SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

6 Months Ended

Jun. 30, 2011

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

NOTE J — SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

The Company’s unfunded noncontributory defined benefit plan (the “Plan”) covers certain senior executives, is administered by the Company, and calls for annual payments upon retirement based on years of service and final average salary. Benefit costs and liabilities balances are calculated based on certain assumptions including benefits earned, discount rates, interest costs, mortality rates and other factors. Actual results that differ from the assumptions are accumulated and amortized over future periods, affecting the recorded obligation and expense in future periods.

The following assumptions were used in the calculation of the net benefit cost and obligation at June 30, 2011:

Discount rate	4.75	%
Average rate of increase in compensation	3.00	%

The Company believes the assumptions used are appropriate; however, changes in assumptions or differences in actual experience may affect our benefit obligation and future expenses. The change in the Plan’s net benefit obligation is as follows:

	(In thousands)
Net benefit cost accrued at December 31, 2010 (unaudited)	$	17,059
Service cost	247
Interest cost	202
Payments made	(526		)
Net benefit cost accrued at March 31, 2011 (unaudited)	16,982
Service cost	247
Interest cost	202
Net benefit cost accrued at June 30, 2011 (unaudited)	$	17,431
Net benefit cost accrued at December 31, 2009 (unaudited)	$	14,138
Service cost	415
Interest cost	201
Net benefit cost accrued at March 31, 2010 (unaudited)	14,754
Service cost	415
Interest cost	201
Net benefit cost accrued at June 30, 2010 (unaudited)	$	15,370