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STOCK-BASED COMPENSATION PLANS (Tables)
 6 Months Ended
Jun. 30, 2013
STOCK-BASED COMPENSATION PLANS [Abstract]  
Options valuation assumptions
The Company uses the Black-Scholes option-pricing model to estimate the fair value of each option granted with the following weighted average assumptions:
 
 
 
Quarters Ended
  
Six Months Ended
 
 
 
June 30,
  
June 30,
 
Valuation Assumptions
 
2012
  
2013
  
2012
  
2013
 
 
 
  
  
  
 
Expected life (1)
  
5.19
   
5.00
   
5.11
   
5.00
 
Risk-free interest rate (2)
  
0.92
%
  
0.84
%
  
0.90
%
  
0.85
%
Expected volatility (3)
  
50
%
  
50
%
  
50
%
  
50
%
Expected dividend yield
  
4.87
%
  
5.08
%
  
4.83
%
  
5.07
%
Expected Forfeiture (4)
  
-
   
17.72
%
  
-
   
17.72
%
                         
(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 June 30, 2013, and changes during the six months 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
  
80,000
  
$
17.34
  
$
17.25 - $17.50
         
Exercised
  
(32,834
)
 
$
17.88
  
$
10.75 - $20.02
         
Cancelled
  
(11,600
)
 
$
17.53
  
$
17.50 - $17.75
         
 
                    
Outstanding at June 30, 2013
  
513,333
  
$
18.50
  
$
10.75 - $21.85
   
4.4
  
$
307
 
 
                    
Exercisable at June 30, 2013
  
299,336
  
$
18.96
  
$
10.75 - $21.85
   
3.4
  
$
186