Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Share-Based Compensation

(13) Share-Based Compensation

A broad-based stock option incentive plan, the 2006 Stock Incentive Plan, was adopted by the Corporation’s shareholders on April 18, 2006. As of June 30, 2011, outstanding awards granted under this Plan consisted of stock options granted in 2007, 2008 and 2009 and long-term restricted shares issued in 2010 and 2011. In addition, the Corporation has nonqualified stock option agreements outside of the 2006 Stock Incentive Plan. Grants under the nonqualified stock option agreements have been made from 2005 to 2007.

     Stock Options

The expense recorded for stock options was $0 and $9 for the first six months of June 30, 2011 and June 30, 2010, respectively. The maximum option term is ten years and the options generally vest over three years as follows: one-third after one year from the grant date, two-thirds after two years and completely after three years.

Options outstanding at June 30, 2011 were as follows:

	Outstanding				Exercisable
			Weighted
			Average
			Remaining				Weighted
			Contractual Life				Average
	Number		(Years)		Number		Exercise Price
Range of Exercise Prices
$5.34-$5.34		2,500		7.88		1,667	$	5.34
$14.47-$15.34		82,000		6.60		82,000		14.47
$15.35-$16.50		52,500		5.71		52,500		15.78
$16.51-$19.10		30,000		4.59		30,000		19.10
$19.11-$19.17		30,000		3.59		30,000		19.17
Outstanding at end of period		197,000		5.62		196,167	$	16.17

A summary of the status of stock options at June 30, 2011 and June 30, 2010 and changes during the six months then ended is presented in the table below:

	2011				2010
			Weighted				Weighted
			Average Exercise				Average Exercise
	Options		Price per Share		Options		Price per Share
Outstanding at beginning of period		197,000	$	16.12		198,000	$	16.12
Granted		—		—		—		—
Forfeited or expired		—		—		—		—
Exercised		—		—		—		—
Stock dividend or split		—		—		—		—
Outstanding at end of period		197,000	$	16.12		198,000	$	16.12
Exercisable at end of period		196,167	$	16.17		161,996	$	16.54

There were no options exercised during the first six months of 2011, therefore the total intrinsic value of options exercised was $0. The total intrinsic value of all options outstanding for the first six months of 2011 was $0.

A summary of the status of nonvested stock options at June 30, 2011 is presented in the table below:

			Weighted Average
	Nonvested		Exercise Price per
	Shares		share
Nonvested at January 1, 2011		29,004	$	13.95
Granted		—		—
Vested		28,171		14.20
Forfeited or expired		—		—
Nonvested at June 30, 2011		833		5.34

     Restricted Shares

In January 2011, the Corporation issued 40,000 shares of long-term restricted stock at the current market price of the Corporation’s stock on the date of grant which was $5.28 per share. In 2010, the Corporation issued 86,852 shares of long-term restricted stock at a weighted average price of $4.42 per share. Shares of long-term restricted stock generally vest in two equal installments on the second and third anniversaries of the date of grant, or upon the earlier death or disability of the recipient or a qualified change of control of the Corporation. The expense recorded for long-term restricted stock for the six months ended June 30, 2011 and 2010 was $92 and $33, respectively.

The market price of the Corporation’s common shares at the date of grant is used to estimate the fair value of restricted stock awards. A summary of the status of restricted shares at June 30, 2011 is presented in the table below:

			Weighted Average
			Grant Date Fair
	Nonvested Shares		Value
Nonvested at January 1, 2011		86,852	$	4.42
Granted		40,000		5.28
Vested		—
Forfeited or expired		—		—
Nonvested at June 30, 2011		126,852		4.69

     Stock Appreciation Rights (“SAR”)

In 2006, the Corporation issued an aggregate of 30,000 stock appreciation rights (“SAR”) at $19.00 per share, 15,500 of which have expired due to employee terminations. The SAR vest over three years as follows: one-third after one year from the grant date, two-thirds after two years and completely after three years. Any unexercised portion of the SAR shall expire at the end of the stated term which is decided at the date of grant and shall not exceed ten years. The SAR issued in 2006 will expire in January 2016. The expense recorded for SAR for the first half of 2011 and 2010 was $0.