STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2012

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

Note 16.  STOCK COMPENSATION PLANS

On August 30, 2000, the Company’s Board adopted the 2000 Employee Stock Incentive Plan (the “Stock Incentive Plan”) in which options may be granted to key officers and other employees of the Company.  The aggregate number of shares which may be issued upon exercise of the options under the plan cannot exceed 1,100,000 shares.  Options and rights granted under the Stock Incentive Plan become exercisable six months after the date the options are awarded and expire ten years after the award date.  Upon exercise, the shares are issued from the Company’s authorized but unissued stock. The Stock Incentive Plan expired on August 30, 2010 and from and after that date no further grants have been or will be made under the plan.

The Board also adopted on August 30, 2000, the 2000 Independent Directors Stock Option Plan (the “Directors’ Stock Plan”) for directors who are not officers or employees of the Company.  The aggregate number of shares issuable under the Directors’ Stock Plan cannot exceed 550,000 shares and are exercisable six months from the date the awards are granted and expire three years after the award date.  Upon exercise, the shares are issued from the Company’s authorized but unissued shares. The Directors’ Stock Plan expired on August 30, 2010 and from and after that date no further grants have been or will be made under the plan.

No compensation expense related to options under either the Stock Incentive Plan or the Directors’ Stock Plan was required to be recorded in each of the years ended December 31, 2012, 2011, and 2010.

A summary of the status of the Company’s stock option plans is presented below:

	2012				2011				2010
			Weighted				Weighted				Weighted
			Average				Average				Average
			Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price
Outstanding at the beginning of the year	188,193		12.62		222,616		12.58		366,248		$	12.18
Granted	—		—		—		—		—
Exercised	—		—		—		—		—
Forfeited	(59,023	)	9.03		(34,423	)	12.37		(143,632	)	$	11.55
Outstanding at the end of the year	129,170		$	14.26	188,193		$	12.62	222,616		$	12.58
Options exercisable at year end	129,170		$	14.26	188,193		$	12.62	222,616		$	12.58
Weighted average fair value of options granted during the year			$	—			$	—			$	—
Stock-Based Compensation Expense			$	—			$	—			$	—

At December 31, 2012, 2011 and 2010 the exercisable options had no total intrinsic value and there was no unrecognized compensation expense.

Information pertaining to options outstanding at December 31, 2012 is as follows:

	Options Outstanding				Options Excercisable
		Weighted
		Average	Weighted			Weighted
		Remaining	Average			Average
	Number	Contractual	Exercise		Number	Exercise
Range of Exercise Price	Outstanding	Life	Price		Exercisable	Price
$10.01 - $23.13	129,170	3.5	$	14.26	129,170	$	14.26

On November 28, 2012, the Board of Directors adopted the 2012 Employee Stock Grant Plan under which 16,000 shares of common stock were authorized to be granted to employees. On December 17, 2012, the Company granted 50 shares of the Company’s common stock to each active full and part time employee. There were 15,050 shares issued under this grant at a cost of $3.05 per share. The total cost of this grant was $46 thousand, which was included in salary expense in 2012. At December 31, 2012, there were 950 shares of the Company’s common stock reserved for future grants under this plan.