Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13. STOCK-BASED COMPENSATION

The Company has equity incentive plans which provide for the grant of nonqualified and incentive stock options and the award of restricted stock for the benefit of officers, other key

employees and directors.  As of December 31, 2011, 265,625 shares of the Company's common stock were reserved for future equity awards under those plans.  The option price is not to

be less than the fair market value of the common stock on the date the option is granted, and the stock options are exercisable at any time within the maximum term of 10 years and one

day from the grant date, limited by general vesting terms up to a maximum amount of $100,000 per year on incentive stock options.  The options are nontransferable and are forfeited

upon termination of employment, subject to certain exceptions.  The Company issues new common shares to satisfy exercises of stock options.

The pre-tax compensation cost for the stock options charged against income was $4,000, $25,000 and $75,000 in the income statements for the years ended December 31, 2011, 2010, and 2009, respectively.  The related income tax benefit recognized in the same years was $2,000, $7,000, and $28,000 respectively.  No options were granted during the years ended December 31, 2011, 2010 and 2009.

The following is the stock option activity for the years ended December 31, 2011 and 2010 and the stock options outstanding at the end of the respective periods:

Options	Shares			Weighted  Average  Exercise  Price		Weighted  Average Life (in years)		Aggregate  Intrinsic  Value
Outstanding December 31, 2009		300,965
Forfeited		(20,543	)
Outstanding December 31, 2010		280,422		$	23.26
Forfeited		(46,474	)		18.37
Outstanding December 31, 2011		233,948		$	24.23		4.1	$	0
Exercisable at December 31, 2011		233,948		$	24.23		4.1	$	0

Options outstanding at December 31, 2011 are all vested.  As of December 31, 2011 and 2010, there was approximately zero and $4,000 of unrecognized compensation cost related to the unvested shares, respectively.   No options were exercised in 2011 and 2010.

Restricted stock awards generally have transfer restrictions which lapse periodically over a three year period.  Accordingly, the compensation expense related to the restricted stock will be amortized over the vesting period.  The pre-tax compensation cost for the restricted stock charged against income was $501,000 and $146,000 in the income statements for the year ended December 31, 2011 and 2010, respectively.  The related income tax benefit recognized in the same year was $198,000 and $40,000, respectively.

The following is the restricted stock activity for the year ended December 31, 2011 and 2010 and the nonvested restricted stock outstanding at the end of the respective periods.

Restricted Stock	Shares			Weighted Average Grant-Date Fair Value
Nonvested December 31, 2009		0
Granted		27,000
Nonvested December 31, 2010		27,000		$	12.15
Granted		39,300			15.15
Vested		(13,800	)		13.83
Forfeited		(2,000	)		12.15
Nonvested December 31, 2011		50,500		$	14.03

As of December 31, 2011, there was approximately $269,000 of unrecognized compensation cost related to the nonvested restricted stock.  The December 31, 2011 cost is expected to be recognized over the remaining vesting period, which approximates 2 years.