Compensation Related Costs, Share Based Payments

3 Months Ended

Jun. 30, 2011

Compensation Related Costs, Share Based Payments

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

9.             Share-Based Compensation

Total share-based compensation expense was $9,000 and $19,000 for the three months ended June 30, 2011 and 2010, respectively, and $25,000 and $38,000 for the six months ended June 30, 2011 and 2010, respectively.  Related tax benefits of $3,000 and $7,000 were recognized for the three months ended June 30, 2011 and 2010, respectively, and $9,000 and $13,000 for the six months ended June 30, 2011 and 2010, respectively.

Under the terms of the Company’s stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and vesting periods range from three to four years.  The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards.  Restricted shares are valued at the quoted market price of the shares at the date of grant, and have a three year vesting period.

Stock Options

The following table summarizes information regarding outstanding and exercisable options as of June 30, 2011:

		Outstanding		Exercisable
Number of options		329,511		307,288
Weighted average exercise price per share	$	10.51	$	10.88
Aggregate intrinsic value of options	$	16,001	$	5,334
Weighted average contractual term remaining		3.53 years		3.10 years

The Company’s stock option activity for the six months ended June 30, 2011 is as follows:

	No. of	Weighted
	Shares	Average
	Under	Exercise
	Option	Price
Balance, December 31, 2010	359,234	$	9.95
Grants	13,334		5.85
Expired	(31,668)		4.50
Exercised	(11,389)		4.17
Balance, June 30, 2011	329,511	$	10.51

The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model.  The weighted average grant-date fair-value of options granted during the six months ended June 30, 2011 and 2010 was $3.24 and $2.79 per share, respectively.  The assumptions set forth in the table below were used to value the stock options granted during the six months ended June 30, 2011 and 2010:

		June 30,
		2011		2010
Weighted-average risk-free interest rate		2.95%		3.69%
Annual dividend rate per share	$	-	$	-
Weighted-average volatility factor of the Company's common stock		37.07		45.00
Weighted-average expected term of options		5 years		5 years

Compensation expense of $6,000 and $14,000 was recognized for the three months ended June 30, 2011 and 2010, respectively, and of $18,000 and $28,000 for the six months ended June 30, 2011 and 2010, respectively, for the portion of the fair value of stock options vesting during that period.

As of June 30, 2011, there was approximately $76,000 of total unrecognized compensation expense related to non-vested options which will be recognized over the remaining requisite service periods.

Restricted Stock

The Company issued 12,000 restricted stock awards in the second quarter of 2008, with a weighted average grant-date fair value of $6.92 per share.  No restricted stock awards were issued in 2010 and 2011.  Restricted stock expense was $3,000 and $5,000, for the three months ended June 30, 2011 and 2010, respectively, and $7,000 and $10,000 for the six months ended June 30, 2011 and 2010, respectively.

The following table summarized restricted stock activity for the six months ended June 30, 2011:

		Weighted
	No. of	Average
	Non-vested	Exercise
	Shares	Price
Balance, December 31, 2010	2,500	$	6.92
Vested	(2,000)		6.92
Forfeited	(500)		6.92
Balance, June 30, 2011	0	$	0