STOCK COMPENSATION

12 Months Ended

Dec. 31, 2013

STOCK COMPENSATION [Abstract]

STOCK COMPENSATION

(12)STOCK 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 Chief Executive Officer 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 12 months during the prior year.

During January 2014 and 2013, 8,385 and 7,969 shares, respectively, were re-issued from treasury to fund the stock component of directors' compensation.  An expense of $272,729, $216,946 and $232,948 related to this compensation was recognized during the years 2013, 2012 and 2011, respectively.  This expense is accrued as shares are earned.

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.

A summary of restricted stock activity as of December 31, 2013, and changes during the year ended is presented below:

	Shares			Weighted–Average Grant Date Fair Value
Nonvested at December 31, 2012		20,009		$	23.84
Granted		8,087			32.18
Vested		(5,660	)		23.22
Forfeited or Cancelled		(1,797	)		25.04
Nonvested at December 31, 2013		20,639		$	27.17

As of December 31, 2013, there was $548,916 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 4.12 years.  The total fair value of shares vested during the years ended December 31, 2013 and 2012 were $180,576 and $87,314, respectively.