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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7 - Stock-Based Compensation As of March 31, 2013, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which it may issue shares of common stock or grant other equity-based awards. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date over a three- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. Stock-based compensation expense is recognized ratably over the requisite service period for all awards, is based on the grant-date fair value and reflects forfeitures as they occur. The following tables provide information on stock-based compensation expense for the first three months of 2013 and 2012.
|  | For the Three Months Ended |
|  | March 31, |
(Dollars in thousands) |  | 2013 |  |  | 2012 |
Stock-based compensation expense |  | $ | 22 |  |  | $ | 97 |
Excess tax expense related to stock-based compensation |  |  | 26 |  |  |  | 83 |
|  | March 31, |
(Dollars in thousands) |  | 2013 |  |  | 2012 |
Unrecognized stock-based compensation expense |  | $ | 148 |  |  | $ | 257 |
Weighted average period unrecognized expense is expected to be recognized |  |  | 2.1 years |  |  |  | 2.3 years |
The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the three months ended March 31, 2013.
|  | Number |  |  | Weighted Average Grant |
|  | of Shares |  |  | Date Fair Value |
Nonvested at beginning of period |  |  | 6,548 |  |  | $ | 14.89 |
Granted |  |  | 3,930 |  |  |  | 6.81 |
Vested |  |  | (6,548 | ) |  |  | 14.89 |
Cancelled |  |  | - |  |  |  | - |
Nonvested at end of period |  |  | 3,930 |  |  | $ | 6.81 |
The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the three months ended March 31, 2013.
|  |  |  |  | Weighted |  |  | Weighted Average |
|  | Number |  |  | Average |  |  | Grant Date |
|  | of Shares |  |  | Exercise Price |  |  | Fair Value |
Outstanding at beginning of period |  |  | 54,216 |  |  | $ | 6.64 |  |  | $ | 3.44 |
Granted |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |
Expired/Cancelled |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at end of period |  |  | 54,216 |  |  | $ | 6.64 |  |  | $ | 3.44 |
Exercisable at end of period |  |  | - |  |  | $ | - |  |  | $ | - |
The Company estimates the fair value of stock options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected contract life (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options outstanding at March 31, 2013.
Dividend yield | 0.60%
Expected volatility | 58.65%
Risk-free interest rate | 1.69%
Expected contract life (in years) | 5.83
At the end of the first quarter of 2013, the aggregate intrinsic value of the options outstanding under the 2006 Equity Plan was $8 thousand based on the $6.79 market value per share of Shore Bancshares, Inc.’s common stock at March 31, 2013. Since there were no options exercised during the first three months of 2013 or 2012, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At March 31, 2013, the weighted average remaining contract life of options outstanding was 9.0 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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