Equity Incentive Compensation

12 Months Ended

Dec. 31, 2011

Equity Incentive Compensation [Abstract]

Equity Incentive Compensation

NOTE 16: EQUITY INCENTIVE COMPENSATION

The Company has an Equity Incentive Plan (the "Plan") which allows the Company to issue equity incentive compensation awards to its employees and directors in the forms of stock options, restricted shares or deferred share units.

Under the fixed option provisions of the Plan, the Company may grant options for shares of common stock that vest two years from the date of grant to its employees. At December 31, 2011, the Company had 141,796 shares available to be granted (options granted prior to 1998 were subject to an earlier plan with similar terms). The exercise price of each option is intended to equal the fair value of the Company's stock on the date of grant, and maximum terms are 10 years.

During 2011, 2010 and 2009, the Company granted no stock options, but did grant 40,666, 29,640 and 60,350 shares of restricted common stock, respectively. Recipients of the restricted stock grant who are employees fully vest in the stock after three years from the date of the grant. Recipients of the restricted stock grant who are directors vested immediately in 2011, 2010 and 2009. The non-vested shares were 40,529, 49,308, and 61,750 as of December 31, 2011, 2010 and 2009, respectively. The cost basis of the restricted shares granted which is equal to the fair value of the Company's stock on the date of grant, will be amortized to compensation expense ratably over the applicable vesting period. Expenses associated with restricted stock grants were $300,000, $608,000, and 306,000 for 2011, 2010 and 2009, respectively. The amount of unrecognized compensation costs was $127,000, $264,000, and $650,000 as of December 31, 2011, 2010, and 2009, respectively. During 2011, 2010 and 2009, 7,437, 7,454 and 5,300 shares of restricted stock were forfeited, respectively.

A summary of the status of option shares under the plan at December 31, 2011, 2010 and 2009, and changes during the years then ended, is presented below:

		2011				2010				2009
				Weighted				Weighted				Weighted
				Average				Average				Average
				Exercise				Exercise				Exercise
	Shares			Price	Shares			Price	Shares			Price
Outstanding, beginning of year	24,375		$	22.07	33,875		$	20.51	51,225		$	20.38
Exercised	–			–	–			–	–			–
Forfeited	13,800			19.82	9,500			16.50	17,350			20.12
Outstanding, end of year	10,575		$	25.00	24,375		$	22.07	33,875		$	20.51
Intrinsic value of shares exercised	$ –				$ –				$ –
Options exercisable, end of year	10,575		$	25.00	24,375		$	22.07	33,875		$	20.51

The weighted-average remaining contractual life of option shares at December 31, 2011 was 0.95 years and the exercise price was $25.00. Information about options outstanding and exercisable as of December 31, 2011 is set forth in the following table.

		Options Outstanding and Exercisable
	Exercise	Number Outstanding and	Weighted Average Remaining		Weighted Average
	Price	Exercisable at 12/31/11	Contractual Life		Exercise Price
$	25.00	10,575	1 year	$	25.00