11. Share Based Compensation

6 Months Ended

Jun. 30, 2014

Shares Held in Employee Stock Ownership Plan [Abstract]

Stock Option Plan

The 2014 Long-Term Incentive Plan (“2014 LTIP”) was adopted by our shareholders in May 2014 to enhance the ability of the Company to attract and retain exceptionally qualified individuals to serve as key employees. The LTIP provides for the issuance of up to 500,000 shares of common stock, in the form of equity awards including stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, other stock-based awards or any combination thereof,  to our key employees.  No awards have been granted under the 2014 LTIP.

Stock options awarded under the 2009 Officer Stock Option Plan and the 1998 Officer Stock Option Plan (collectively, the “Plans”) were not altered by the 2014 LTIP, and remain subject to the terms of the Plans.  However, under the terms of the 2014 LTIP, all shares of common stock remaining issuable under the Plans at the time the 2014 LTIP was adopted ceased to be available for future issuance.

The fair value of our employee stock options granted under the Plans is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Because our employee stock options have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options at the time of grant.  There were no options granted during the first six months of 2014 or 2013.

We recognize compensation expense based on the estimated number of stock awards expected to actually vest, exclusive of the awards expected to be forfeited.  During the first six months of 2014 and 2013, our stock compensation expense and related deferred taxes were insignificant.

A summary of activity in our Plans during the first six months of 2014 and 2013 is as follows:

	For the Six Months Ended June 30,
	2014				2013
			Weighted-Average				Weighted-Average
	Options		Exercise Price		Options		Exercise Price
Outstanding, January 1	185,410		$	19.59	249,700		$	18.98
Granted	-			-	-			-
Exercised	(3,200	)		4.63	(12,000	)		5.09
Forfeited	-			-	(1,750	)		19.69
Expired	(2,500	)		17.43	(39,700	)		23.41
Outstanding, June 30	179,710		$	19.88	196,250		$	18.92

Other information regarding options outstanding and exercisable at June 30, 2014 is as follows:

		Options Outstanding						Options Exercisable
					Wted. Avg.	Aggregate					Aggregate
					Remaining	Intrinsic					Intrinsic
Range of		# of			Contractual	Value		# of			Value
exercise price		shares	WAEP		Life (yrs)	(in thousands)		shares	WAEP		(in thousands)
$	2.54 - $6.00	13,550	$	4.69	4.20	$	81	11,550	$	5.06	$	64
	6.01 - 10.00	23,160		9.07	2.73		36	22,560		9.14		34
	10.01 - 17.50	-		-	-		-	-		0		-
	17.51 - 20.00	38,500		17.80	2.50		-	38,500		17.8		-
	20.01 - 25.93	104,500		25.04	2.24		-	104,500		25.04		-
		179,710		19.88		$	117	177,110		20.12	$	98