Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 10 – STOCK-BASED COMPENSATION

The Company has three stock-based compensation plans (the Plans), as described below, under which awards have been or may be issued. Total compensation cost that was charged against income for those Plans totaled $6 and $13, respectively, for the three months ended March 31, 2012 and 2011. The total income tax (expense) benefit was $1 and $3, respectively, for the three months ended March 31, 2012 and 2011.

The Plans, which are stockholder-approved, provide for stock option grants and restricted stock awards to directors, officers and employees. The 1999 Stock-Based Incentive Plan, which expired July 13, 2009, provided 38,778 shares for stock option grants and 15,511 shares for restricted stock awards. The 2003 Equity Compensation Plan (2003 Plan), as amended and restated, provided an aggregate of 100,000 shares for stock option grants and restricted stock awards, of which up to 30,000 shares could be awarded in the form of restricted stock awards. The 2009 Equity Compensation Plan, which was approved by stockholders on May 21, 2009, replaced the 2003 Plan and provides 200,000 shares, plus any remaining shares available to grant or that are later forfeited or expire under the 2003 Plan, that may be issued as stock option grants, stock appreciation rights or restricted stock awards.

Stock Options

The Plans permit the grant of stock options to directors, officers and employees for up to 338,778 shares of common stock, net of restricted stock awards. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one to three years and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change in control.

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. Management and other employee stock options are tracked separately. 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. Department of the Treasury (Treasury) yield curve in effect at the time of the grant.

There were no options granted during the three months ended March 31, 2012. The fair value of the options granted during the three months ended March 31, 2011 was determined using the following weighted-average assumptions as of the grant dates.

	Three months ended March 31, 2011
Risk-free interest rate		2.98	%
Expected term (years)		7
Expected stock price volatility		46	%
Dividend yield		1.41	%

A summary of stock option activity in the Plans for the three months ended March 31, 2012 follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Intrinsic Value
Outstanding at beginning of year		43,296		$	24.87
Granted		—			—
Exercised		—			—
Expired		—			—
Cancelled or Forfeited		(230	)		3.73
Outstanding at end of year		43,066		$	24.98		6.1	$	—
Expected to vest		11,980		$	4.96		8.6	$	—
Exercisable at end of period		31,086		$	32.70		5.1	$	—

During the three months ended March 31, 2012, there were 230 stock options canceled or forfeited. Previously recognized expense associated with nonvested forfeited shares is reversed.

Information related to the Plans during the three months ended March 31, 2012 and 2011 follows.

	Three months ended March 31,
	2012		2011
Weighted average fair value of options granted		n/a	$	3.75

As of March 31, 2012, there was $7 of total unrecognized compensation cost related to nonvested stock options granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.2 years. Substantially all of the 11,980 nonvested stock options at March 31, 2012 are expected to vest.

Restricted Stock Awards

The Plans permit the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the shares based on the fair value of the stock at grant date. The fair value of the stock was determined using the closing share price on the date of grant and shares have vesting periods ranging from one to three years. There were 231,842 shares available to be issued, net of option awards under the Plans at March 31, 2012. There were no shares issued during the three months ended March 31, 2012.

A summary of changes in the Company’s nonvested restricted shares for the three months ended March 31, 2012 follows:

Nonvested Shares	Shares		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2012		4,800	$	6.88
Granted		—		—
Vested		—		—
Forfeited		—		—
Nonvested at March 31, 2012		4,800	$	6.88

As of March 31, 2012, there was $9 of total unrecognized compensation cost related to nonvested shares granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.0 year. There were no shares vested during the three months ended March 31, 2012. The total fair value of shares vested during the three months ended March 31, 2011 was $4.