Stock Based Compensation

6 Months Ended

Jun. 30, 2011

Stock Based Compensation [Abstract]

STOCK BASED COMPENSATION

NOTE 6- STOCK BASED COMPENSATION

Restricted Stock Awarded

     During 2011 the Company has made the following restricted stock award grants:

• February 10, 2011 — the Company granted 27,750 restricted stock awards to certain non-executive officers of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $27.58 and vest over a five year period.

• February 17, 2011 — the Company granted 33,000 restricted stock awards to certain executive officers of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $27.43 and vest over a five year period.

• May 3, 2011- the Company granted 3,000 restricted stock awards to a non-executive officer of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $29.00 and vest over a five year period.

• May 24, 2011 — the Company granted 9,800 restricted stock awards to certain directors of the Company and/or Bank. These restricted stock awards were issued from the 2010 Non-Employee Director Stock Plan, were determined to have a fair value per share of $28.875 and vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. If a non-employee director is removed from the Board for cause, the Company has ninety (90) days within which to exercise a right to repurchase any unvested portion of any restricted stock award from the non-employee director for the aggregate price of one dollar ($1.00).

     The fair value of the awards is based upon the average of the high and low price at which the Company’s common stock traded on the date of grant. The holders of these awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights.

Stock Options

     During 2011 the Company has made the following awards of non-qualified options to purchase shares of common stock:

• February 10, 2011 — the Company awarded 40,000 non-qualified options to certain non-executive officers of the Company and/or Bank. The options have been determined to have a fair value of $6.80 and will vest over a three year period and have a contractual life of ten years from date of grant.

• February 17, 2011 — the Company awarded 54,000 non-qualified options to certain executive officers of the Company and/or Bank. The options have been determined to have a fair value of $6.39 and will vest over a three year period and have a contractual life of ten years from date of grant.

• On May 24, 2011 the Company awarded 7,000 non-qualified options to certain directors of the Company and/or Bank. The options have been determined to have a fair value of $6.723, will vest over a three year period ending on January 1, 2013 and have a contractual life of ten years from date of grant.

     The following table shows the assumptions used to determine the fair value of the options:

	February 10,			February 17,			May 24,
	2011			2011			2011
Volatility		32.38	%		32.11	%		32.95	%
Expected Life	5.5 Years			5 Years			5 Years
Dividend Yield		2.90	%		2.89	%		2.87	%
Risk Free Interest Rate		2.57	%		2.27	%		1.81	%