Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

(18)    Share-Based Compensation

A broad-based stock incentive plan, the 2006 Stock Incentive Plan, was adopted by the Corporation’s shareholders on April 18, 2006. Awards granted under this Plan as of December 31, 2011 were 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 were made from 2005 to 2007.

As of December 31, 2011 and 2010, there was $307 and $298, respectively, of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.7 years as of December 31, 2011. The total fair value of shares vested during the year ended December 31, 2011 and 2010 was $31 and $64, respectively.

Stock Options

The expense recorded for stock options was $1, $15 and $79 for the years ended December 31, 2011, 2010 and 2009, 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.

The fair value of options granted was determined using the following weighted-average assumptions as of grant date.

	2009
Risk free interest rate		2.27	%
Dividend yield		6.68	%
Volatility		22.97	%

The weighted-average fair value of options granted in 2009 was $5.34.

Options outstanding at December 31, 2011 were as follows:

	Outstanding			Exercisable
	Number		Weighted Average Remaining Contractual Life (Years)	Number		Weighted Average Exercise Price
Range of Exercise Prices
$5.34-$5.34		2,500	7.37		1,667	$  5.34
$14.47-$15.34		82,000	6.10		82,000	14.47
$15.35-$16.50		52,500	5.21		52,500	15.78
$16.51-$19.10		30,000	4.09		30,000	19.10
$19.11-$19.17		30,000	3.09		30,000	19.17
Outstanding at end of period		197,000	5.11		196,167	$16.17

A summary of the status of stock options at December 31, 2011 and December 31, 2010 and changes during the year then ended is presented in the table below:

	2011				2010
	Options		Weighted Average Exercise Price per Share		Options			Weighted Average Exercise Price per Share
Outstanding at beginning of period		197,000	$	16.12		198,000		$	16.12
Granted		—		—		—			—
Forfeited or expired		—		—		(1,000	)		14.47
Exercised		—		—		—			—
Stock dividend or split		—		—		—			—
Outstanding at end of period		197,000	$	16.12		197,000		$	16.12
Exercisable at end of period		196,167	$	16.17		167,996		$	16.50

There were no options exercised during the year ended December 31, 2011 therefore the total intrinsic value of options exercised was $0. The total intrinsic value of all options outstanding for the year ended December 31, 2011 was $0 as a result of their anti-dilutive status.

Restricted Shares

In 2011, the Corporation issued 40,000 shares of long-term restricted stock, 2,500 of which have expired due to employee terminations. The market price of the Corporation’s common shares on the date of grant of the long-term restricted shares was $5.28 per share. In 2010, the Corporation issued 86,852 long-term restricted shares at a weighted average market 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 year ended December 31, 2011 and 2010 was $188 and $87, 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 December 31, 2011 is presented in the table below:

	Nonvested Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2011		86,852		$	4.42
Granted		40,000			5.28
Vested		—			—
Forfeited or expired		(2,500	)		5.28
Nonvested at December 31, 2011		124,352			4.68

Stock Appreciation Rights (“SARS”)

In 2006, the Corporation issued an aggregate of 30,000 SARS at $19.00 per share, 15,500 of which have expired due to employee terminations. The SARS 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 SARS shall expire at the end of the stated term which is specified at the date of grant and shall not exceed ten years. The SARS issued in 2006 will expire in January 2016. The expense recorded for SARS for the years ended December 31, 2011, 2010 and 2009 was $0.