Equity Incentive Plan

6 Months Ended

Jun. 30, 2011

(9)

Equity Incentive Plan

At June 30, 2011, the Company had one equity incentive plan, which was described more fully in Note 13 of the consolidated financial statements and notes thereto for the year ended December 31, 2010.

The following table presents the activity for the plan for the six months ended June 30, 2011:

	Stock Options
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value

Outstanding at beginning of year		24,000		$	6.72
Granted		25,998		$	6.88
Forfeited		(7,650	)	$	6.81

Outstanding at end of period		42,348		$	6.80		9.17	$	-

Exercisable at end of period		5,796		$	6.72		8.65	$	-

	Non-vested
	Restricted Stock
	Number of Shares			Weighted Average Grant Date Value

Outstanding at beginning of year		24,000		$	5.20
Granted		25,998		$	6.50
Forfeited		(7,650	)	$	5.92
Vested		(5,796	)	$	5.20

Outstanding at end of period		36,552		$	5.97

As of June 30, 2011, unrecognized share-based compensation expense related to non-vested options amounted to $88,000 and the unrecognized share-based compensation expense related to non-vested restricted stock amounted to $198,000. Both amounts are expected to be recognized over a weighted average period of 3.7 years.

The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $6.65 as of June 30, 2011 which would have been received by the option holders had all option holders exercised their options as of that date. There were no in-the-money options exercisable as of June 30, 2011, therefore the options have no intrinsic value.

For the six months ended June 30, 2011, the Company recognized compensation expense for stock options of $11,000 with a related tax benefit of $2,000. For the six months ended June 30, 2011, the Company recognized compensation expense for restricted stock awards of $25,000, with a related tax benefit of $10,000.