Stock-Based Compensation

Stock options generally vest ratably over three years and expire five years after they become exercisable or vest ratably over four years and expire ten years from date of grant. Restricted stock awards issued generally have a five-year cliff vesting or four year ratable vesting schedule. The Company issues new shares to satisfy share option exercises and restricted stock awards. As of September 30, 2013, 109,036 shares remain available for future issuances under stock-based compensation plans.

(a) Stock Option Awards

For the three and nine months ended September 30, 2013, the Company recognized compensation expense related to stock options of $13,000 and $55,000, respectively. No related tax benefit was recognized for the three or nine months ended September 30, 2013. For the three and nine months ended September 30, 2012, the Company recognized compensation expense related to stock options of $24,000 and $83,000, respectively, and a related tax benefit of $0 and $1,000, respectively. As of September 30, 2013, the total unrecognized compensation expense related to non-vested stock options was $42,000 and the related weighted average period over which it is expected to be recognized is approximately 0.65 years. The intrinsic value and cash proceeds from options exercised during the nine months ended September 30, 2013 totaled $53,000 and $192,000, respectively. The intrinsic value and cash proceeds from options exercised during the nine months ended September 30, 2012 totaled $13,000 and $53,000, respectively.

The following tables summarize the stock option activity for the nine months ended September 30, 2013 and 2012.



	September 30, 2013
	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding at December 31, 2012	300,658		$	17.48
Granted	—		—
Exercised	(15,997	)	12.01
Forfeited or expired	(85,900	)	22.26
Outstanding at September 30, 2013	198,761		$	15.86	3.7	$	322
Vested and expected to vest at September 30, 2013	198,708		$	15.86	3.7	$	322
Exercisable at September 30, 2013	180,517		$	15.97	3.4	$	308



	September 30, 2012
	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding at December 31, 2011	417,123		$	18.33
Granted	—		—
Exercised	(4,705	)	11.35
Forfeited or expired	(103,287	)	21.53
Outstanding at September 30, 2012	309,131		$	17.37	3.6	$	330
Vested and expected to vest at September 30, 2012	308,714		$	17.37	3.6	$	330
Exercisable at September 30, 2012	264,155		$	17.81	2.9	$	319

(b) Restricted and Unrestricted Stock Awards

For the three and nine months ended September 30, 2013, the Company recognized compensation expense related to restricted and unrestricted stock awards of $204,000 and $926,000, respectively, and a related tax benefit of $71,000 and $324,000, respectively. For the three and nine months ended September 30, 2012, the Company recognized compensation expense related to restricted stock awards of $243,000 and $800,000, respectively, and a related tax benefit of $85,000 and $280,000, respectively. As of September 30, 2013, the total unrecognized compensation expense related to non-vested restricted and unrestricted stock awards was $2.2 million and the related weighted average period over which it is expected to be recognized is approximately 2.41 years. The vesting date fair value of restricted stock awards that vested during the nine months ended September 30, 2013 and 2012 was $1.2 million and $694,000, respectively.

The following tables summarize the restricted and unrestricted stock award activity for the nine months ended September 30, 2013 and 2012.



	September 30, 2013
	Shares		Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2012	189,670		$	14.86
Granted	102,590		14.30
Vested	(85,733	)	15.57
Forfeited	(2,150	)	15.03
Nonvested at September 30, 2013	204,377		$	14.28



	September 30, 2012
	Shares		Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2011	164,880		$	16.29
Granted	90,676		14.02
Vested	(49,976	)	17.99
Forfeited	(3,496	)	15.32
Nonvested at September 30, 2012	202,084		$	14.87