Stock Based Compensation

3 Months Ended

Mar. 31, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

12.        Stock Based Compensation

Board of Director's Stock Compensation

Members of the Board of Directors receive common shares of the Corporation equal in value to the amount of fees individually earned during the previous year for service as a director.  The common shares are distributed to the Corporation's individual board members from treasury shares of the Corporation on or about January 15 following the calendar year of service.

Additionally, the President and CEO of the Corporation, who does not receive cash compensation as a member of the Board of Directors, is awarded common shares equal in value to the average of those awarded to board members not employed by the Corporation who have served for twelve (12) months during the prior year.

During January 2012, 10,238 shares were re-issued from treasury to fund the stock component of directors' compensation.  An expense of $54 thousand related to this compensation was recognized during the first quarter of 2012.

Restricted Stock Plan

Pursuant to the Corporation's Restricted Stock Plan (the "Plan") the Corporation may make discretionary grants of restricted stock to officers other than the Corporation's Chief Executive Officer.  Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date.  The maximum number of shares as to which stock awards may be granted under the Plan is 10,000 per year, with these shares vesting over a 5 year period.

A summary of restricted stock activity from December 31, 2011 to March 31, 2012 is presented below:

	Shares		Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2011		12,458		22.33
Granted		1,079		23.18
Vested		-		-
Forfeited or Cancelled		-		-
Nonvested at March 31, 2012		13,537		22.40

As of March 31, 2012, there was $283,012 of total unrecognized compensation cost related to nonvested shares granted under the Plan.  The cost is expected to be recognized over a weighted-average period of 4.37 years.