Pension Plans

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pension Plans

Note 11 – 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 $242,000 and $190,000 for the three months ended June 30, 2014 and 2013, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

	For the Three Months Ended June 30,
	2014			2013			2014			2013		2014 Total			2013 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			—			80			—		80			—
Interest cost		382			302			53			67		435			369
Expected return on plan assets		(701	)		(574	)		—			—		(701	)		(574	)
Amortization of transition obligation		—			—			—			—		—			—
Amortization of net (gain)/loss		—			15			(56	)		—		(56	)		15
Amortization of prior service cost		—			—			—			—		—			—
Net periodic pension cost	$	(319	)		(257	)		77			67		(242	)		(190	)

The Company recorded pension income totaling $528,000 and $327,000 for the six months ended June 30, 2014 and 2013, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

	For the Six Months Ended June 30,
	2014			2013			2014			2013		2014 Total			2013 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP		Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			—			136			—		136			—
Interest cost		731			680			105			134		836			814
Expected return on plan assets		(1,390	)		(1,159	)		—			—		(1,390	)		(1,159	)
Amortization of transition obligation		—			—			—			—		—			—
Amortization of net (gain)/loss		—			18			(110	)		—		(110	)		18
Amortization of prior service cost		—			—			—			—		—			—
Net periodic pension cost	$	(659	)		(461	)		131			134		(528	)		(327	)

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 not make any contributions to the Pension Plan in 2014.

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