Stock Compensation Plans

6 Months Ended

Jun. 30, 2011

Stock Compensation Plans [Abstract]

Stock Compensation Plans

Note 5 — Stock Compensation Plans

The Company recorded $67,000, or less than $0.01 per diluted share and $40,000, or less than $0.01 per diluted share, of total stock-based compensation expense for the six-month periods ended June 30, 2011 and June 30, 2010, respectively. The stock-based compensation expense is calculated on a ratable basis over the vesting periods of the related stock options or restricted stock grants and is reported under personnel expense. This expense had no impact on the Company’s reported cash flows. As of June 30, 2011, there was $453,000 of total unrecognized stock-based compensation expense. This expense will be fully recognized by December 31, 2014.

For purposes of determining estimated fair value of the stock options and restricted stock grants, the Company has computed the estimated fair values of all stock-based compensation using the Black-Scholes option pricing model and, for stock options and restricted stock grants granted prior to December 31, 2010, has applied the assumptions set forth in the Annual Report.

On February 9, 2011, the Company’s Board of Directors awarded a total of 83,551 restricted stock units to certain executive officers. The fair value of these restricted stock units is $5.15, which was the closing price of the Company’s common stock on that date. The restricted stock units vest over a period of four years, and are subject to the Company repaying certain portions of the funds it received under the U.S. Department of the Treasury (the “U.S. Treasury”) Capital Purchase Program. The stock-based compensation expense for these awards was immaterial for the second quarter and first six months of 2011. There were no stock options granted in 2011.