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Employee Benefits
12 Months Ended
Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]  
Employee Benefits
EMPLOYEE BENEFITS
 
401(k) and Profit Sharing Plan
 
The Bank has established a 401(k) and profit sharing plan.  The 401(k) plan covers substantially all employees who have completed a six-month period in which they are credited with at least 1,000 hours of service.  Participants in the profit sharing plan are eligible to receive employer contributions after completion of two years of service.  Bank contributions to the profit sharing plan are determined at the discretion of the Board of Directors.  Participants are automatically vested 100% in all employer contributions.  The Bank contributed $150,000 to the profit sharing plan in 2011. The Bank did not contribute to the profit sharing plan in 2010 or 2009.  
Additionally, the Bank may elect to make a matching contribution to the participants’ 401(k) plan accounts.  The amount to be contributed is announced by the Bank at the beginning of the plan year.  For the years ended December 31, 2011, 2010, and 2009, the Bank made a 100% matching contribution on all deferred amounts up to 3% of eligible compensation and a 50% matching contribution on all deferred amounts above 3% to a maximum of 5%.  For the years ended December 31, 2011, 2010, and 2009, the Bank made matching contributions totaling $352,000, $336,000, and $301,000, respectively.
 
Deferred Compensation Plan
 
The Bank has a nonqualified Deferred Compensation Plan which provides directors with an unfunded, deferred compensation program.  Under the plan, eligible participants may elect to defer some or all of their current compensation or director fees.  Deferred amounts earn interest at an annual rate determined by the Board of Directors (5.25% at December 31, 2011).  At December 31, 2011 and 2010, the total net deferrals included in accrued interest payable and other liabilities were $2,297,000 and $2,151,000, respectively.
 
In connection with the implementation of the above plan, single premium universal life insurance policies on the life of each participant were purchased by the Bank, which is beneficiary and owner of the policies.  The cash surrender value of the policies totaled $3,205,000, $3,106,000 and $3,006,000 at December 31, 2011, 2010, and 2009, respectively.  Income recognized on these policies, net of related expenses, for the years ended December 31, 2011, 2010, and 2009 was $98,000, $100,000, and $97,000, respectively.
 
Salary Continuation Plans
 
The Board of Directors approved salary continuation plans for certain key executives during 2002 and subsequently amended the plans in 2006.  Under these plans, the Bank is obligated to provide the executives with annual benefits for fifteen years after retirement.  These benefits are substantially equivalent to those available under split-dollar life insurance policies purchased by the Bank on the life of the executives.  The expense recognized under these plans for the years ended December 31, 2011, 2010, and 2009 totaled $341,000, $450,000, and $407,000, respectively.  Accrued compensation payable under the salary continuation plan totaled $3,764,000, $3,574,000 and $3,201,000 at December 31, 2011, 2010, and 2009, respectively
 
In connection with these plans, the Bank purchased single premium life insurance policies with cash surrender values totaling $4,393,000, $4,366,000 and $4,214,000 at December 31, 2011, 2010, and 2009, respectively.  Income recognized on these policies, net of related expense, for the years ended December 31, 2011, 2010, and 2009 totaled $144,000, $152,000, and $155,000, respectively.
 
In connection with the acquisition of Service 1st Bank, the Bank assumed a liability for the estimated present value of future benefits payable to former key executives of Service 1st.  The liability relates to change in control benefits associated with Service 1st’s salary continuation plans.  The benefits are payable to the individuals when they reach retirement age.  At December 31, 2011 and 2010, the total amount of the liability was $1,694,000 and $1,636,000, respectively.  Expense recognized by the Bank in 2011, 2010 and 2009 associated with these plans was $98,000, $95,000 and $22,000, respectively.  These benefits are substantially equivalent to those available under split-dollar life insurance policies acquired.  These single premium life insurance policies had cash surrender values totaling $4,057,000, $3,918,000 and $3,778,000 at December 31, 2011, 2010, and 2009, respectively.  Income recognized on these policies, net of related expenses, for the year ended December 31, 2011, 2010, and 2009 was $140,000, $140,000 and $139,000, respectively.
 
The current annual tax-free interest rate on all life insurance policies is 5.22%.