Stock-Based Compensation

Certain officers and directors of the Company participate in an incentive and non-qualified stock option plan. Options are granted at exercise prices not less than the fair value of the Company’s common stock on the date of the grant. The following is a summary of the activity under the Company’s stock option plans for the periods presented:



	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
	Shares		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
	Shares		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
Balance, Beginning of Period	68,400		$22.63	68,400		$22.63
Options Granted	—		—	—		—
Options Exercised	—		—	—		—
Options Forfeited	(3,400	)	24.06	(3,400	)	24.06
Balance, End Of Period	65,000		$22.55	65,000		$22.55

Options Exercisable	45,400

Options Available For Grant	50,000



	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
	Shares		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
	Shares		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
Balance, Beginning of Period	72,900		$22.62	74,900		$22.61
Options Granted	—		—	—		—
Options Exercised	—		—	—		—
Options Forfeited	(4,500	)	22.58	(6,500	)	22.46
Balance, End Of Period	68,400		$22.63	68,400		$22.63

Options Exercisable	43,400

Options Available For Grant	50,000

5. Stock-Based Compensation, Continued

At September 30, 2013, the Company had the following options outstanding:




Grant Date	Outstanding Options	Option Price	Expiration Date
12/01/03	3,000	$23.65	11/30/13

01/01/04	4,000	$24.22	12/31/13

03/08/04	7,000	$21.43	03/08/14

06/07/04	2,000	$24.00	06/07/14

01/01/05	18,000	$20.55	12/31/14

01/01/06	4,000	$23.91	01/01/16

08/24/06	3,500	$23.03	08/24/16

05/24/07	2,000	$24.34	05/24/17

07/09/07	1,000	$24.61	07/09/17

10/01/07	2,000	$24.28	10/01/17

01/01/08	14,000	$23.49	01/01/18

05/19/08	2,500	$22.91	05/19/18

07/01/08	2,000	$22.91	07/01/18

None of the options outstanding at September 30, 2013 or 2012 had an exercise price below the average market price during the three or nine month periods ended September 30, 2013 or 2012. Therefore these options were not deemed to be dilutive to earnings per share in those periods.