Share-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-Based Compensation

Share-Based Compensation

9. Share-Based Compensation

The total compensation expense recognized for share-based compensation was $108,000 and $152,000 for the three months ended March 31, 2013 and 2012, respectively. There was no tax benefit or expense related thereto for each period presented. Recognized stock compensation was reduced for estimated forfeitures prior to vesting primarily based on historical annual forfeiture rates of approximately 3.1% and 3.9%, as of March 31, 2013 and 2012, respectively. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances. Executive officers and management were awarded an incentive bonus of $133,100 and $150,300 in February 2013 and 2012, respectively, based on meeting certain performance metrics included in the Executive and Key Management Compensation Plan.  In accordance with the plan, the incentive award was settled through the issuance of 33,187 and 39,294 shares of common stock in February 2013 and 2012, respectively.

Stock Options

A summary of stock option award activity as of and for the three months ended March 31, 2013 is as follows:

							Weighted
			Weighted		Weighted		Average	Aggregate
			Average		Average		Remaining	Intrinsic
			Exercise		Grant-Date		Contractual	Value
	Shares		Price		Fair Value		Term (years)	$(000)(1)
Outstanding at December 31, 2012	79,000		$	23.52
Forfeited or cancelled	(19,000	)	$	35.82	$	12.29
Outstanding at March 31, 2013	60,000		$	19.63	$	7.33	4.1	$	—
Exercisable at March 31, 2013	55,000		$	20.94	$	7.77	3.9	$	—
Expected to vest at March 31, 2013 (2)	3,600		$	5.20	$	2.48	5.9	$	—

(1)   For in-the-money options

(2) Options expected to vest reflect estimated forfeitures

There were no stock options granted or exercised in the three months ended March 31, 2013 or 2012. The fair values of shares vested were $12,000 for the three months ended March 31, 2013 and 2012. As of March 31, 2013, there was $12,000 of total unamortized compensation expense for awards granted under the stock option plans that is expected to be recognized over a weighted average period of 1 year.

Restricted Stock

During the three months ended March 31, 2013, 19,148 shares of restricted stock vested as directors’ and management service requirements were met.

A summary of restricted stock activity as of and for the three months ended March 31, 2013 is as follows:

			Weighted
			Average
			Grant-Date
	Shares		Fair Value
Nonvested balance at December 31, 2012	94,137		$	5.56
Vested	(19,148	)	$	4.65
Nonvested balance at March 31, 2013	74,989		$	5.94