Note 12 – Pension Plans

The Company sponsors two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which is generally available to all employees hired prior to June 19, 2009, and a Supplemental Executive Retirement Plan (the “SERP”), which is for the benefit of certain senior management executives of the Company.

The Company recorded pension expense totaling $816,000 and $806,000 for the three months ended September 30, 2011 and 2010, respectively, related to the Pension Plan and the SERP. The following table contains the components of the pension expense.

	For the Three Months Ended September 30,
	2011			2010			2011		2010		2011 Total			2010 Total
($ in thousands)	Pension Plan			Pension Plan			SERP		SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	478			454			99		70		577			524
Interest cost		432			410			102		98		534			508
Expected return on plan assets		(444	)		(399	)	─			–		(444	)		(399	)
Amortization of transition obligation		1			–		─			–		1			–
Amortization of net (gain)/loss		114			139			26		25		140			164
Amortization of prior service cost		3			4			5		5		8			9
Net periodic pension cost	$	584			608			232		198		816			806

The Company recorded pension expense totaling $2,496,000 and $2,372,000 for the nine months ended September 30, 2011 and 2010, respectively, related to the Pension Plan and the SERP. The following table contains the components of the pension expense.

	For the Nine Months Ended September 30,
	2011			2010			2011		2010		2011 Total			2010 Total
($ in thousands)	Pension Plan			Pension Plan			SERP		SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	1,434			1,302			345		306		1,779			1,608
Interest cost		1,296			1,166			306		283		1,602			1,449
Expected return on plan assets		(1,332	)		(1,109	)	─			–		(1,332	)		(1,109	)
Amortization of transition obligation		3			2		─			–		3			2
Amortization of net (gain)/loss		342			337			78		61		420			398
Amortization of prior service cost		9			10			15		14		24			24
Net periodic pension cost	$	1,752			1,708			744		664		2,496			2,372

The Company's contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to provide the Company with the maximum deduction for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company contributed $2,500,000 to the Pension Plan in the third quarter of 2011 and does not expect any further contributions the remainder of the year.

The Company's funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.