STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2011

STOCK-BASED COMPENSATION PLANS [Abstract]

STOCK-BASED COMPENSATION PLANS

11. STOCK-BASED COMPENSATION PLANS: The Company has two active stock-based compensation plans, which provide for the granting of nonqualified and incentive stock options, as well as restricted stock awards and stock appreciation rights to officers, employees and key persons. At December 31, 2011, approximately 65,000 shares of common stock were reserved for future issuance of stock options, restricted stock and stock appreciation rights. Each plan grants options at the market value of the Company's stock on the date of such grant and all options expire ten years after granted.  The terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee with vesting ranging from one to ten years.  Generally the awards vest based upon time-based conditions. Stock option exercises are funded through the issuance of the Company's common stock. Stock compensation expense for the years ended December 31, 2011 and 2010 was $152,000 and $656,000, respectively.

The following table summarizes activity in stock options:

December 31,	2011							2010
						Average
				Weighted-		Remaining					Weighted-
				Average		Contractual					Average
				Exercise		Term					Exercise
	Options			Price		(in years)		Options			Price
		314,000		$	4.24		3		476,000		$	3.58
Granted		-			-		-		-			-
Forfeited		(62,000	)		5.24		-		(34,000	)		6.20
Exercised		(2,000	)		.60		-		(128,000	)		1.26
Outstanding at end of  year		250,000		$	4.03		3		314,000		$	4.24
Outstanding and exercisable at end of year		207,000		$	4.44		3		258,000		$	4.73
Weighted-average fair value of options granted during the year					-							-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2011:

		Options Outstanding						Options Exercisable
				Weighted-
				average		Weighted-				Weighted-
				Remaining		average				average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life/Years		Price		Exercisable		Price
$	2.00		83,000		3	$	2.00		40,000	$	2.00
$	3.01 - $3.70		4,000		2	$	3.60		4,000	$	3.60
$	4.51 - $5.96		163,000		2	$	5.07		163,000	$	5.07
$	2.00 - $5.96		250,000		3	$	4.03		207,000	$	4.44

At December 31, 2011, the aggregate intrinsic value of options outstanding was $138,000 and the aggregate intrinsic value of options exercisable was $67,000. At December 31, 2010, the aggregate intrinsic value of options outstanding was $156,000 and the aggregate intrinsic value of options exercisable was $55,000. The intrinsic value of options exercised during the years ended December 31, 2011 and 2010 was approximately $7,000 and $257,000, respectively.

The following table summarizes the Company's nonvested stock option activity for the year ended December 31, 2011:

	Number of			Weighted-Average
	Shares			Grant-Date Fair Value
Nonvested stock options at January 1, 2011		57,000		$	1.02
Granted		-			-
Vested		(14,000	)		1.02
Forfeited		-			-
Nonvested stock options at December 31, 2011		43,000		$	1.02

At December 31, 2011, there was approximately $6,000 of unearned compensation cost related to the above non-vested stock options.  The cost is expected to be recognized over approximately the next two years.

The following table summarizes the Company's nonvested stock option activity for the year ended December 31, 2010:

	Number of			Weighted-Average
	Shares			Grant-Date Fair Value
Nonvested stock options at January 1, 2010		71,000		$	1.02
Granted		-			-
Vested		(14,000	)		1.02
Forfeited		-			-
Nonvested stock options at December 31, 2010		57,000		$	1.02

The Company's stock based employee compensation plans allow for the issuance of restricted stock awards that may not be sold or otherwise transferred until certain restrictions have lapsed. The unearned stock-based compensation related to restricted stock granted is being amortized to compensation expense over the vesting period, which ranges from two to ten years. The share based expense for these awards was determined based on the market price of the Company's stock at the date of grant applied to the total number of shares that were anticipated to vest. During the year ended December 31, 2010, approximately 48,000 shares of restricted stock were awarded to senior management and independent directors. No restricted shares were issued during 2011. As of December 31, 2011, the Company had unearned compensation of $291,000 associated with all of the Company's restricted stock awards; the expense is to be recognized over the next three years. The unvested portion of restricted stock awards at December 31, 2011 and 2010 was approximately 61,000 and 97,000 shares, respectively.