EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2014

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

		2014		2013

Change in benefit obligation
Benefit obligation at beginning of year	$	9,739	$	10,017
Service cost		307		342
Interest cost		415		363
Actuarial loss / (gain)		1,645		(380)
Benefits paid		(329)		(603)
Benefit obligation at end of year		11,777		9,739
Change in plan assets
Fair value of plan assets at beginning of year		10,519		8,761
Actual return (loss) on plan assets		549		1,361
Employer contribution		300		1,000
Benefits paid		(329)		(603)
Fair value of plan assets at end of year		11,039		10,519
Funded status	$	(738)	$	780

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

Amounts recognized in accumulated other
comprehensive loss consists of:			2014		2013
	Net loss	$	3,795	$	2,008
	Prior service cost		(270)		(315)
Total		$	3,525	$	1,693

Components of net periodic benefit costs

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

		2014		2013		2012
Service cost	$	307	$	342	$	330
Interest cost		415		363		344
Return on plan assets		(786)		(673)		(565)
Net amortization and deferral		51		257		135
Net periodic benefit cost (income)	$	(13)	$	289	$	244

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

The weighted-average assumptions used to determine benefit obligations at December 31, 2014 and 2013 is the following table. The change in the discount rate as well as revised mortality tables is the primary driver of the actuarial loss that occurred in 2014 of $1,645,000.

	2014	2013
Discount rate	3.50%	4.30%
Rate of compensation increase	3.00%	3.00%

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

	2014	2013	2012
Discount rate	4.30%	3.30%	4.00%
Expected long-term return on plan assets	7.50%	7.50%	7.50%
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, 2014 and 2013 (in thousands):

2014	Level I	Level II	Level III	Total	Allocation
Assets
Cash and cash equivalents	$ 516	$ -	$ -	$ 516	4.7%
Equity Securities
U.S. Companies	3,761	-	-	3,761	34.0%
Mutual Funds and ETF's (a)	3,960	-	-	3,960	35.9%
Corporate Bonds	-	2,604	-	2,604	23.6%
U.S. Agency Securities	-	198	-	198	1.8%
Total	$ 8,237	$ 2,802	$ -	$ 11,039	100.0%

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%

(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 2015. Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands):

2015		$ 312
2016		386
2017		508
2018		434
2019		1,921
2020 - 2024		4,935

Schedule of vesting, awarding and forfeiting of restricted shares

The following table details the vesting, awarding and forfeiting of restricted shares during 2014:

	2014
		Weighted
		Average
	Shares	Market Price
Outstanding, beginning of year	7,172	$ 42.02
Granted	3,598	52.82
Forfeited	(7)	37.10
Vested	(3,792)	40.28
Outstanding, end of year	6,971	$ 48.55