Pension Plans

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension plans

Note 12 – Pension Plans

The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012.

The Company recorded pension income totaling $190,000 for the three months ended June 30, 2013, which primarily related to investment income from the Pension Plan’s assets. For the three months ended June 30, 2012, the Company recorded pension expense totaling $619,000 related to the Pension Plan and the SERP. The following table contains the components of the pension (income) expense.

	For the Three Months Ended June 30,
	2013			2012			2013		2012		2013 Total			2012 Total
($ in thousands)	Pension Plan			Pension Plan			SERP		SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			457			—		76		—			533
Interest cost		302			363			67		70		369			433
Expected return on plan assets		(574	)		(492	)		—		—		(574	)		(492	)
Amortization of transition obligation		—			1			—		—		—			1
Amortization of net (gain)/loss		15			136			—		—		15			136
Amortization of prior service cost		—			3			—		5		—			8
Net periodic pension cost	$	(257	)		468			67		151		(190	)		619

The Company recorded pension income totaling $327,000 for the six months ended June 30, 2013, which primarily related to investment income from the Pension Plan’s assets. For the six months ended June 30, 2012, the Company recorded pension expense totaling $1,658,000 related to the Pension Plan and the SERP. The following table contains the components of the pension (income) expense.

	For the Six Months Ended June 30,
	2013			2012			2013		2012		2013 Total			2012 Total
($ in thousands)	Pension Plan			Pension Plan			SERP		SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			1,061			—		170		—			1,231
Interest cost		680			799			134		157		814			956
Expected return on plan assets		(1,159	)		(984	)		—		—		(1,159	)		(984	)
Amortization of transition obligation		—			2			—		—		—			2
Amortization of net (gain)/loss		18			403			—		34		18			437
Amortization of prior service cost		—			6			—		10		—			16
Net periodic pension cost	$	(461	)		1,287			134		371		(327	)		1,658

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company expects that it will contribute $1,500,000 to the Pension Plan in 2013.

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