Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(17)  Stock-Based Compensation

The Company adopted the 2005 Stock Incentive Plan (“2005 Plan”) following stockholders' approval at the 2005 Annual Meeting of Stockholders. Subsequent to the adoption of the 2005 Plan, no additional grants may be issued under the prior plans.

The 2005 Plan provides grants of up to 833,333 shares, which includes any remaining shares subject to stock awards under the prior plans for future awards, or which have been forfeited, cancelled or expire. Grants from the 2005 Plan may take any of the following forms: incentive stock options, nonqualified stock options, restricted stock, restricted units, performance shares, performance units, stock appreciation rights or dividend equivalent rights. As of December 31, 2011, the Company had 496,981 shares available for grant.

(a) Stock Options: Under the terms of the 2005 Plan, the exercise price of each incentive stock option must be greater than or equal to the market price of the Company's stock on the date of the grant. The plan further provides that no stock option granted to a single grantee may exceed $100 thousand in aggregate fair market value in a single calendar year. Stock options vest over a period of no greater than five years from the date of grant. Additionally, the right to exercise the option terminates ten years from the date of grant.

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		(42,116	)		7.17
Forfeited, expired or cancelled		(3,348	)		12.96
Outstanding, December 31, 2011		159,158			10.80		5.04	$	366
Exercisable at December 31, 2011		153,948		$	10.62		5.04	$	366

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company's closing stock price on the date of exercise or December 31, 2011, and the exercise price, times the number of shares) that was received or would have been received by the option holders had all the option holders exercised their options on December 31, 2011. This amount changes based upon the fair market value of the Company's stock. The total intrinsic value of options exercised for the years ended December 31, 2011, 2010 and 2009 was $191 thousand, $75 thousand and $66 thousand, respectively.

For the year ended December 31, 2011, 2010 and 2009, the Company recognized $86 thousand, $169 thousand and $171 thousand, respectively, in stock option compensation expense as a component of salaries and benefits. As of December 31, 2011, there was approximately $8 thousand of total unrecognized compensation cost related to non-vested options which is expected to be recognized over a weighted-average period of 0.3 years.

(b) Restricted Stock Awards: The Company grants restricted stock periodically for the benefit of employees.  Recipients of restricted stock 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.

The following table summarizes information on restricted stock 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, December 31, 2011		-		$	-		-

The total intrinsic value of restricted stock vested for the years ended December 31, 2011, 2010 and 2009 was $16 thousand, $46 thousand and $32 thousand, respectively.

For years ended December 31, 2011, 2010 and 2009, the Company recognized $8 thousand, $26 thousand and $44 thousand, respectively, in restricted stock compensation expense as a component of salaries and benefits. As of December 31, 2011, all of the compensation costs related to granted restricted stock has been recognized.

(c) Restricted Stock Units: The Company grants restricted stock units periodically for the benefit of employees. Recipients of restricted stock units 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 restricted stock unit 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		(35,145	)		12.64
Forfeited, expired or cancelled		(1,344	)		13.27
Outstanding, December 31, 2011		71,744		$	12.80		3.84

For years ended December 31, 2011, 2010 and 2009, the Company recognized $529 thousand, $143 thousand and $91 thousand, respectively, in restricted stock unit compensation expense as a component of salaries and benefits. As of December 31, 2011, there was $738 thousand of total unrecognized compensation costs related to non-vested restricted stock units which is expected to be recognized over a weighted-average period of 2.1 years.