NOTE 13, Pension Plan

The Company provides pension benefits for eligible participants through a non-contributory defined-benefit pension plan. The plan was frozen effective September 30, 2006; therefore no additional participants have been or will be added to the plan since such date.

Information pertaining to the activity in the plan, using a measurement date of December 31, is as follows:

	Years ended December 31,
	2013			2012
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	6,262		$	5,875
Service cost		0			0
Interest cost		252			289
Benefits paid		(480	)		(852	)
Actuarial (gain) loss		(378	)		950
Benefit obligation at end of year	$	5,656		$	6,262

Change in plan assets
Fair value of plan assets at beginning of year	$	5,168		$	5,721
Actual return on plan assets		634			299
Employer contribution		0			0
Benefits paid		(480	)		(852	)
Fair value of plan assets at end of year	$	5,322		$	5,168

Funded Status at end of year	$	(334	)	$	(1,094	)

Amounts recognized in the consolidated balance sheets at December 31,	2013					2012
Accrued pension liability		$	(334	)		$	(1,094	)

Amounts recognized in other comprehensive income (loss)
Loss	$	2,345		$	3,309
Deferred taxes		(797	)		(1,125	)
Net loss	$	1,548		$	2,184

Accumulated benefit obligation

5,656

6,262

Assumptions used to determine the benefit obligations at December 31,	2013			2012
Discount rate		4.90%			4.10%

	Years ended December 31,
Components of net periodic pension cost	2013			2012
	(in thousands)
Interest cost	$	252		$	289
Expected return on plan assets		(351	)		(371	)
Amortization of unrecognized loss		303			262
Preliminary Net periodic pension cost		204			180
Settlement/Curtailment Expense		0			292
Net Periodic Pension Cost	$	204		$	472

Components of other amounts recognized in other comprehensive income
Net actuarial (gain) loss	$	(661	)	$	1,022
Settlement loss		0			(292	)
Amortization of actuarial loss		(303	)		(262	)
Total recognized in other comprehensive income	$	(964	)	$	468

Total recognized in net periodic benefit cost and other comprehensive income	$	(760	)	$	940

The estimated net loss for the pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year is $222 thousand.

	Years ended December 31,
Weighted-average assumptions used to determine net periodic pension cost	2013			2012
Discount rate		4.10	%		5.00	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%

The overall expected long-term rate of return on plan assets was determined based on the current asset allocation and the related volatility of those investments.

The Company's overall investment strategy is growth with income. The emphasis of the objective is on both capital appreciation and income. The portfolio contains a blend of securities expected to grow in value over the long term and those expected to produce income. Moderate market value volatility is expected.

The pension plan invests primarily in large and mid-cap equities and government and corporate bonds, with the following target allocations: equities 55 percent, fixed income 40 percent and cash 5 percent. The pension plan has small investments in precious metals and emerging markets equity mutual funds, each of which represents less than 1 percent of the total account value.

Fair value is discussed in detail in Note 15. The fair value of the Company's pension plan assets by asset category are as follows:

	Assets at Fair Value as of December 31, 2013
	(in thousands)
Asset Category	Level 1			Level 2			Level 3			Total
Money market funds		$	240		$	0		$	0		$	240
Mutual Funds			75			0			0			75
Common Stock			2,999			0			0			2,999
Corporate bonds			0			2,008			0			2,008
Total assets at fair value		$	3,314		$	2,008		$	0		$	5,322

	Assets at Fair Value as of December 31, 2012
	(in thousands)
Asset Category	Level 1			Level 2			Level 3			Total
Money market funds		$	356		$	0		$	0		$	356
Mutual Funds			35			0			0			35
Common Stock			2,846			0			0			2,846
Corporate bonds			0			1,931			0			1,931
Total assets at fair value		$	3,237		$	1,931		$	0		$	5,168

The Company did not contribute to the pension plan in 2013 or 2012. Management has not determined at this time the amount, if any, it will contribute to the plan for the year ending December 31, 2014.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):

2014	$	234
2015		292
2016		218
2017		412
2018		353
Thereafter		2,043
Total	$	3,552

401(K) PLAN

The Company has a 401(k) Plan in which substantially all employees are eligible to participate. Employees may contribute to the plan subject to certain limits based on federal tax laws. The Company makes matching contributions equal to 100 percent of the first 4 percent of an employee's compensation contributed to the plan. Matching contributions vest to the employee immediately. The Company may make profit sharing contributions to the plan as determined by the Board of Directors. Profit sharing contributions vest to the employee over a six-year period. For the years ended December 31, 2013 and 2012, expense attributable to the plan amounted to $642 thousand and $646 thousand, respectively.