STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation

STOCK-BASED COMPENSATION

NOTE 12 – STOCK-BASED COMPENSATION

PSB granted restricted stock to certain employees having an initial market value of $210 during the three months ended March 31, 2013 compared to $200 granted during the three months ended March 31, 2012. 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 as significantly all restricted shares are expected to vest to employees. Unvested shares are subject to forfeiture upon employee termination. During the three months ended March 31, compensation expense recorded from amortization of restricted shares expected to vest to employees was $36 and $22 during 2013 and 2012, respectively.

The following tables summarize information regarding restricted stock outstanding at March 31, 2013 and 2012 including activity during the three months then ended.

				Weighted
				Average
	Shares			Grant Price
January 1, 2012		25,572		$	17.79
Restricted stock granted		8,895			22.48
Restricted stock legally vested		(4,058	)		(16.08	)
March 31, 2012		30,409		$	19.39
January 1, 2013		30,409		$	19.39
Restricted stock granted		8,076			26.00
Restricted stock legally vested		(5,883	)		(17.85	)
March 31, 2013		32,602		$	21.30

Scheduled compensation expense per calendar year assuming all restricted shares eventually vest to employees would be as follows:

2013	$	146
2014		146
2015		137
2016		122
2017		82
Thereafter		42
Totals	$	675