Stock-Based Compensation Plan

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation Plan [Abstract]

Stock-Based Compensation Plan

Note 2.                                Stock–Based Compensation Plan

As of June 30, 2011, the Company sponsored one stock-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 stock-based compensation to its directors, officers, employees and other persons the Company determines have contributed to the profits or growth of the Company.  The Company may grant awards of up to 255,000 shares of common stock under the 2006 Equity Compensation Plan.

The Company granted 54,500 shares of restricted stock to executive officers and certain other employees on May 1, 2011.  The terms of the grant awards provide for 100% cliff vesting on December 31, 2016 but vesting may be accelerated on a graduated basis if certain predefined performance targets are met during the service period.  As of June 30, 2011, no shares were vested under these awards.  Service-based stock awards are entitled to voting and dividend rights on all shares granted as of the grant date. Under the terms of these grant awards, unearned restricted stock grants are forfeited if the employee leaves the Company prior to vesting.

Additionally, 1,063 shares of service-based restricted stock were issued to the Chairman of the Board of Directors on May 1, 2011.  The shares will vest at 100% on May 1, 2012.

  The Company recognized $123,000 for stock-based compensation expenses for the six months ended June 30, 2011.

The following table summarizes stock options awarded under the 2006 Equity Compensation Plan and remaining unexercised options under the 1997 Stock Incentive Plan at the end of the reporting period.

	June 30, 2011
		Weighted
		Average			Aggregate
		Exercise			Intrinsic
	Shares	Price			Value
Outstanding at beginning of year	165,915	$	20.18
Granted	--		--
Exercised	--		--
Forfeited	5,744		14.00
Outstanding at end of period	160,171	$	20.48	$	--

As of the end of the reporting period, 130,086 options were vested and exercisable representing 100,000 shares issued under the original 1997 plan and 30,086 vested options under the 2006 Plan.  At June 30, 2011 the weighted average exercise price of these stock options was greater than the aggregate market price.  The weighted average remaining contractual term for options outstanding and exercisable at June 30, 2011 was 2.8 years.  As of June 30, 2011 there was $40,000 of total unrecognized compensation expense related to stock option awards under the 2006 Equity Compensation Plan.

The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan at the end of the reportable period.

	June 30, 2011
				Weighted
				Average				Aggregate
				Grant-Date				Intrinsic
	Shares			Fair Value				Value
Outstanding at beginning of year		38,580		$	15.13
Granted		55,563			15.06
Vested		(7,923	)		(13.92	)
Forfeited		--			--
Non-vested at end of period		86,220		$	14.79		$	1,326,000

The weighted average remaining contractual term for non-vested restricted stock at June 30, 2011 was 3.57 years.  As of June 30, 2011, there was $1,352,000 of total unrecognized compensation expense related to the non-vested restricted stock awards under the 2006 Equity Compensation Plan.