SELF FUNDED HEALTH INSURANCE PLAN

12 Months Ended

Dec. 31, 2011

Self Funded Health Insurance Plan

SELF-FUNDED HEALTH INSURANCE PLAN

NOTE 15 SELF-FUNDED HEALTH INSURANCE PLAN

PSB has established an employee medical benefit plan to self-insure claims up to $55 per year for each individual with no stop-loss per year for participants in the aggregate. Coverages will continue at the same level in 2012. PSB and its covered employees contribute to the fund to pay the claims and stop-loss premiums. Medical benefit plan costs are expensed as incurred. The liability recognized for claims incurred but not yet paid was $68 and $78 as of December 31, 2011 and 2010, respectively. Health and dental insurance expense recorded in 2011, 2010, and 2009, was $852, $941,and $882, respectively.