EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2013

The following table sets forth the obligation and funded status as of December 31 (in thousands):

		2013		2012

Change in benefit obligation
Benefit obligation at beginning of year	$	10,017	$	8,387
Service cost		342		330
Interest cost		363		344
Actuarial (Gain) / Loss		(380)		1,207
Benefits paid		(603)		(251)
Benefit obligation at end of year		9,739		10,017

Change in plan assets
Fair value of plan assets at beginning of year		8,761		7,472
Actual return on plan assets		1,361		790
Employer contribution		1,000		750
Benefits paid		(603)		(251)
Fair value of plan assets at end of year		10,519		8,761

Funded status	$	780	$	(1,256)

Amounts not yet recognized as a component of net periodic pension cost (in thousands):

Amounts recognized in accumulated other
comprehensive loss consists of:
	Net loss	$	2,008	$	3,375
	Prior service cost		(315)		(357)
Total		$	1,693	$	3,018

Components of net periodic benefit costs

The components of net periodic benefit costs for the periods ending December 31 are as follows (in thousands):

		2013		2012		2011
Service cost	$	342	$	330	$	328
Interest cost		363		344		402
Expected return on plan assets		(673)		(565)		(595)
Net amortization and deferral		257		135		46
Net periodic benefit cost	$	289	$	244	$	181

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost

The weighted-average assumptions used to determine benefit obligations at December 31:

	2013	2012
Discount rate	4.30%	3.30%
Rate of compensation increase	3.00%	3.00%

The weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31:

	2013	2012	2011
Discount rate	3.30%	4.00%	5.25%
Expected long-term return on plan assets	7.50%	7.50%	8.00%
Rate of compensation increase	3.00%	3.00%	3.00%

Fair value of plan assets

The following table sets forth by level, within the fair value hierarchy as defined in footnote 17, the Plan’s assets at fair value as of December 31, 2013 and 2012 (in thousands):

2013	Level I	Level II	Level III	Total	Allocation
Assets
Cash and cash equivalents	$ 648	$ -	$ -	$ 648	6.2%
Equity Securities
U.S. Companies	3,879	-	-	3,879	36.8%
Mutual Funds and ETF's (a)	3,903	-	-	3,903	37.1%
Corporate Bonds	-	1,525	-	1,525	14.5%
U.S. Agency Securities	-	564	-	564	5.4%
Total	$ 8,430	$ 2,089	$ -	$ 10,519	100.0%

2012	Level I	Level II	Level III	Total	Allocation
Assets
Cash and cash equivalents	$ 525	$ -	$ -	$ 525	6.0%
Equity Securities
U.S. Companies	3,121	-	-	3,121	35.6%
Mutual Funds and ETF's (a)	3,058	-	-	3,058	34.9%
Corporate Bonds	-	1,149	-	1,149	13.1%
U.S. Agency Securities	-	908	-	908	10.4%
Total	$ 6,704	$ 2,057	$ -	$ 8,761	100.0%

(a)	This category comprises mutual funds investing in domestic large-cap, mid-caps, small caps, international large cap, emerging markets and commodities.

Expected future benefit payments

The Bank expects to contribute $500,000 to its pension plan in 2014. Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands):

2014		$ 373
2015		257
2016		376
2017		495
2018		428
2019 - 2023		5,506

Schedule of vesting, awarding and forfeiting of restricted shares

The following table details the vesting, awarding and forfeiting of restricted shares during 2013:

	2013
		Weighted
		Average
	Shares	Market Price
Outstanding, beginning of year	8,646	$ 35.51
Granted	3,027	48.21
Forfeited	(55)	37.10
Vested	(4,446)	33.62
Outstanding, end of year	7,172	$ 42.02