Note 5: Benefit Plans

9 Months Ended

Sep. 30, 2012

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

Note 5:  Benefit Plans

The Company has stock-based employee compensation plans, which are described in the Company’s December 31, 2011 Annual Report on Form 10-K.

The table below summarizes transactions under the Company’s stock option plans for nine months ended September 30, 2012:

	Number of shares
	Incentive Stock Option			Non-Incentive Stock Option		Weighted Average Exercise Price
Balance outstanding as of January 1, 2012		184,500			167,000	$	16.09
Granted		-			-		-
Exercised		(2,003	)		-		6.19
Forfeited		(7,997	)		-		6.19
Balance outstanding as of September 30, 2012		174,500			167,000		16.38
Options exercisable as of September 30, 2012		130,700			131,000		18.96

Stock-based compensation expense related to the stock option plans recognized for the three months ended September 30, 2012 and 2011 was $16,911 and $24,333, respectively.  Stock-based compensation expense related to the stock option plans recognized for the nine months ended September 30, 2012 and 2011 was $48,017 and $75,744, respectively.  As of September 30, 2012, there was $99,719 of unrecognized compensation expense related to nonvested stock options, which will be recognized over the remaining vesting period.

In January 2012, the Company granted restricted stock to directors pursuant to the 2010 Equity Plan that was fully vested and thus, expensed in full during the first quarter ended March 31, 2012.  The amount expensed was $110,009 for the quarter which represents 18,520 shares of common stock at a market price of $5.94 at the date of grant. In January 2011, the Company expensed $100,017 for restricted stock granted to directors under the Plan.

During the nine months ended September 30, 2012, the Company granted 27,312 shares of restricted stock to officers pursuant to the 2010 Equity Plan that have a cliff vesting at the end of two years, except for the CEO, who has a three year cliff vesting.  The expense is being recognized over the applicable vesting period.  The amount expensed during the three and nine months ended September 30, 2012 was $23,146 and $61,706, respectively. As of September 30, 2012, there was $124,458 of unrecognized compensation expense related to nonvested restricted stock grants, which will be recognized over the remaining vesting period.