STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2014

STOCK-BASED COMPENSATION [Abstract]

Estimated on the date of grant using the Black Scholes option pricing model with the following weighted average assumptions

The fair value of each option grant during the three months ended March 31, 2014 and 2013 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	For the three months ended March 31,
Weighted average assumptions	2014			2013
Dividend yield		1.61	%		0.83	%
Expected volatility		15.85	%		17.24	%
Risk-free interest rate		0.56	%		0.67	%
Fair value of options granted during the period	$	3.90		$	3.13
Expected lives in years		5			5

Option Activity

Option activity under the Company’s stock option plan for the quarter ended March 31, 2014 was as follows:

	At March 31, 2014
	Number of shares		Weighted average exercise price per share		Weighted average remaining contractual term (in years)		Aggregate intrinsic value ($000)
Outstanding at January 1, 2014		254,144	$	23.71		2.81	$	1,132
Options granted		71,500		30.03		5.00		—
Options exercised		—		—		—		—
Options forfeited		—		—		—		—
Options expired		—		—		—		—
Outstanding At March 31, 2014		325,644	$	25.10		3.06		1,562
Options exercisable At March 31, 2014		149,894	$	23.26		2.37		988

Summary of Stock-based Compensation Expense

The following tables provide information regarding the Company’s stock-based compensation expense:

	For the three months ended March 31,
	2014		2013
	(in thousands)
Stock-based compensation expense
Director fees	$	28	$	34
Stock option expense		89		59
Employee Stock Ownership Plan ("ESOP") expense		81		73
Total stock-based compensation expense	$	198	$	166