)	$	1,007		$	(51	)

	Three months ended September 30,
	2011			2010
	(In Thousands)
Interest cost	$	46		$	80
Expected return on plan assets		(15	)		(97	)
Amortization of unrecognized  net actuarial  loss		305			--
Net periodic benefit cost (income)	$	336		$	(17	)