Stock Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

2. STOCK COMPENSATION

The Corporation has a stock incentive plan for key employees and independent directors. The stock incentive plan, which is administered by a committee of the Board of Directors, provides for aggregate grants of up to 500,000 shares of common stock in the form of nonqualified options or restricted stock. For key employees, the plan vesting is one-fourth of the granted options or restricted stock per year beginning one year after the grant date, with 100% vested by the fourth anniversary of the grant. For independent directors, the vesting schedule is one-third of the granted options or restricted stock per year beginning one year after the grant date, with 100% vested by the third anniversary of the grant.

At September 30, 2014, there was no unrecognized compensation cost related to nonvested stock options granted under this plan and no stock options were granted during the three and nine month periods ended September 30, 2014 and 2013. At September 30, 2014 and December 31, 2013, the Corporation had 35,500 stock options that were fully vested and exercisable.

Compensation expense for the restricted stock awards is recognized over the requisite service period noted above based on the fair value of the shares at the date of grant. Nonvested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from these restricted stock awards was $118 and $401 for the three and nine months ended September 30, 2014, and $104 and $290 for the three and nine months ended September 30, 2013. As of September 30, 2014, there was $874 of total unrecognized compensation cost related to unvested restricted stock awards.

A summary of changes in nonvested restricted stock awards for the three months ended September 30, 2014 follows:

			Per Share Weighted Average
	Shares		Grant Date Fair Value
Nonvested at beginning of period		70,061	$	16.80
Granted		0		0
Vested		0		0
Nonvested at end of period		70,061	$	16.80

A summary of changes in nonvested restricted stock awards for the nine months ended September 30, 2014 follows:

				Per Share Weighted Average
	Shares			Grant Date Fair Value
Nonvested at beginning of period		62,076		$	16.25
Granted		35,400			17.19
Vested		(27,415	)		16.05
Nonvested at end of period		70,061		$	16.80