STOCK COMPENSATION EXPENSE (Tables)

6 Months Ended

Jun. 30, 2012

STOCK COMPENSATION EXPENSE [Abstract]

Assumption used in the Black-Scholes option-pricing model

The fair value of the Company's employee stock options granted 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. The assumptions used in the Black-Scholes option-pricing model are as follows

	2012			2011			2010
Risk-free interest rate		2.31	%		3.58	%		3.65	%
Expected option life (yrs)		10.00			10.00			10.00
Expected stock price volatility		34.93	%		30.01	%		24.67	%
Dividend yield		2.68	%		4.03	%		4.94	%
Weighted average fair value of options granted during the year	$	2.34		$	1.63		$	1.41

Summary of stock option activity

A summary of the Company's stock option activity and related information is presented below for the six months ended June 30:

	2012					2011
				Weighted Average Exercise				Weighted Average Exercise
	Options			Price		Options		Price
Outstanding at beginning of year		350,949		$	9.69		255,649	$	10.77
Grants		105,700			7.47		102,000		6.95
Exercises		-			-		-		-
Forfeitures or expired		(7,000	)		7.73		-		-
Outstanding at June 30,		449,649		$	9.20		357,649	$	9.68
Exercisable at June 30,		265,696					209,996
Weighted average remaining life of options outstanding		6.8					6.9
Weighted average fair value of options granted during the year	$	2.34				$	1.63

Stock option activity by range of exercise prices

Additional information regarding stock options outstanding and exercisable at June 30, 2012, is provided in the following table:

		Outstanding						Currently Exercisable
Range of Exercise Prices		Number		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value
$	6.50 to $10.00		325,016	$	7.51	$	74		141,063		5.9	$	7.66	$	48
$	10.01 to $12.50		28,333		11.62		-		28,333		2.6		11.62		-
$	12.51 to $15.00		68,800		13.47		-		68,800		5.2		13.47		-
$	15.01 to $17.50		27,500		16.00		-		27,500		3.6		16.00		-
Outstanding - Jun 30, 2012			449,649		9.20	$	74		265,696		5.1		10.45	$	48