Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans

Employee Benefit Plans

NOTE 12 - EMPLOYEE BENEFIT PLANS

RETIREMENT PLAN

Old National maintains a funded noncontributory defined benefit plan (the "Retirement Plan") that was frozen as of December 31, 2005. Retirement benefits are based on years of service and compensation during the highest paid five years of employment. The freezing of the plan provides that future salary increases will not be considered. Old National's policy is to contribute at least the minimum funding requirement determined by the plan's actuary. Old National expects to contribute approximately $220 thousand to the Retirement Plan in 2011.

Old National also maintains an unfunded pension restoration plan (the "Restoration Plan") which provides benefits for eligible employees that are in excess of the limits under Section 415 of the Internal Revenue Code of 1986, as amended, that apply to the Retirement Plan. The Restoration Plan is designed to comply with the requirements of ERISA. The entire cost of the plan, which was also frozen as of December 31, 2005, is supported by contributions from the Company.

Old National contributed $95 thousand to cover benefit payments from the Restoration Plan during the first six months of 2011. Old National expects to contribute an additional $60 thousand to cover benefit payments from the Restoration Plan during the remainder of 2011.

The net periodic benefit cost and its components were as follows for the three and six months ended June 30:

		Three Months Ended						Six Months Ended
					June 30,						June 30,
(dollars in thousands)		2011			2010			2011			2010
Interest cost	$	525		$	497		$	1,050		$	994
Expected return on plan assets		(676	)		(490	)		(1,352	)		(980	)
Recognized actuarial loss		689			401			1,378			802
Settlement		391			0			604			0
Net periodic benefit cost	$	929		$	408		$	1,680		$	816