Stock Based Compensation

9 Months Ended

Sep. 30, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 5 – Stock Based Compensation

The Company accounts for stock based payments in accordance with the provisions of the Stock Compensation Topic of the Codification, ASC 718, based on the grant date fair value and using the straight-line expense attribution method.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected price volatility, the expected term and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following assumptions were used to estimate the fair value of options granted during the nine-month periods ended September 30, 2012 and September 30, 2011, using the Black-Scholes option-pricing model.

	Nine Months Ended			Nine Months Ended
	September 30, 2012			September 30, 2011
Expected dividend yield		2.73	%		1.57 - 2.66	%
Expected stock price volatility		53.52 - 57.19	%		48.80 - 53.21	%
Risk-free interest rate		1.24 - 1.33	%		1.33 - 2.84	%
Weighted-average expected life of options		6.21 - 7.70	years		6.28 - 7.63	years
Forfeiture rate		1.00 - 3.00	%		1.00 - 3.00	%

The number of options and shares of restricted stock granted during the three and nine-month periods ended September 30, 2012, was 28 and 276, respectively. The number of options and shares of restricted stock granted during the three and nine-month periods ended September 30, 2011 was 9 and 204, respectively. The total fair value of options and restricted stock granted during the three and nine-month periods ended September 30, 2012, was $197 and $2,349, respectively. The total fair value of options and restricted stock granted during the three and nine-month periods ended September 30, 2011, was $84 and $2,505, respectively. As of September 30, 2012 and September 30, 2011, respectively, there was $2,631 and $2,981 of total unrecognized compensation cost related to nonvested options and restricted shares outstanding. That cost is expected to be recognized over a weighted average period of approximately two years. Expense recognized for the three and nine-month periods ended September 30, 2012 was $424 and $2,665, respectively, reflecting an increase in the level of grants and the related plan provisions for rights upon retirement. Expense recognized for the three and nine-month periods ended September 30, 2011 was $508 and $1,578, respectively.