Defined Benefit Retirement Plan

9 Months Ended

Sep. 30, 2011

Defined Benefit Retirement Plan

Defined Benefit Retirement Plan

NOTE 6 — Defined Benefit Retirement Plan

The Corporation had a defined benefit retirement plan covering substantially all of its employees, prior to January 1, 2008. Effective January 1, 2008, the plan was amended to close the plan to new entrants. The benefits under the plan are based on years of service and the employees' compensation. The Corporation's funding policy allows contributions annually up to the maximum amount that can be deducted for federal income taxes purposes. Contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. The Corporation has made no contributions in the first nine months of 2011 and does not expect to contribute to the defined benefit plan in the remainder of 2011. Pension expense included the following components for the three and nine month periods ended September 30, 2011 and 2010:

(Dollars in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Components of net periodic pension cost
Service cost	$	48		$	47		$	144		$	140
Interest cost		119			118			358			354
Expected return on plan assets		(158	)		(144	)		(474	)		(431	)
Additional recognized amounts		38			32			114			96
Net periodic pension cost	$	47		$	53		$	142		$	159