Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 15 – Stock-Based Compensation

The Company has two share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $88 thousand and $132 thousand for 2011 and 2010.

Stock Option Plans

In 2008, we adopted the 2008 Long-Term Incentive Plan (“2008 LTIP”), which is shareholder approved. The 2008 LTIP replaced the Company’s 1996 Long-Term Incentive Plan (“1996 LTIP”) and 1996 Stock Option Plan (“Stock Option Plan”), which have expired and are no longer effective except as to outstanding awards. The 2008 LTIP permits the grant of non-qualified and incentive stock options, stock appreciation rights, full value awards and cash incentive awards to the Company’s non-employee directors and certain officers and employees for up to 351,718 shares of common stock. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have vesting periods ranging from immediate vesting to 5 years and have 10-year contractual terms. The Company has a policy of using shares held as treasury stock to satisfy share option exercises. Currently, the Company has a sufficient number of treasury shares to satisfy expected share option exercises.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

There were no options granted during 2011 and 8,750 options were granted during 2010. The fair value of options granted was determined using the following weighted average assumptions as of the grant date.

	2010
Risk free interest rate		3.68	%
Expected term		10 years
Expected stock price volatility		102.91	%
Dividend yield		3.33	%

A summary of the activity in the plans for 2011 follows:

	1996 and 2008 LTIP				Stock Option Plan				Total
	Number Outstanding		Weighted Average Exercise Price		Number Outstanding		Weighted Average Exercise Price		Number Outstanding		Weighted Average Exercise Price
Outstanding at January 1, 2011		222,793	$	6.57		4,282	$	9.91		227,075	$	6.63
Granted		—		—		—		—		—		—
Forfeited or expired		—		—		—		—		—		—
Outstanding at December 31, 2011		222,793	$	6.57		4,282	$	9.91		227,075	$	6.63
Vested or expected to vest		222,793	$	6.57		4,282	$	9.91		227,075	$	6.63
Exercisable at December 31, 2011		155,793	$	7.11		4,282	$	9.91		160,075	$	7.19

At December 31, 2011, options outstanding and options exercisable had a weighted average remaining contractual term of 5.49 years and 6.49 years, respectively. Options outstanding and options exercisable had no intrinsic value at December 31, 2011.

There were no options exercised during 2011 and 2010. Unrecognized compensation cost related to nonvested stock options granted under the plans totaled $164 thousand as of December 31, 2011. The cost is expected to be recognized over a weighted average period of 2.0 years.

Share Award Plans

With the adoption of the 2008 LTIP, the Recognition and Retention Plan (“RRP”) and the Performance Equity Program (“PEP”), which provided for the issuance of shares to non-employee directors and certain officers and employees, were terminated and no further grants were made pursuant to the plans.

A summary of changes in the Company’s nonvested PEP shares for the year follows:

	Shares			Weighted Average Grant  Date Fair Value
Nonvested at January 1, 2011		600		$	10.25
Vested		(600	)		10.25
Nonvested at December 31, 2011		—		$	—

As of December 31, 2011, there was no unrecognized compensation cost related to nonvested shares granted under the PEP Plan. The total fair value of shares vested for the PEP Plan during the years ended December 31, 2011 and 2010 was $6 thousand, respectively.