The Corporation sponsors several qualified and nonqualified pension and other postretirement plans for certain of its employees. The net periodic pension cost is based on estimated values provided by an outside actuary. The components of net periodic benefit cost are as follows:



	Pension Benefits
	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Components of Net Periodic Pension Cost
Service Cost	$	585		$	1,799		$	1,170		$	3,598
Interest Cost	2,632			2,965			5,264			5,930
Expected return on assets	(2,960		)	(3,034		)	(5,920		)	(6,068		)
Amortization of unrecognized prior service costs	117			97			234			194
Cumulative net loss	1,174			2,593			2,348			5,186
Net periodic pension cost	$	1,548		$	4,420		$	3,096		$	8,840



	Postretirement Benefits
	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Components of Net Periodic Postretirement Cost
Service Cost	$	25		$	19		$	50		$	38
Interest Cost	130			174			260			348
Amortization of unrecognized prior service costs	(117		)	(117		)	(234		)	(234		)
Cumulative net loss	67			72			134			144
Net periodic postretirement cost	$	105		$	148		$	210		$	296

Effective December 31, 2012, the qualified defined benefit pension plan was frozen resulting in no benefits accruing after December 31, 2012. Employees will have an accrued benefit which will be paid upon retirement, or for deferred vested participants, at the time they request and are eligible for their pension benefit.

The Corporation also maintains a retirement savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended, covering substantially all full-time and part-time employees beginning in the quarter following three months of continuous employment. The savings plan was approved for non-vested employees in the defined benefit pension plan and new hires as of January 1, 2007. Starting January 1, 2013, the employer's matching contribution to the savings plan increased to 100% on the first 3% and then 50% on the next 2% of the employee's qualifying salary. Matching contributions vest in accordance with plan specifications.

Citizens Acquisition

The Corporation is in the process of transitioning the legacy Citizens employees to the Corporation's benefit plans. Citizens defined benefit pension plan has been frozen since 2006 and remains frozen. Citizens also had an unfunded nonqualified supplemental benefit plan that provided retirement benefits to designated executive officers. Benefits that become payable under the nonqualified plan will be paid by the Corporation. Citizens had a postretirement benefit plan which provided postretirement health and dental care to full-time employees who retired with eligibility for coverage based on historical plan terms.

Net periodic benefits and costs for the Citizens sponsored plans including the following components for the quarter ended June 30, 2013:



	Pension Benefits
	Three months ended June 30, 2013
Interest Cost	$	795
Expected return on assets	(1,096		)
Net periodic pension benefit	$	(301	)



	Postretirement Benefits
	Three months ended June 30, 2013
Interest Cost	$	16
Net periodic postretirement cost	$	16

Citizens sponsored an employee savings plan under Section 401(k) of the Internal Revenue Code that covered substantially all legacy Citizens employees. This plan continues to operate as before and will admit new participants if those participants meet the eligibility conditions and perform services at a legacy Citizen location. Contributions to the legacy Citizens 401(k) plan are matched 50% on the first 2% of salary deferred and 25% on the next 6% deferred.