STOCK COMPENSATION EXPENSE (Tables)

9 Months Ended

Sep. 30, 2013

STOCK COMPENSATION EXPENSE [Abstract]

Assumption Used in the Black-Scholes Option-pricing Model

The fair value of the Company's employee stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. 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

Summary of Stock Option Activity

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

	- - - - - - 2013 - - - - - -					- - - - - - 2012 - - - - - -
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of year		392,366		$	9.24		350,949		$	9.69
Grants		52,900			11.39		105,700			7.47
Exercises		(60,043	)		7.63		(10,200	)		6.93
Forfeitures or expired		(12,401	)		7.90		(25,733	)		8.07
Outstanding at September 30,		372,822		$	9.76		420,716		$	9.30
Exercisable at September 30,		231,272					248,996
Weighted average remaining life of options outstanding		6.2					6.5
Weighted average fair value of options granted during the year	$	2.85				$	2.34

Stock Option Activity by Range of Exercise Prices

Additional information regarding stock options outstanding and exercisable at September 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		215,789	$	7.47	$	877		125,339		6.2	$	7.59	$	495
$10.01 to $12.50		72,933		11.46		8		21,833		1.3		11.62		-
$12.51 to $15.00		60,600		13.46		-		60,600		3.9		13.46		-
$15.01 to $17.50		23,500		16.00		-		23,500		2.4		16.00		-
Outstanding - Sept 30, 2013		372,822		9.76	$	885		231,272		4.8		10.36	$	495