Stock Based Compensation

9 Months Ended

Sep. 30, 2011

Stock Based Compensation [Abstract]

STOCK BASED COMPENSATION

NOTE 6- STOCK BASED COMPENSATION

Restricted Stock Awards

     During 2011 the Company has made the following restricted stock award grants:

Date		Shares Granted		Plan	Fair Value		Vesting Period
	2/10/2011		27,750	2005 Employee Stock Plan	$	27.58	Ratably over 5 years from grant date
	2/17/2011		33,000	2005 Employee Stock Plan	$	27.43	Ratably over 5 years from grant date
	5/3/2011		3,000	2005 Employee Stock Plan	$	29.00	Ratably over 5 years from grant date
	5/24/2011		9,800	2010 Non-Employee Director Stock Plan	$	28.88	At the end of 5 years from grant date (1)

(1) These restricted stock grants issued out of the 2010 Non-Employee Director Stock Plan will vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. If a non-employee director is removed from the Board for cause, the Company has ninety (90) days within which to exercise a right to repurchase any unvested portion of any restricted stock award from the non-employee director for the aggregate price of one dollar ($1.00).

     The fair value of the restricted stock awards are based upon the average of the high and low price at which the Company’s common stock traded on the date of grant. The holders of these awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights.

Performance-Based Restricted Stock Awards

     On August 8, 2011, the Company granted 3,637 performance-based restricted stock awards to certain non-executive Bank employees. These performance-based restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $23.81 and vest on December 31, 2014. The number of shares vested as of December 31, 2014 may be adjusted in accordance with the attainment of certain performance measures outlined in the award agreement. These awards will be accounted for as equity awards due to the nature of these awards and the fact that these shares will not be settled in cash.

     The fair value of the performance-based restricted stock awards is based upon the average of the high and low price at which the Company’s common stock traded on the date of grant. The holders of these awards do not participate in the rewards of stock ownership of the Company until vested.

Stock Options

     During 2011 the Company made the following awards of non-qualified options to purchase shares of common stock:

Date		Shares Granted		Plan	Fair Value		Vesting Period (Ratably)	Expiration Date
	2/10/2011		40,000	2005 Employee Stock Plan	$	6.81	3 years from grant date		2/10/2021
	2/17/2011		54,000	2005 Employee Stock Plan	$	6.39	3 years from grant date		2/17/2021
	5/24/2011		7,000	2010 Non-Employee Director Stock Plan	$	6.72	3 year period ending 1/1/2013		5/24/2021

     The following table shows the assumptions used to determine the fair value of the granted options:

	February 10,			February 17,			May 24,
	2011			2011			2011
Volatility		32.38	%		32.11	%		32.95	%
Expected Life	5.5 Years			5 Years			5 Years
Dividend Yield		2.90	%		2.89	%		2.87	%
Risk Free Interest Rate		2.57	%		2.27	%		1.81	%