Share-Based Compensation Plan

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company sponsors one share-based compensation plan, the 2006 Equity Compensation Plan, which provides for the granting of stock options, stock appreciation rights, stock awards, performance share awards, incentive awards, and stock units. The 2006 Equity Compensation Plan was approved by the Company’s shareholders at the Annual Meeting held on April 26, 2006, and has succeeded the Company’s 1997 Stock Incentive Plan. Under the plan, the Company may grant share-based compensation to its directors, officers, employees, and other persons the Company determines have contributed to the profits or growth of the Company. During 2013, the Company's Board of Directors and shareholders approved an amendment to this Plan to increase the number of shares reserved for issuance from 255,000 shares to 430,000 shares, an increase of 175,000 shares.

For the three months ended March 31, 2014, the Company recorded $96,000 in share-based compensation expense related to restricted stock and option grants.

The following table summarizes restricted stock service awards awarded under the 2006 Equity Compensation Plan:



	March 31, 2014
(Dollars in thousands)	Shares		Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested at December 31, 2013	119,250		$	16.39
Granted	133		18.31
Vested	—		—
Forfeited	(9,500	)	15.91
Non-vested at March 31, 2014	109,883		$	16.14	$	1,935

The weighted-average remaining contractual term for non-vested service award grants at March 31, 2014, was 3.73 years. As of March 31, 2014, there was $1.3 million of total unrecognized compensation expense related to the non-vested service award grants under the 2006 Equity Compensation Plan.

The aggregate intrinsic value represents the amount by which the current market value of the underlying stock exceeds the exercise price. This amount changes based on changes in the market value of the Company’s common stock.

The following table summarizes options outstanding under the 2006 Equity Compensation Plan and remaining outstanding unexercised options under the 1997 Stock Incentive Plan.



	March 31, 2014
	Shares		Weighted-Average Exercise Price		Intrinsic Value
Outstanding at December 31, 2013	58,513		$	15.30
Granted	—		—
Exercised	(4,921	)	14.00
Forfeited	(3,000	)	39.40
Outstanding at March 31, 2014	50,592		$	14.00	$	—
Options exercisable at March 31, 2014	50,592		$	14.00	$	—

The total intrinsic value of options exercised was $22,000 at March 31, 2014.

As of March 31, 2014, options outstanding and exercisable are summarized as follows:



Range of Exercise Prices		Options Outstanding	Weighted-Average Remaining Contractual Life (years)	Options Exercisable
$	14.00	45,592	4.96	45,592
$	14.00	5,000	5.59	5,000
$	14.00	50,592	5.02	50,592

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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