EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFITS

NOTE 17—EMPLOYEE BENEFITS

The Company has adopted a 401(k) savings investment plan which allows employees to defer certain amounts of compensation for income tax purposes under Section 401(k) of the Internal Revenue Code. Essentially all eligible employees may elect to defer and contribute up to statutory limits. The Company may, at its discretion, make matching contributions, the total of which may not exceed 15% of eligible compensation. For the years ending December 31, 2012, 2011 and 2010, the Company made matching contributions of $394,000, $350,000 and $319,000, respectively, to the plan.

As part of the mergers in 2007, the Company acquired life insurance to support life insurance benefits for several key employees and salary continuation benefits for certain executives. As of December 31, 2012 and 2011, the cash surrender value of the life insurance was $13.1 million and $12.7 million, respectively. As of December 31, 2012 and 2011, the Company recognized a liability for salary continuation benefits of $938,000 and $752,000, respectively. Payments under the salary continuation plan commence when the respective executive reaches the age of 65 and continue for a period up to 20 years. For the years ending December 31, 2012, 2011 and 2010, salary continuation expense was $186,000, $169,000 and $112,000, respectively.

The Company had entered into deferred compensation agreements with several of its key employees. Under the agreement, benefits were to be paid in a lump sum or equal monthly installments for a period up to five years upon the employee’s termination with the Company or within 30 days of the employee’s death. The Company also had deferred compensation arising through deferred severance payments to two former executives. As of December 31, 2011, a liability of $282,000 for deferred compensation, including deferred severance was included in other liabilities in the accompanying consolidated balance sheets. This liability was eliminated by cash payments to current and former employees in 2012.

The Company also had established and sponsored an irrevocable trust commonly referred to as a “Rabbi Trust” related to severance payments due to a former executive. The trust assets are consolidated in the Company’s balance sheets in other assets and the related liability is included in other liabilities. The asset and liability balances related to this trust as of December 31, 2011 was 177,000. The assets and liabilities of the trust were eliminated by cash payments to a former employee in 2012.