Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(9)  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 three and six months ended June 30, 2012 and 2011.

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 six months ended June 30, 2012, the Company recognized $2 thousand and $8 thousand in stock-based compensation expense, as a component of salaries and benefits, compared to $35 thousand and $75 thousand for the same periods a year ago, respectively.  As of June 30, 2012, there was no remaining unrecognized compensation costs related to nonvested stock option grants.

The following table summarizes information on stock option activity during 2012:

	Shares			Weighted average exercise price per share		Weighted average remaining contractual terms (in years)		Total intrinsic value (in thousands)
Outstanding, January 1, 2012		155,224		$	10.71
Granted		-			-
Exercised		(23,808	)		7.63			$	134
Forfeited, expired or cancelled		(3,776	)		15.58
Outstanding, June 30, 2012		127,640			11.15		4.99	$	426
Exercisable at June 30, 2012		127,640		$	11.15		4.99	$	426

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 June 30, 2012, 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 June 30, 2012.  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.   At June 30, 2012 and December 31, 2011, there were no RSAs outstanding.

For the three and six months ended June 30, 2012, the Company did not recognize any RSA compensation expense, as a component of salaries and benefits, compared to $2 thousand and $7 thousand for the three and six months ended June 30, 2011, respectively.  As of June 30, 2012, 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 2012:

	Shares			Weighted average fair value per share		Weighted average remaining contractual terms (in years)
Outstanding, January 1, 2012		71,744		$	12.80
Granted		79,456			11.50
Vested		(25,153	)		12.73
Forfeited, expired or cancelled		(1,748	)		13.18
Outstanding, June 30, 2012		124,299		$	11.97	2.76

For the three and six months ended June 30, 2012, the Company recognized $196 thousand and $327 thousand in RSU compensation expense, as a component of salaries and benefits, compared to $72 thousand and $249 thousand for the same periods a year ago, respectively.  As of June 30 2012, there was $1.4 million of total unrecognized compensation costs related to nonvested RSUs.