Stock Compensation

3 Months Ended

Mar. 31, 2013

Stock Compensation [Abstract]

Stock Compensation

Note 14.  Stock Compensation

Our stock award plans provide for granting non-qualified stock options, stock awards and restricted stock awards to employees. We recognize stock compensation charges related to stock award plans based on management's best estimates and assumptions that the performance and service requirements of the plan will be achieved. Such compensation charges are recorded based upon the grant date fair value or settlement date fair value (as applicable) of our stock and are recognized over the requisite service period specified by the specific award plans. Share-based compensation expense includes amounts recognized related to the Company Employee Stock Purchase Plan. This plan allows participating employees to acquire shares of common stock at 85% of the average closing price for the five days previous to the purchase date. Stock-based compensation expense was $219,000 and $114,000, respectively, in the three months ended March 31, 2013 and 2012. This includes compensation expense for share-based payment awards granted prior to, but not vested as of March 31, 2013. As of March 31, 2013, we had not yet recognized compensation expense related to non-vested awards totaling $1,789,000. The weighted average period over which this compensation expense will be recognized is 2.63 years.

1993 Stock Award Plan

Long-Term Executive Incentive Program

We carry obligations of $614,000 and $1,028,000 as of March 31, 2013 and December 31, 2012 respectively, related to liability classified awards under the LTEIP that will be settled in company common stock in future periods.

Non-vested restricted stock activity for the quarter ended March 31, 2013 is depicted in the table below. Granted shares represent non-vested shares issued to settle an obligation under the LTEIP plan during the period.

				Weighted Average
	Shares			Fair Value
Non-vested at beginning of period		32,447		$	3.43
Granted/settled		68,699		$	9.83
Vested		(44,099	)	$	5.12
Forfeited		-		$	-
Non-vested at end of period		57,047		$	9.83

Employee Stock Retention

Under this program, designated employees can earn shares of common stock if they complete a requisite service period which typically ranges from 11 to 36 months. Compensation expense related to the Employee Stock Retention program is recognized over the requisite service period.

Retention stock activity for the quarter ended March 31, 2013 was as follows:

				Weighted Average
	Shares			Fair Value
Non-vested at beginning of period		11,150		$	10.28
Granted		27,500		$	8.76
Vested		-		$	-
Forfeited		(800	)	$	10.57
Non-vested at end of period		37,850		$	9.13

Stock Option

Stock options granted may be exercised no later than ten years after the date of grant, with one-third of the options vesting each year. The fair value of each option award is estimated on the date of the grant using a Black-Scholes option valuation model.

A summary of stock option activity is as follows:

				Weighted Average
	Options			Exercise Price
Outstanding at January 1		143,817		$	9.95
Granted		-		$	-
Exercised		(21,667	)	$	8.44
Forfeited		-		$	-
Expired		(15,000	)	$	8.93
Outstanding at March 31		107,150		$	10.40
Exercisable at March 31		100,483		$	10.49

In the first quarter of 2013, we received $183,000 in cash related to stock options exercised during the period.