STOCK-BASED COMPENSATION PLANS (Tables)

3 Months Ended

Mar. 31, 2013

STOCK-BASED COMPENSATION PLANS [Abstract]

The Company uses the Black-Scholes option-pricing model to estimate the fair value of each option granted with the following weighted average assumptions:

	March 31,
Valuation Assumptions	2012	2013

Expected life (1)	5.0	5.0
Risk-free interest rate (2)	0.88%	0.88%
Expected volatility (3)	50%	49%
Expected dividend yield	4.79%	5.03%
Expected Forfeiture (4)	-	17.72%

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(1) The expected life, in years, of stock options is estimated based on historical experience.

(2) The risk-free interest rate is based on U.S. Treasury bills whose term is consistent with the expected life of the stock options.

(3) The expected volatility is estimated based on historical and current stock price data for the Company.

(4) Forfeitures are estimated based on historical experience.

Summary of option activity

A summary of option activity as of March 31, 2013, and changes during the quarter then ended, is presented below:

	Number of Options	Weighted-Average Exercise Price	Range of Exercise Prices	Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (thousands)
Outstanding at December 31, 2012	477,767	$ 18.63	$ 10.75 - $21.85	4.3	$ 223
Granted	15,000	$ 17.44	$ 17.35 - $17.50
Exercised	(32,834)	$ 17.88	$ 10.75 - $20.02
Cancelled	(1,600)	$ 17.75	$ 17.75 - $17.75

Outstanding at March 31, 2013	458,333	$ 18.65	$ 10.75 - $21.85	4.3	$ 719

Exercisable at March 31, 2013	248,002	$ 18.84	$ 10.75 - $21.85	3.4	$ 386

The weighted average grant date fair values of options granted were $4.84 per share and $5.36 per share during the quarters ended March 31, 2013 and 2012, respectively. Net cash proceeds from the exercise of stock options during the quarters ended March 31, 2013 and 2012 were $43,000 and $0, respectively. The associated income tax effect from stock options exercised during the quarters ended March 31, 2013 and 2012, was approximately ($32,000) and $0, respectively. As of the date of exercise, the total intrinsic values of options exercised during quarters ended March 31, 2013 and 2012 were $146,741 and $131,545, respectively. As of March 31, 2013, there was approximately $466,000 of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted average period of 1.70 years.