(14) Employee Benefit Plans

The Bank has a combined employee stock ownership and profit sharing plan (“KSOP”). The plan is a defined contribution plan and is available to all employees meeting certain eligibility requirements. Employer expenses related to contributions to the plan for 2012, 2011, and 2010 were $1,512,000, $1,449,000, and $1,393,000, respectively. Employee and employer contributions are made in accordance with the terms of the plan. As of December 31, 2012 and 2011, the KSOP held 484,075 and 458,600, respectively, shares of Bancorp stock.

In addition the Bank has non-qualified “excess” plans into which directors and certain senior officers may defer director fees or salary. The Bank matched certain executives’ contributions into the senior officers’ plan amounting to approximately $146,000, $75,000, and $119,000 in 2012, 2011 and 2010 respectively. At December 31, 2012 and 2011, the amounts included in other liabilities in the consolidated financial statements for this plan were $2,954,000 and $2,383,000, were comprised primarily of participants’ contributions, and represented the fair value of mutual fund investments directed by participants.

The Bank sponsors an unfunded, non-qualified, defined benefit retirement plan for four key officers (two current, and two retired), and has no plans to increase the number of participants. Benefits vest based on 20 years of service. Bancorp uses a December 31 measurement date for this plan. At December 31, 2012 and 2011, the accumulated benefit obligation for the plan included in other liabilities in the consolidated financial statements was $2,247,000 and $2,236,000, respectively. Discount rates of 3.79% and 3.95% were used in 2012 and 2011, respectively, in determining the actuarial present value of the projected benefit obligation. The actuarially determined pension costs are expensed and accrued over the service period, and benefits are paid from the Bank’s assets. The Bank maintains life insurance policies on certain current and former executives, the income from which helps offset the cost of benefits. The liability for the Bank’s plan met the benefit obligation as of December 31, 2012 and 2011.

Information about the components of the net periodic benefit cost of the defined benefit plan follows:

	Year ended December 31,
(in thousands)	2012		2011		2010

Components of net periodic benefit cost:
Service cost	$	—	$	—	$	—
Interest cost	83		86		96
Expected return on plan assets	—		—		—
Amortization of prior service cost	—		—		—
Amortization of net losses	60		56		27

Net periodic benefit cost	$	143	$	142	$	123

The benefits expected to be paid in each year from 2013 to 2017 are listed in the table below.

(In thousands)	Benefits
2013	$	123
2014	84
2015	84
2016	84
2017	84
Beyond 2017	3,530

Total future payments	$	3,989

The expected benefits to be paid are based on the same assumptions used to measure the Bank’s benefit obligation at December 31, 2012. There are no obligations for other post-retirement and post-employment benefits.