Stock Option And Restricted Stock Plans

12 Months Ended

Dec. 31, 2011

Stock Option And Restricted Stock Plans [Abstract]

Stock Option And Restricted Stock Plans

9. STOCK OPTION AND RESTRICTED STOCK PLANS

During 2008, the Company adopted the 2008 Omnibus Equity Plan (the Plan) which replaced the expired 1998 Omnibus Stock Ownership and Long-Term Incentive Plan. The Plan provides for the issuance of up to an aggregate of 200,000 shares of common stock of the Company in the form of stock options, restricted stock awards and performance share awards.

Compensation cost charged to income for the years ended December 31, 2011 and 2010 was approximately $21 thousand and $36 thousand respectively, related to stock options. There was no expense related to restricted stock for the years ended December 31, 2011 and December 31, 2010 as no shares were issued. There was $37 thousand in expense related to restricted stock for the year ended December 31, 2009. There were no shares of restricted stock issued in 2011 or 2010 and there were 1,500 shares issued in 2009 that immediately vested. No income tax benefit was recognized for stock based compensation, as the Company does not have any outstanding nonqualified stock options.

Stock Options

Stock options may be issued as incentive stock options or as nonqualified stock options. The term of the option will be established at the time is it granted but shall not exceed ten years. Vesting will also be established at the time the option is granted. The exercise price may not be less than the fair market value of a share of common stock on the date the option is granted. It is the Company's policy to issue new shares of stock to satisfy option exercises.

Restricted Stock Awards

Restricted stock awards are subject to restrictions and the risk of forfeiture if conditions stated in the award agreement are not satisfied at the end of a restriction period. During the restriction period, restricted stock covered by the award will be held by the Company. If the conditions stated in the award agreement are satisfied at the end of the restriction period, the restricted stock will become unrestricted and the certificate evidencing the stock will be delivered to the employee.

There were no shares of non-vested restricted stock on December 31, 2011 or December 31, 2010.

Performance Shares

Performance shares may be issued based on specific performance criteria such as net income, earnings per share, asset growth, etc. Performance criteria may be different for each issuance and shares will only be issued after the performance criteria have been met. As of December 31, 2011, no performance shares had been issued under the Equity Plan.

A summary of the status of stock options as of December 31, 2011, 2010, and 2009, and changes during the years then ended, is presented below:

	2011				2010					2009
	Number		Weighted Average Option Price		Number			Weighted Average Option Price		Number			Weighted Average Option Price
Options outstanding, beginning of year		28,513	$	27.94		57,335		$	28.31		59,227		$	27.79
Granted		—		—		—			—		—			—
Exercised		—		—		(1,960	)		10.00		(1,892	)		11.98
Expired		—		—		(26,862	)		30.04		—			—
Options outstanding, end of year		28,513	$	27.94		28,513		$	27.94		57,335		$	28.31

The following table summarizes information about the stock options outstanding at December 31, 2011:

	Options Outstanding				Options Exercisable
Exercise Price	Number Outstanding December 31, 2011		Weighted- Average Remaining Contractual Life (Years)		Number Outstanding December 31, 2011		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)
$13.01 – $28.50		7,800		5.0		3,730	$	19.37		3.5
$28.51 – $29.00		13,142		3.8		13,142		28.76		3.8
$29.01 – $32.60		7,571		5.2		4,996		32.60		5.2
		28,513		4.5		21,868	$	28.04		4.0

No intrinsic value existed for options outstanding or options exercisable at December 31, 2011. The aggregate intrinsic value of both options outstanding and options exercisable at December 31, 2010 was less than $1 thousand. No options were exercised in 2011. Cash received for options exercised in 2010 was $19 thousand with an intrinsic value of $3 thousand.

The weighted average fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. No options were granted in 2011, 2010 or 2009.

The total fair value of shares that contractually vested during 2011 and 2010 was $53 thousand and $60 thousand, respectively.

Anticipated total unrecognized compensation costs related to outstanding non-vested stock options will be recognized over the following periods (dollars in thousands):

2012	$	8
2013		2
Total	$	10