STOCK COMPENSATION PLANS

9 Months Ended

Sep. 30, 2012

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

7.     STOCK COMPENSATION PLANS

A summary of stock option transactions for the nine months ended September 30, 2012 and 2011, and the year ended December 31, 2011, is as follows:

	September 30,			December 31,			September 30,
	2012			2011			2011
Outstanding shares at beginning of year	392,152			394,072			394,072
Granted during the period	—			—			—
Exercised during the period	—			—			—
Expired / forfeited during the period	—			(1,920		)	—
Surrendered/Echanged for restricted stock	(150,000		)	—			—
Outstanding shares at end of period	242,152			392,152			394,072
Exercisable shares at end of period	107,561			148,861			150,781
Weighted average exercise price per share at end of period	$	9.88		$	10.27		$	10.98
Shares available for grant at end of period	—			—			—

Following is a summary of the options outstanding and exercisable at September 30, 2012:

					Weighted Average
Exercise		Number		Unvested	Remaining
Price		Outstanding	Exercisable	Options	Contractual Life-Years
$	9.16	2,500	1,000	1,500	3.21
$	9.75	217,152	102,061	115,091	2.21
$	10.65	12,500	2,500	10,000	3.00
$	12.00	10,000	2,000	8,000	2.71
		242,152	107,561	134,591	2.31

The Corporation, in August 2012, granted 148,500 Restricted Stock Units (“RSU’s”) to outside members of the Board of Directors and Management.  These RSU’s were granted at a market value of $7.91 and will vest equally over a four year term.  In exchange for the grant of RSU’s various previously issued stock option awards were surrendered.