Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock [Abstract]

Stock-Based Compensation

(10)  Stock-Based Compensation

(a) Stock Options:  The Company measures the fair value of each stock option grant at the date of the grant, using the Black-Scholes option pricing model.  There were no options granted during the nine months ended September 30, 2011 and 2010.

The Company recognizes compensation expense for stock option grants on a straight-line basis over the requisite service period of the grant.  For the three and nine months ended September 30, 2011, the Company recognized $7 thousand and $81 thousand in stock-based compensation expense, as a component of salaries and benefits, compared to $42 thousand and $126 thousand for the same periods a year ago, respectively.  As of September 30, 2011, there was approximately $17 thousand of total unrecognized compensation cost related to nonvested stock option grants.

The following table summarizes information on stock option activity during 2011:

	Shares			Weighted average exercise price per share		Weighted average remaining contractual terms (in years)		Total intrinsic value (in thousands)
Outstanding, January 1, 2011		204,622		$	10.08
Granted		-
Exercised		(14,623	)		7.76
Forfeited, expired or cancelled		(6,039	)		13.01
Outstanding, September 30, 2011		183,960			10.17		5.17	$	210
Exercisable at September 30, 2011		178,080		$	9.98		5.16	$	210

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (i.e., the difference between the Company's closing stock price on September 30, 2011, and the exercise price, times the number of shares) that would have been received by the option holders had all the option holders exercised their options on September 30, 2011.  This amount changes based upon the fair market value of the Company's stock.

(b) Restricted Stock Awards: The Company grants restricted stock awards (“RSA”) periodically for the benefit of employees and directors.  Recipients of RSAs do not pay any cash consideration to the Company for the shares and receive all dividends with respect to such shares, whether or not the shares have vested.  Restrictions are based on continuous service requirements with the Company.

The following table summarizes information on RSA activity during 2011:

	Shares			Weighted average fair value per share		Weighted average remaining contractual terms (in years)
Outstanding, January 1, 2011		1,354		$	15.06
Granted		-			-
Vested		(1,354	)		15.06
Forfeited, expired or cancelled		-			-
Outstanding, September, 2011		-		$	-		-

For the three and nine months ended September 30, 2011, the Company recognized $1 thousand and $8 thousand in RSA compensation expense, as a component of salaries and benefits, compared to $5 thousand and $21 thousand for the three and nine months ended September 30, 2010, respectively.  As of September 30, 2011, there was no remaining unrecognized compensation costs related to nonvested RSAs.

(c) Restricted Stock Units: The Company grants restricted stock units (“RSU”) periodically for the benefit of employees and directors. Recipients of RSUs receive shares of the Company's stock upon the lapse of their related restrictions and do not pay any cash consideration to the Company for the shares.  Restrictions are based on continuous service.

The following table summarizes information on RSU activity during 2011:

	Shares			Weighted average exercise price per share		Weighted average remaining contractual terms (in years)
Outstanding, January 1, 2011		57,533		$	12.56
Granted		50,700			12.95
Vested		(21,907	)		12.68
Forfeited, expired or cancelled		(1,096	)		13.21
Outstanding, September 30, 2011		85,230		$	12.75		3.94

For the three and nine months ended September 30, 2011, the Company recognized $115 thousand and $365 thousand in RSU compensation expense, as a component of salaries and benefits, compared to $96 thousand and $134 thousand for the same periods a year ago, respectively.  As of September 30, 2011, there was $905 thousand of total unrecognized compensation costs related to nonvested RSUs.