Stock based compensation

12 Months Ended

Dec. 31, 2012

Stock Based Compensation

Stock based compensation

NOTE 19 Stock Based Compensation

Under the terms of an incentive stock option plan adopted during 2001, shares of unissued common stock were reserved for options to officers and key employees at prices not less than the fair market value of the shares at the date of the grant. No additional shares of common stock remain reserved for future grants under the option plan approved by the shareholders, and the last outstanding option shares were exercised during 2012. No stock option plan expense was recorded in the three years ended December 31, 2012. The following table summarizes information regarding stock options outstanding at December 31, 2012, and activity during the three years ended December 31, 2012, 2011, and 2010.

				Weighted
				Average
	Shares			Price
January 1, 2010		4,495		$	15.20
Options granted		0			0.00
Options exercised		0			0.00
Option forfeited		(668	)		15.09
December 31, 2010		3,827			15.23
Options granted		0			0.00
Options exercised		(2,952	)		15.09
Option forfeited		(287	)		15.08
December 31, 2011		588			16.03
Options granted		0			0.00
Options exercised		(588	)		16.03
Option forfeited		0			0.00
December 31, 2012		0		$	0.00

PSB granted shares of restricted stock to certain employees having a market value of $200, $200, and $75 during 2012, 2011, and 2010, respectively. The restricted shares vest to employees based on continued PSB service over a six-year period and are recognized as compensation expense over the vesting period. Cash dividends are paid on unvested shares at the same time and amount as paid to PSB common shareholders. Cash dividends paid on unvested restricted stock shares are charged to retained earnings since significantly all restricted shares are expected to vest to employees. As of December 31, 2012, 30,409 shares of restricted stock remained unvested. Unvested shares are subject to forfeiture upon employee termination.

The following table summarizes information regarding unvested restricted stock and shares outstanding during the three years ended December 31, 2012, 2011, and 2010.

	Unvested			Weighted Average
	Shares			Grant Value
January 1, 2010		15,045		$	16.61
Restricted shares granted		5,232			14.33
Restricted shares vested		(825	)		(24.31	)
December 31, 2010		19,452			15.68
Restricted shares granted		9,130			21.90
Restricted shares vested		(3,010	)		(16.62	)
December 31, 2011		25,572			17.79
Restricted shares granted		8,895			22.48
Restricted shares vested		(4,058	)		(16.08	)
December 31, 2012		30,409		$	19.39

During 2012, total compensation expense of $105 (before tax benefits of $41) was recorded from amortization of restricted shares expected to vest. During 2011, total compensation expense of $78 (before tax benefits of $31) was recorded from amortization of restricted shares expected to vest. During 2010, total compensation expense of $43 (before tax benefits of $17) was recorded from amortization of restricted shares expected to vest. Future projected compensation expense (before tax benefits) assuming all restricted shares eventually vest to employees would be as follows:

2013	$	125
2014		125
2015		95
2016		80
2017		40
Total	$	465