STOCK COMPENSATION EXPENSE (Tables)

6 Months Ended

Jun. 30, 2013

The assumptions used in the Black-Scholes option-pricing model are as follows:

	2013			2012			2011
Risk-free interest rate		1.96	%		2.31	%		3.58	%
Expected option life (yrs)		10.00			10.00			10.00
Expected stock price volatility		35.24	%		34.93	%		30.01	%
Dividend yield		3.86	%		2.68	%		4.03	%
Weighted average fair value of options granted during the year	$	2.85		$	2.34		$	1.63

A summary of the Company’s stock option activity and related information is presented below for the six months ended June 30:

	- - - - - - 2013 - - - - - -					- - - - - - 2012 - - - - - -
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of year		392,366		$	9.24		350,949		$	10.77
Grants		52,900			11.39		105,700			7.47
Exercises		(48,617	)		7.65		-			-
Forfeitures or expired		(12,201	)		8.03		(4,332	)		7.70
Outstanding at June 30,		384,448		$	9.70		452,317		$	9.19

Exercisable at June 30,		242,898					268,364
Weighted average remaining life of options outstanding		6.5					7.0
Weighted average fair value of options granted during the year	$	2.85				$	2.34

Additional information regarding stock options outstanding and exercisable at June 30, 2013, is provided in the following table:

	- - - - - - - - Outstanding - - - - - - - -						- - - - - - - - Currently Exercisable - - - - - - - -
Range of Exercise Prices	Number		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value

$6.50 to $10.00		227,415	$	7.48	$	1,038		136,965		6.6	$	7.59	$	610
$10.01 to $12.50		72,933		11.46		42		21,833		1.6		11.62		9
$12.51 to $15.00		60,600		13.46		-		60,600		4.2		13.46		-
$15.01 to $17.50		23,500		16.00		-		23,500		2.6		16.00		-
Outstanding - Jun 30, 2013		384,448		9.70	$	1,080		242,898		5.2		10.23	$	619