SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

9 Months Ended

Sep. 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 September 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 for the three months ended September 30, 2011 and 2010 is as follows:

	(in thousands)
Net benefit cost accrued at June 30, 2011 (unaudited)	$	17,431
Service cost	247
Interest cost	202
Net benefit cost accrued at September 30, 2011 (unaudited)	$	17,880

	(in thousands)
Net benefit cost accrued at June 30, 2010 (unaudited)	$	15,370
Service cost	415
Interest cost	201
Net benefit cost accrued at September 30, 2010 (unaudited)	$	15,986

The change in the Plan’s net benefit obligation for the nine months ended September 30, 2011 and 2010 is as follows:

	(in thousands)
Net benefit cost accrued at December 31, 2010 (unaudited)	$	17,059
Service cost	741
Interest cost	606
Payments made	(526		)
Net benefit cost accrued at September 30, 2011 (unaudited)	$	17,880

	(in thousands)
Net benefit cost accrued at December 31, 2009 (unaudited)	$	14,138
Service cost	1,245
Interest cost	603
Net benefit cost accrued at September 30, 2010 (unaudited)	$	15,986