Stock-based Compensation

6 Months Ended

Jun. 30, 2012

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

Stock-based Compensation

Stock-based Compensation

During the three and six months ended June 30, 2012, 2,400 and 7,500 options were vested, respectively. During the three and six months ended June 30, 2011, 6,400 and 20,300 options were vested, respectively. At June 30, 2012, there were 12,000 options unvested and no shares available for grants of options other than shares available under the Omnibus Plan. Total options outstanding at June 30, 2012 were 252,117.

As of June 30, 2012, there are 640,500 restricted shares outstanding, of which 23,331 shares of restricted stock are vested and 617,169 shares are nonvested. There were 497,500 shares of restricted stock issued during the three and six months ended June 30, 2012 at an average fair value of $2.31, and 20,000 restricted shares were forfeited. Of the 497,500 shares issues, 490,000 were issued with performance and service conditions. These conditions are based on achieving certain earnings and credit performance standards and require a minimum of 2-years of service. During the first quarter of 2011, there were 145,000 shares of restricted stock granted at an average fair value of $2.34 per share. The fair value of each share grant is based on the closing market price of the stock on the date of issuance. There were no restricted shares granted in the second quarter of 2011.

There were no options granted or exercised during the first three or six months ended June 30, 2012 or 2011.

The compensation expense related to options and restricted shares was $129,281 for the three-month period ended June 30, 2012 and $164,040 for the six months ended June 30, 2012. The compensation expense related to options and restricted shares was $53,725 for the three-month period ended June 30, 2011 and $90,373 for the six-month period ended June 30, 2011. As of June 30, 2012, there was $1,258,647 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under all of the Company's stock benefit plans. This cost is expected to be recognized over an average vesting period of 2.6 years.