STOCK BASED COMPENSATION DISCLOSURE

3 Months Ended

Sep. 30, 2012

STOCK BASED COMPENSATION DISCLOSURE [Abstract]

STOCK BASED COMPENSATION DISCLOSURE

4. STOCK BASED COMPENSATION DISCLOSURE

The Company's 2008 Stock Incentive Plan (the "Plan"), which was approved by shareholders in October 2008, permits the grant of stock options or restricted shares to its directors and employees for up to 152,000 shares (up to 38,000 restricted shares may be issued). Option awards are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest over five years of continuous service and have ten-year contractual terms.

During the three month periods ended September 30, 2012 and 2011, the Company recorded $6 thousand and $6 thousand, respectively, in compensation expense related to our share-based compensation awards. As of September 30, 2012, there was approximately $27 thousand of unrecognized compensation cost related to unvested share-based compensation awards granted in fiscal 2009. That cost is expected to be recognized over the next two years.

In accordance with generally accepted accounting principles (GAAP), the cash flows from the tax benefits resulting from tax deductions in excess of the compensation cost recognized for stock-based awards (excess tax benefits) are classified as financing cash flows.

For purposes of computing results, the Company estimated the fair values of stock options using the Black-Scholes option-pricing model. The model requires the use of subjective assumptions that can materially affect fair value estimates. The fair value of each option is amortized into compensation expense on a straight line basis between the grant date for the option and each vesting date. The fair value of each stock option granted was estimated using the following weighted-average assumptions:

Assumptions
Volatility	7.49	%	to	11.63	%
Interest Rates	2.59	%	to	3.89	%
Dividend Yields	3.94	%	to	4.02	%
Weighted Average Life (in years)	10

The Company had 43,552 non-vested stock options outstanding at September 30, 2012, and 67,374 unvested stock options outstanding at September 30, 2011. There were no stock options exercised or issued during the three months ended September 30, 2012 and 2011.