Pension/ESOP Plan

6 Months Ended

Jun. 30, 2011

Supplemental Retirement Benefit Agreement [Abstract]

Pension/ESOP Plan

7.  Pension/ESOP Plan

In 2001, the Bank adopted a 401(k) retirement plan and discontinued its “SEP” plan, covering all employees after completing a year of service.  The Bank contributes up to a 6% match of the employee's contribution based upon Board approval.  Plan contributions (in thousands) for the six months ended June 30, 2011 and 2010 were $39 and $33, respectively.

The Company established an ESOP and loaned the ESOP $524 (in thousands) in July 2002 to purchase 91,267 shares (pre-conversion shares of 52,371) of common stock, which amounted to 3.8% of the outstanding shares at such date.  The remaining balance (in thousands) due of $64 plus interest is payable (in thousands) by June 30, 2012.  The quarterly payments (in thousands) are $17 and annually aggregate $66.  Additionally the ESOP was extended a loan in 2011 in the amount of (in thousands) $558, to purchase 55,772 shares of common stock in the second-step conversion. (See Note 14). The remaining balance (in thousands) due of $547 at $38 (in thousands) per year including interest is payable over approximately twenty years. The Bank made contributions to the ESOP to enable it to make the note payments (in thousands) of $52 and $33, respectively, during the six months ended June 30, 2011 and 2010, respectively, which is included in salaries and benefits on the income statement.  As the notes are paid, the shares will be released and allocated to the participants of the ESOP.  As of June 30, 2011, 83,534 of the shares had been released.  The market value of the unreleased ESOP shares (63,505) at June 30, 2011 was approximately $826,000.