Retirement Plans

6 Months Ended

Jun. 30, 2011

Retirement Plans

Retirement Plans

Note 14. Retirement Plans

The Company has a profit-sharing retirement plan with an Internal Revenue Code Section 401(k) feature covering eligible employees. Employer contributions are made annually into a trust fund and are allocated to participants based on their salaries. The profit sharing contribution requirement is based on a percentage of annual operating income subject to a percentage of salary cap. Eligible employees may contribute up to 50 percent of their salary to the 401(k) plan, but not more than the maximum allowed under Internal Revenue Service regulations. The Company matches 50 percent of the first 6 percent of covered compensation. The Company recorded total profit sharing and matching contribution expense of $4.5 million and $9.0 million for the three and six months ended June 30, 2011 respectively. Profit sharing and matching contribution expense was $2.3 million and $4.4 million for the same periods in 2010, respectively.

The Company has a Supplemental Executive Retirement Plan (“SERP”) for one of its executive officers.  The SERP meets the definition of a pension plan under ASC Topic 960, Plan Accounting — Defined Benefit Pension Plans.  At June 30, 2011, there was a $6.6 million unfunded pension liability related to the SERP.  Expense for the three and six months ended June 30, 2011 was $0.2 million and $0.5 million, respectively. Expense for the three and six months ended June 30, 2010 was $0.2 million and $0.4 million, respectively.

There is also a SERP covering three former executives of the Pacific Bank, which the Company acquired in 2000.  As of June 30, 2011, there was an unfunded pension liability for this SERP of $2.4 million.  Expense for the three months ended June 30, 2011 and 2010 was insignificant. Expense for the six months ended June 30, 2011 and 2010 was $0.3 million and $0.1 million, respectively.

The Company does not provide any other post-retirement employee benefits beyond the profit-sharing retirement plan and the SERPs.