(14)	Stock Compensation Plans

As of December 31, 2012, the Company has the following share-based compensation plans:

The Company has one fixed stock option plan. Under the 2006 Stock Incentive Plan, the Company may grant option grants, stock appreciation rights, restricted stock, or stock units to an employee for an amount up to 25,000 total shares in any calendar year. With respect to awards granted to non-employee directors under the Plan, no outside director can receive option grants, stock appreciation rights, restricted stock, or stock units in excess of 3,000 total shares in any calendar year. There are 917,598 shares authorized under the plan. The plan will terminate March 15, 2016. The Compensation Committee of the Board of Directors is authorized to prescribe the terms and conditions of each option, including exercise price, vestings, or duration of the option. Generally, option grants vest at a rate of 25% per year after the first anniversary of the date of grant and restricted stock awards vest at a rate of 100% after four years. Options are granted with an exercise price of the fair value of the related common stock on the date of grant.

Stock option and restricted stock activity for the Company's Stock Incentive Plan during the years indicated is as follows:


	Stock Options
	Number of shares			Weighted average exercise price

Balance at December 31, 2011		421,697		$	11.65
Granted		14,975			5.00
Exercised		—			—
Cancelled		—			—
Expired		(61,109	)		8.24

Balance at December 31, 2012		375,563		$	11.94

The 2006 Stock Incentive Plan permits stock-for-stock exercises of shares. During 2012, employees tendered no mature shares in stock-for-stock exercises. Matured shares are those held by employees longer than six months.

The following table presents information on stock options for the year ended December 31, 2012:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term

Options exercised		—	$	—	$	—

Stock options outstanding and expected to vest:		375,563	$	11.94	$	33		2.87

Stock options vested and currently exercisable:		339,313	$	12.71	$	15		2.30

The weighted average grant date fair value per share of options granted during the years ended December 31 was $2.40 in 2012, $2.18 in 2011 and $1.89 in 2010.

At December 31, 2012, the range of exercise prices for all outstanding options ranged from $4.21 to $23.51.

As of December 31, 2012, there was $55 of total unrecognized compensation related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 2.5 years.

For the years ended December 31, 2012, 2011, and 2010 there was $29, $29, and $89, respectively of recognized compensation related to stock options.

The Company determines fair value at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the risk-free interest rate, the volatility of the underlying stock and the expected life of the option.

The weighted average assumptions used in the pricing model are noted in the following table. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on both the implied volatilities from the traded option on the Company's stock and historical volatility on the Company's stock.

The Company expenses the fair value of the option on a straight line basis over the vesting period. The Company estimates forfeitures and only recognizes expense for those shares expected to vest.

The following table shows our weighted average assumptions used in valuing stock options granted for the years ended December 31:


	2012			2011			2010
Risk-Free Interest Rate		0.87	%		1.91	%		2.44	%

Expected Dividend Yield		0.00	%		0.00	%		0.00	%

Expected Life in Years		5.00			5.00			5.00

Expected Price Volatility		53.06	%		50.98	%		48.12	%

In addition to stock options, the Company also grants restricted stock awards to directors, certain officers and employees. The restricted shares awarded become fully vested after one to four years of continued employment or service from the date of grant. Restricted shares are forfeited if officers and employees terminate prior to the lapsing of restrictions.

The following table presents information about non-vested restricted stock awards outstanding for the year ended December 31, 2012:

	Restricted Stock Awards
	Number of shares			Weighted average grant date fair value

Balance at December 31, 2011		46,013		$	7.16
Granted		13,193			5.00
Vested		(11,896	)		14.64
Cancelled/Forfeited		(529	)		9.79

Balance at December 31, 2012		46,781		$	4.62

The aggregate intrinsic value of restricted stock awards vested in calendar year 2012, 2011, and 2010 was $59, $32 and $9, respectively.

The weighted average fair value per share of restricted stock awards granted during the years ended December 31 was $5.00 in 2012, $4.75 in 2011 and $4.25 in 2010.

As of December 31, 2012, there was $103 of total unrecognized compensation related to non-vested restricted stock awards. This cost is expected to be recognized over a weighted average period of approximately 2.5 years.

For the year ended December 31, 2012, 2011, and 2010 there was $58, $98, and $118 of recognized compensation related to restricted stock awards.

Employee Stock Purchase Plan

Under the First Northern Community Bancorp 2006 Amended Employee Stock Purchase Plan ("Plan"), the Company is authorized to issue to an eligible employee shares of common stock. There are 300,958 shares authorized under the Plan. The Plan will terminate March 15, 2016. The Plan is implemented by participation periods of not more than twenty-seven months each. The Board of Directors determines the commencement date and duration of each participation period. An eligible employee is one who has been continually employed for at least ninety (90) days prior to commencement of a participation period. Under the terms of the Plan, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company's common stock each participation period. The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the Date of Participation or the fair value on the last trading day during the participation period. Approximately 46 percent of eligible employees are participating in the Plan in the current participation period, which began November 24, 2012 and will end November 23, 2013.

Under the Plan, at the annual stock purchase date of November 23, 2012, there were $93 in contributions, and 24,219 shares were purchased at an average price of $3.86. Compensation cost is reported in salaries and employee benefits expense in the consolidated statements of income.