Note 13 - Benefit Plans

6 Months Ended

Jun. 30, 2013

Pension and Other Postretirement Benefits Disclosure [Text Block]

Pension and Other Postretirement Benefits Disclosure [Text Block]

13.   Benefit Plans 

401(k) Plan

From January 1, 2012 through July 1, 2013, the Company suspended its regular ongoing matching of employee (which we refer to as “teammate”) contributions to The Palmetto Bank 401(k) Retirement Plan (the “401(k) Plan”), and replaced it with a discretionary contribution based on attaining an appropriate level of profitability. No discretionary contributions were made during the three or six months ended June 30, 2013 and June 30, 2012.

Effective July 1, 2013, the Company re-instated an employer match of teammate contributions at a rate of $0.10 per dollar up to 6% of a teammate’s eligible compensation. The Company will continue to evaluate the level of the employer match based on overall financial results.

Defined Benefit Pension Plan

Prior to 2008, the Company offered a noncontributory, defined benefit pension plan (the “Pension Plan”) that covered all full-time teammates having at least twelve months of continuous service and having attained age 21. Effective 2008, the Company ceased accruing pension benefits for teammates under the Pension Plan. Although no previously accrued benefits were lost, teammates no longer accrue benefits for service subsequent to 2007.

The Company’s net accrued pension liability is included in Other liabilities in the Consolidated Balance Sheets and totaled $4.0 million at both June 30, 2013 and December 31, 2012.

Cost of the Pension Plan. The following table summarizes the net periodic expense components for the Pension Plan, which is included in Salaries and other personnel expense in the Consolidated Statements of Income (Loss), for the periods indicated (in thousands).

	For the three months ended June 30,						For the six months ended June 30,
	2013			2012			2013			2012
Interest cost	$	211		$	234		$	421		$	490
Expected return on plan assets		(284	)		(276	)		(567	)		(579	)
Amortization of net actuarial loss		243			222			485			466
Net periodic pension expense	$	170		$	180		$	339		$	377

As a result of the Company’s decision to curtail the Pension Plan effective December 31, 2007, no costs relative to service have been necessary since that date as teammates no longer accrue benefits for services rendered.

Defined Benefit Pension Plan Assets. The fair value of Pension Plan assets totaled $15.0 million and $14.5 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 and December 31, 2012, the fair value of Company common stock included in the Pension Plan was 0.3% and 0.2%, respectively, of total fair value of Pension Plan assets.

Fair Value Measurements. The following tables summarize Pension Plan assets measured at fair value at the dates indicated aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Defined benefit pension plan assets	$	244	$	14,755	$	-	$	14,999

	December 31, 2012
	Level 1		Level 2		Level 3		Total
Defined benefit pension plan assets	$	133	$	14,407	$	-	$	14,540

Current and Future Expected Contributions. During January 2013, the Company made its final regularly scheduled contribution for the 2012 plan year in the amount of $163 thousand. During the six months ended June 30, 2013, the Company made a regularly scheduled contribution in the amount of $187 thousand for the 2013 plan year.

Key Man Life Insurance 

The Company has fully funded life insurance policies on two former members of executive management who are now retired from the Company. Such policies are recorded in Other assets in the Consolidated Balance Sheets at the cash surrender value less applicable surrender charges. At both June 30, 2013 and December 31, 2012, the cash surrender value of such policies totaled $1.6 million.