Note 12.Pension Plan

The Company has a noncontributory nonqualified defined benefit pension plan (“Pension Plan”) covering certain eligible employees. The Company’s Pension Plan provides retirement benefits under pension trust agreements. The benefits are based on years of service and the employee’s compensation during the highest three consecutive years during the last 10 years of employment.

Net periodic defined benefit pension expense for the three and nine months ended September 30, 2014 and 2013 included the following components:


	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands)	2014		2013		2014		2013
Service cost	$	15	$	19	$	45	$	56
Interest cost		155		133		466		399
Amortization of prior service cost		22		22		66		67
Amortization of actuarial loss		32		122		96		367
Net periodic benefit cost	$	224	$	296	$	673	$	889

The Company has unfunded pension plan obligations of $14.3 million as of September 30, 2014 compared to $14.5 million at December 31, 2013. The Company plans to fund the pension plan obligations through existing Company owned life insurance policies.