Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-based Compensation [Abstract]

Share-Based Compensation

Note 4.  Share-Based Compensation

Share-based compensation arrangements include stock options, restricted stock awards, performance-based awards, stock appreciation rights and employee stock purchase plans.  Accounting standards require all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period.

There were no options granted in the first six months of 2011 or in 2010.

On March 9, 2008, the Company's 1998 Stock Option Plan expired.  Options to purchase 197,795 shares of common stock were outstanding under the Company's 1998 Stock Option Plan at June 30, 2011.  The exercise price of each option equals the market price of the Company's common stock on the date of the grant and each option's maximum term is ten years.

Stock option activity for the six months ended June 30, 2011 is summarized below:

						Weighted
						Average
				Weighted		Remaining		Aggregate
				Average		Contractual		Intrinsic
				Exercise		Life		Value
	Shares			Price		(in years)		(in thousands)
Options outstanding, January 1, 2011		225,127		$	19.62
Granted		0			0
Exercised		(18,270	)		12.91
Canceled or expired		(9,062	)		19.14
Options outstanding, June 30, 2011		197,795		$	20.27	4.21	$	0
Options exercisable, June 30, 2011		158,811		$	20.32	3.70	$	0

The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2011.This amount changes based on changes in the market value of the Company's common stock.  As of June 30, 2011, the outstanding options had no intrinsic value because the exercise prices of all outstanding options were above the market value of a share of the Company's common stock.

No in-the-money options were exercised during the six months ended June 30, 2011.  However, four option-holders chose to exercise options where the option price was greater than the current market value.  Proceeds from these exercises were $236 thousand.

As of June 30, 2011, there was $137 thousand of unrecognized compensation cost related to nonvested options.  This cost is expected to be recognized over a weighted-average period of 15 months.