STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation

STOCK-BASED COMPENSATION

NOTE 11 – STOCK-BASED COMPENSATION

PSB granted restricted stock to certain employees having an initial market value of $200 during the three months ended March 31, 2014 compared to $210 granted during the three months ended March 31, 2013. 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 $41 and $36 during 2014 and 2013, respectively.

The following tables summarize information regarding restricted stock outstanding at March 31, 2014 and 2013 including activity during the three months then ended.

				Weighted
				Average
	Shares			Grant Price
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
January 1, 2014		32,602		$	21.30
Restricted stock granted		6,400			31.25
Restricted stock legally vested		(7,640	)		(18.91	)
March 31, 2014		31,362		$	23.92

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

2014	$	166
2015		157
2016		162
2017		122
2018		82
Thereafter		40
Totals	$	729