Stock Compensation Plans

6 Months Ended

Jun. 30, 2013

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

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

7. Stock Compensation Plans

The Corporation’s 2007 Stock Incentive Plan and Trust (the Plan), which is shareholder approved, permits the grant of restricted stock awards and options to its directors, officers and employees for up to 177,496 shares of common stock. Incentive stock options, non-incentive or compensatory stock options and share awards may be granted under the Plan. The exercise price of each option shall at least equal the market price of a share of common stock on the date of grant and have a contractual term of ten years. Options shall vest and become exercisable at the rate, to the extent and subject to such limitations as may be specified by the Corporation. Compensation cost related to share-based payment transactions must be recognized in the financial statements with measurement based upon the fair value of the equity instruments issued.

A summary of option activity under the Plan as of June 30, 2013, and changes during the period then ended is presented below:

					Aggregate		Weighted-Average
			Weighted-Average		Intrinsic Value		Remaining Term
	Options		Exercise Price		(in thousands)		(in years)
Outstanding as of January 1, 2013		86,250	$	24.79	$	-		4.9
Granted		-		-		-		-
Exercised		(1,500)		13.50		-		-
Forfeited		(5,500)		25.28		-		-
Outstanding as of June 30, 2013		79,250	$	24.97	$	65,295		4.3
Exercisable as of June 30, 2013		76,500	$	25.27	$	43,150		4.2

A summary of the status of the Corporation’s nonvested option shares as of June 30, 2013, and changes during the period then ended is presented below:

			Weighted-Average
	Options		Grant-date Fair Value
Nonvested at January 1, 2013		2,750	$	2.43
Granted		-		-
Vested		-		-
Forfeited		-		-
Nonvested as of June 30, 2013		2,750	$	2.43

A summary of the status of the Corporation’s nonvested restricted stock awards as of June 30, 2013, and changes during the period then ended is presented below:

			Weighted-Average
	Shares		Grant-date Fair Value
Nonvested at January 1, 2013		25,650	$	17.30
Granted		-		-
Vested		(1,250)		13.60
Forfeited		-		-
Nonvested as of June 30, 2013		24,400	$	17.49

For the three and six month periods ended June 30, 2013, the Corporation recognized $63,000 and $98,000, respectively, in stock compensation expense, compared to $31,000 and $60,000, respectively, for the same periods in 2012. As of June 30, 2013, there was $224,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over the next 2.4 years. It is the Corporation’s policy to issue shares on the vesting date for restricted stock awards. Unvested restricted stock awards do not receive dividends declared by the Corporation.