Share-Based Compensation

3 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

For each of the three month periods ended March 31, 2012 and 2011, share-based compensation cost recognized was $50,000. The recognized tax benefit for stock option compensation expense was $9,000 for each of the three month periods ended March 31, 2012 and 2011. 

The Company bases the fair value of the options granted on the date of grant using a Black-Scholes Merton option pricing model that uses assumptions based on expected option life and the level of estimated forfeitures, expected stock volatility, risk free interest rate, and dividend yield.  The expected term of the Company’s options was based on the Company's own historical experience.  Stock volatility is based on the historical volatility of the Company’s stock.  The risk-free rate is based on the U. S. Treasury yield curve for the periods within the contractual life of the options in effect at the time of grant.  The compensation cost for options granted is based on the weighted average grant date fair value per share.

No options to purchase shares of the Company’s common stock were issued in the first three months of 2012 and 2011 from any of the Company’s stock based compensation plans. 

A summary of the combined activity of the Company’s Stock Based Compensation Plans for the three month period ended March 31, 2012 follows:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value "In thousands"
Options outstanding at January 1, 2012	511,019		$	8.56
Options exercised	(43,500	)	$	5.41
Options canceled	(120	)	$	5.76
Options outstanding at March 31, 2012	467,399		$	8.85	4.00	$	232
Options vested or expected to vest at March 31, 2012	451,091		$	8.95	5.28	$	214
Options exercisable at March 31, 2012	380,935		$	9.51	3.17	$	118

The total intrinsic value of 43,500 options exercised in the three months ended March 31, 2012 was $45,000.

Cash received from options exercised for the three months ended March 31, 2012 was $235,000.  The actual tax benefit realized for the tax deductions from options exercised totaled $20,000 and $81,000 for three months ended March 31, 2012 and 2011, respectively.

As of March 31, 2012, there was $147,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all plans.  The cost is expected to be recognized over a weighted average period of 3.21 years.