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Share-Based Compensation Plans
 3 Months Ended
Mar. 31, 2012
Share-Based Compensation Plans [Abstract]  
Share-Based Compensation Plans

(6.) SHARE-BASED COMPENSATION PLANS

The Company maintains certain stock-based compensation plans that were approved by the Company's shareholders and are administered by the Board, or the Management Development and Compensation Committee of the Board. The share-based compensation plans were established to allow for the granting of compensation awards to attract, motivate and retain employees, executive officers and non-employee directors who contribute to the success and profitability of the Company and to give such persons a proprietary interest in the Company, thereby enhancing their personal interest in the Company's success.

The Company awarded grants of 48,741 restricted shares to certain members of management during the three months ended March 31, 2012. The weighted average market price of the restricted shares on the date of grant was $17.42. Either a service requirement or both service and performance requirements must be satisfied before the participant becomes vested in the shares. Where applicable, the performance period for the awards is the Company's fiscal year ending December 31, 2012.

The following is a summary of restricted stock award activity for the three months ended March 31, 2012:

         
        Weighted
        Average
        Market
  Number of     Price at
  Shares     Grant Date
Outstanding at beginning of year 166,654   $ 14.34
Granted 48,741     17.42
Vested (82,256 )   12.13
Forfeited (9,748 )   16.19
Outstanding at end of period 123,391   $ 16.88

 

The Company amortizes the expense related to restricted stock awards over the vesting period. Share-based compensation expense is included in the consolidated statements of income under salaries and employee benefits for awards granted to management and in other noninterest expense for awards granted to directors. The share-based compensation expense included in the consolidated statements of income is as follows (in thousands):

         
  Three months ended
    March 31,
  2012 2011
Stock options:        
Management Stock Incentive Plan $ 4 $ 14
Director Stock Incentive Plan   -   10
Total stock option expense   4   24
Restricted stock awards:        
Management Stock Incentive Plan   123   192
Director Stock Incentive Plan   15   15
Total restricted stock award expense   138   207
Total share-based compensation $ 142 $ 231