Note 6 - Stock Based Compensation

6 Months Ended

Jun. 30, 2013

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

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

Note 6. Stock Based Compensation

The Company has a 2005 Stock Option Plan (the Plan) pursuant to which the Company’s Board of Directors may grant stock options to directors, officers and employees. The Plan authorizes grants of options to purchase up to 550,000 shares of the Company’s authorized but unissued common stock. Accordingly, options for the purchase of 435,710 shares of authorized common stock have been issued under the Plan and 114,290 shares of authorized common stock are available for issue under the Plan. There are options for 435,710 shares granted currently outstanding as of June 30, 2013, of which, all options are vested. All stock options have been granted with an exercise price equal to the stock’s fair market value at the date of the grant.  As of June 30, 2013, no options have been exercised. The Company recorded compensation expense of $17 thousand for the six months ended June 30, 2013 and $14 thousand for the six months ended June 30, 2012. The aggregate intrinsic value of outstanding stock options was $0 at June 30, 2013. The weighted average remaining contractual term of outstanding options was 2.87 years at June 30, 2013. No options were granted in the six months ended June 30, 2013 or 2012.

The Board of Directors adopted a Restricted Stock Plan (the Plan) in September 2009 whereby 120,000 shares of the Company’s authorized but unissued common stock was set aside to be granted by the Company’s Board of Directors at its discretion. The principal purpose of the Plan was to make shares available for issue to the executive officers of the Company and the Bank in payment of incentives earned under the Incentive Compensation Plan. 

The restrictions attached to stock issued under the Plan provide for vesting over a five-year period. During the first quarter of 2013, the Company issued 7,781 shares of stock under the Plan, and in the same period of 2012, the Company issued 20,971 shares of stock under the Plan. A summary of the activity for restricted stock awards for the periods indicated is presented below:

	For the six months ended June 30, 2013					For the six months ended June 30, 2012
	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Nonvested at beginning of year		25,896		$	4.76		6,566		$	7.16
Granted		7,781			5.98		20,971			4.20
Vested		(5,831	)		5.03		(1,641	)		7.16
Cancelled		-			-		-			-
Nonvested at the end of the period		27,846		$	5.05		25,896		$	4.76

The remaining unamortized compensation expense for restricted stock was $126 thousand at June 30, 2013 and will be recognized over the next 4.67 years. All compensation expense for stock options has been recognized.