Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

Note 8.    Stock-Based Compensation Plans

We account for our stock-based compensation plans in accordance with the provisions of Accounting Standards Codification 718, “Stock Compensation,” which requires that a company measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized in the statement of operations over the period during which an employee is required to provide service in exchange for the award.

Stock Option Grants

The following is a summary of the changes in outstanding stock options for the nine months ended September 30, 2011:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at December 31, 2010		312,024		$	13.12		3.2
Expired		(49,324	)	$	15.74		-
Exercised		(17,000	)	$	11.91		-
Forfeited, other		(1,500	)	$	14.23		3.0
Outstanding and exercisable at September 30, 2011		244,200		$	12.67		3.1

The aggregate intrinsic value of all outstanding stock options as of September 30, 2011 was $0.2 million.  All outstanding stock options as of September 30, 2011 are fully vested and exercisable.  The total intrinsic value of options exercised was $42,489 for the nine months ended September 30, 2011.  There were no options granted in the nine months ended September 30, 2011.

Restricted and Performance Stock Grants

As part of the 2006 Omnibus Incentive Plan, we currently grant shares of restricted and performance-based stock to eligible employees and directors.  Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature.  Performance-based shares are subject to a three year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant.  Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly.  Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives certain restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65.  Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.  Forfeitures on restricted stock grants are estimated at 5% for employees and 0% for executives and directors, respectively, based on our evaluation of historical and expected future turnover.

Our restricted and performance-based share activity was as follows for the nine months ended September 30, 2011:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2010		364,800		$	10.68
Granted		203,750			12.21
Vested		(68,575	)		6.69
Forfeited		(35,575	)		7.34
Balance at September 30, 2011		464,400		$	12.19

We recorded compensation expense related to restricted shares and performance-based shares of $1,162,000 ($722,000 net of tax) and $874,000 ($550,000 net of tax) for the nine months ended September 30, 2011 and 2010, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $4.1 million at September 30, 2011, and is expected to be recognized as they vest over a weighted average period of 5.2 and 0.6 years for employees and directors, respectively.