STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. STOCK-BASED COMPENSATION

The Company has stock option and incentive arrangements to attract and retain key personnel. In May 2005, the 2005 Equity Compensation Plan (the “Plan”) was approved by the shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service based awards is recognized over the vesting period. Performance based awards are recognized based on a vesting, if applicable, and the probability of achieving the goals.

Stock-based compensation expense totaled $134,305 and $65,522 for the three months ended March 31, 2013 and 2012, respectively, which consisted of grants of restricted stock and restricted stock units. Stock-based compensation for the three months ended March 31, 2013 and 2012 included director compensation of $3,320 and $6,807, respectively, for stock granted in lieu of cash compensation. All outstanding options are fully vested and the Company has not granted any stock options since 2007.

The fair value of the Company’s employee stock options granted is estimated on the date of grant using the Black-Scholes option pricing model. The Company estimates expected market price volatility and expected term of the options based on historical data and other factors.

The exercise price for options granted is set at the discretion of the committee administering the Plan, but is not less than the market value of the shares as of the date of grant. An option’s maximum term is 10 years and the options vest at the discretion of the committee.

The following tables below summarize outstanding and exercisable options at March 31, 2013 and December 31, 2012.

				Weighted				Weighted-Average
				Average		Aggregate		Contractual Life
				Exercise		Intrinsic		Remaining In
	Shares			Price		Value		Years
Outstanding at January 1, 2013		236,059		$	18.49	$	164,304
Granted at fair value		-			-
Exercised		(2,518	)		13.19		10,248
Expired		-			-
Forfeited		(1	)		13.19
Outstanding at March 31, 2013		233,540		$	18.55	$	225,938		1.0
Exercisable at March 31, 2013		233,540		$	18.55	$	225,938		1.0

				Weighted				Weighted-Average
				Average		Aggregate		Contractual Life
				Exercise		Intrinsic		Remaining In
	Shares			Price		Value		Years
Outstanding at January 1, 2012		264,156		$	17.90	$	175,911
Granted at fair value		-			-
Exercised		(24,780	)		12.25		88,607
Expired		-			-
Forfeited		(3,317	)		18.25
Outstanding at December 31, 2012		236,059		$	18.49	$	164,304		1.0
Exercisable at December 31, 2012		236,059		$	18.49	$	164,304		1.0

Options outstanding are all currently exercisable and are summarized as follows:

Number Outstanding		Weighted Average	Weighted Average
March 31, 2013		Remaining Contractual Life	Exercise Price
	49,340	1 years	$	12.94
	82,651	2 years		15.89
	80,138	3 years		22.29
	21,411	5 years		27.70
	233,540		$	18.55

The aggregate intrinsic value of outstanding stock options and exercisable stock options was $225,938 and $164,304 at March 31, 2013 and December 31, 2012, respectively. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $16.50 and $15.98 at March 31, 2013 and December 31, 2012, respectively, and the exercise price multiplied by the number of options outstanding.

The Company has outstanding restricted stock and stock units granted in accordance with the Plan. The following tables summarize the unvested restricted stock awards and units outstanding at March 31, 2013 and December 31, 2012, respectively.

	Restricted Stock					Restricted Stock Units
	Number of Shares			Weighted  Average Grant  Date Fair Value		Number of Units			Fair Value
Nonvested at January 1, 2013		23,569		$	15.64		5,211		$	15.98
Granted		13,656			18.00		2,105			16.87
Vested		(16,678	)		16.35		(3,106	)		15.98
Nonvested at March 31, 2013		20,547		$	16.63		4,210		$	16.50

	Restricted Stock					Restricted Stock Units
	Number of Shares			Weighted  Average Grant  Date Fair Value		Number of Units			Fair Value
Nonvested at January 1, 2012		8,113		$	16.47		6,845		$	15.00
Granted		23,281			15.21		2,105			15.98
Vested		(7,825	)		15.20		(3,739	)		14.80
Nonvested at December 31, 2012		23,569		$	15.64		5,211		$	15.98