Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

Schedule of defined benefit plan disclosures

The following table summarizes the projected benefit obligations, plan assets, funded status and rate assumptions associated with the Bank's Cash Balance Plan based upon actuarial valuations.

	December 31,
(Dollars in thousands)	2012			2011			2010
Change in benefit obligation
Projected benefit obligation, beginning	$	8,768		$	7,915		$	6,816
Service cost	636			611			531
Interest cost	395			438			397
Actuarial loss	505			154			523
Benefits paid	(246		)	(350		)	(352		)
Projected benefit obligation, ending	$	10,058		$	8,768		$	7,915
Change in plan assets
Fair value of plan assets, beginning	$	8,295		$	7,261		$	6,385
Actual return on plan assets	1,063			(116		)	828
Employer contributions	500			1,500			400
Benefits paid	(246		)	(350		)	(352		)
Fair value of plan assets, ending	$	9,612		$	8,295		$	7,261
Funded status	$	(446	)	$	(473	)	$	(654	)
Amounts recognized as an other liability	$	(446	)	$	(473	)	$	(654	)
Amounts recognized in accumulated other comprehensive income
Net loss	$	2,495		$	2,525		$	1,738
Net obligation at transition	—			—			(4		)
Prior service cost	(1,077		)	(1,144		)	(1,212		)
Deferred taxes	(496		)	(483		)	(183		)
Total recognized in accumulated other comprehensive income	$	922		$	898		$	339
Weighted-average assumptions for benefit obligation at valuation date
Discount rate	4.0		%	4.5		%	5.5		%
Expected return on plan assets	8.0			8.0			8.0
Rate of compensation increase	3.0			4.0			4.0

The accumulated benefit obligation was $10.06 million and $8.77 million as of the actuarial valuation dates in 2012 and 2011, respectively.

	Year Ended December 31,
(Dollars in thousands)	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	636		$	611		$	531
Interest cost	395			438			397
Expected return on plan assets	(633		)	(581		)	(495		)
Amortization of prior service cost	(68		)	(68		)	(68		)
Amortization of net obligation at transition	—			(4		)	(5		)
Recognized net actuarial loss	106			63			48
Net periodic benefit cost	436			459			408
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	(31		)	788			142
Amortization of net obligation at transition	—			4			5
Amortization of prior service costs	68			68			68
Deferred taxes	(13		)	(301		)	(76		)
Total recognized in accumulated other comprehensive income	24			559			139
Total recognized in net periodic benefit cost and other comprehensive income	$	460		$	1,018		$	547

As of December 31, 2012 and 2011, the fair value of the defined benefit plan assets is as follows:

	December 31, 2012
	Fair Value Measurements Using						Assets at Fair Value
(Dollars in thousands)	Level 1		Level 2		Level 3
Mutual funds-fixed income 1	$	3,735		—		—	$	3,735
Mutual funds-equity 2		5,867		—		—		5,867
Cash and equivalents 3		10		—		—		10
Total pension assets	$	9,612		—		—	$	9,612

	December 31, 2011
	Fair Value Measurements Using						Assets at Fair Value
(Dollars in thousands)	Level 1		Level 2		Level 3
Mutual funds-fixed income 1	$	3,306		—		—	$	3,306
Mutual funds-equity 2		4,983		—		—		4,983
Cash and equivalents 3		6		—		—		6
Total pension assets	$	8,295		—		—	$	8,295

_________

¹ This category includes investments in mutual funds focused on fixed income securities with both short-term and long-term investments. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the funds.

2	This category includes investments in mutual funds focused on equity securities with a diversified portfolio and includes investments in large cap and small cap funds, growth funds, international focused funds and value funds. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the funds.
3	This category comprises cash and short-term cash equivalent funds. The funds are valued at cost which approximates fair value.

Weighted-average assumptions for net periodic benefit cost

	January 1,
	2012			2011			2010
Weighted-average assumptions for net periodic benefit cost as of
Discount rate		4.5	%		5.5	%		6.0	%
Expected return on plan assets		8.0			8.0			8.0
Rate of compensation increase		3.0			4.0			4.0

Benefits expected to be paid by the plan in the next ten years

The benefits expected to be paid by the plan in the next ten years are as follows:

(Dollars in thousands)
2013	$	167
2014		760
2015		234
2016		717
2017		509
2018 – 2022		3,656
	$	6,043

Weighted average asset allocations by asset category

The Bank's defined benefit pension plan's weighted average asset allocations by asset category are as follows:

	December 31,
	2012			2011
Mutual funds-fixed income		39	%		40	%
Mutual funds-equity		61			60
Cash and equivalents		*			*
		100	%		100	%

* Less than one percent.