Stock Options

6 Months Ended

Jun. 30, 2011

Stock Options [Abstract]

STOCK OPTIONS

NOTE E — STOCK OPTIONS

Shareholders of the Company approved a stock option plan in April 2000 and a stock incentive plan in June 2005. The plans authorized the Company to issue up to 115,500 and 157,500 shares, respectively. In May 2008, shareholders of the Company ratified amendments to the Stock Incentive Plan of 2005, which among other things increased the authorized shares for issuance from 157,500 to 300,000. On March 20, 2010, the April 2000 stock option plan terminated. As of June 30, 2011, there were 99,007 shares available for future issuance under the 2005 plan.

A summary of stock option activity is as follows for the six months ended June 30, 2011:

			Weighted Average
	Shares		Price
Outstanding at beginning of year		218,977	$	21.29
Granted		8,075		12.70
Exercised		—		—
Forfeited		6,026		18.23
Outstanding at June 30, 2011		221,026	$	21.06
Options exercisable at June 30, 2011		141,276	$	20.85

The Company recorded compensation expense of $30,000 and $38,000, respectively, related to stock options during the six month periods ended June 30, 2011 and 2010.

Restricted Stock — Shares of restricted stock may also be granted under the Stock Incentive Plan of 2005. Compensation expense is recognized over the vesting period of the shares based on the market value of the shares on the grant date. All shares of restricted stock issued and outstanding vest 20% per year over five years. Compensation expense related to the award of shares of restricted stock was $40,000 and $37,000, respectively, during the six months ended June 30, 2011 and 2010. As of June 30, 2011, there was $440,000 of total unrecognized compensation expense related to non-vested shares of restricted stock granted under the plan, which is expected to be recognized over a weighted average period of 4.0 years.

				Weighted
				Average
				Grant
				Date Fair
	Shares			Value
Nonvested at January 1, 2011		30,593		$	10.46
Granted		18,525			12.70
Vested		(7,166	)		11.24
Forfeited		(643	)		10.17
Nonvested at June 30, 2011		41,309		$	11.33