Stock Based Compensation

9 Months Ended

Sep. 30, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

5. Stock Based Compensation

The Corporation follows a fair-value based method for valuing stock-based compensation that measures compensation cost at the grant date based on the fair value of the award.

The fair value of each option grant is estimated on the date of grant using the modified Black-Scholes options-pricing model. In 2012 no options were granted. The following table details the fair value and assumptions used to value stock options as of the grant date that were granted during the nine months ended September 30, 2011:

	2011
Fair value, calculated	$	1.49
Exercise Price	$	2.14
Risk-free interest rate		3.58	%
Expected stock price volatility		57.30	%
Expected dividend yield		0
Expected Life		10 years

A summary of the status of the Corporation’s stock option plans as of September 30, 2012 and December 31, 2011, and changes during the periods ending on those dates is presented below:

	Nine Months ended September 30, 2012					Year ended December 31, 2011
	Shares			Weighted- average exercise price		Shares			Weighted- average exercise price
Outstanding at beginning of period		587,342		$	4.68		463,642		$	5.84
Granted		0			0		161,538			2.14
Exercised		0			0		0			0
Forfeited		(5,454	)		10.63		(29,338	)		7.03
Expired		0			0		(8,500	)		11.93
Outstanding at end of period		581,888		$	4.62		587,342		$	4.68
Options exercisable at period end		395,233		$	5.70		317,467		$	6.58
Weighted-average fair value of options granted during the period				$	N/A				$	1.49

The following information applies to options outstanding at September 30, 2012:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted-Average Remaining Contractual Life (Years)		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$1.90 - $2.51		470,687		7.6	$	2.39		284,032	$	2.42
$8.92		18,877		5.3		8.92		18,877		8.92
$11.36 - $14.16		43,473		3.6		13.69		43,473		13.69
$16.13 - $17.17		48,851		1.5		16.44		48,851		16.44
		581,888		6.7	$	4.62		395,233	$	5.70

In 2009, Camco granted 50,000 restricted shares of stock out of the current authorized common stock related to an employment agreement. The 2009 issuance of restricted stock will vest in four equal annual increments beginning in 2010.

In March 2012, Camco granted 262,492 shares of restricted stock awards with an impact to unearned/deferred compensation of $625,000. The stock was granted under the Camco Financial Corporation 2010 Equity Plan to officers based on 2011 performance. The issuance of the restricted stock vests over three years, 20% on the date of the award, 20% on the date that the Compensation Committee certifies Camco’s 2013 financial results and 60% on the date that the Compensation Committee certifies Camco’s 2014 financial results (such results are expected to be certified in the first quarter of 2014 and 2015, respectively). However, if Camco’s pre-tax earnings for the fiscal year ending December 31, 2013 or 2014 are not equal to or greater than the pre-tax earnings for the fiscal year ending December 31, 2012; the participant will forfeit 25% of the equity award that is to vest on such date. Additionally, the vested shares have restrictions that generally lapse after one year. The grant date fair value per share of restricted stock is the stock price at close on grant date, which is being expensed on a straight-line basis during the vesting period. The shares represented by restricted stock awards are considered outstanding at the grant date, as the recipients are entitled to voting rights and dividends if declared. A summary of restricted stock award activity for the period is presented below:

	Non-vested Number of Shares			Weighted Average Grant Date Fair Value
Non-vested balance at January 1, 2011		37,500		$	2.50
Vested		(12,500	)		2.50
Non-vested balance at December 31, 2011		25,000		$	2.50
Granted		262,492			2.38
Vested		(64,979	)		2.40
Forfeit		(2,524	)		2.38
Non-vested balance at September 30, 2012		219,989		$	2.39

At September 30, 2012, there was approximately $422,000 of compensation cost that has not yet been recognized related to restricted stock awards. That cost is expected to be recognized over a remaining period of two years.