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Share-Based Compensation
 9 Months Ended
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation
 
For the nine month periods ended September 30, 2012 and 2011, share-based compensation cost recognized was $83,000 and $149,000, respectively. For the quarter ended September 30, 2012 and 2011, shared-based compensation was $19,000 and $47,000, respectively. The recognized tax benefits for stock option compensation expense were $14,000 and $27,000, respectively, for the nine month periods ended September 30, 2012 and 2011.  For the quarter ended September 30, 2012 and 2011, recognized tax benefits were $3,000 and $9,000, respectively.
 
The Company bases the fair value of the options granted on the date of grant using a Black-Scholes Merton option pricing model that uses assumptions based on expected option life and the level of estimated forfeitures, expected stock volatility, risk free interest rate, and dividend yield.  The expected term and level of estimated forfeitures of the Company’s options are based on the Company’s own historical experience.  Stock volatility is based on the historical volatility of the Company’s stock.  The risk-free rate is based on the U. S. Treasury yield curve for the periods within the contractual life of the options in effect at the time of grant.  The compensation cost for options granted is based on the weighted average grant date fair value per share.
 
During the quarter ended September 30, 2012, options to purchase 91,150 shares of the Company’s common stock were issued from the Central Valley Community Bancorp 2005 Omnibus Incentive Plan (2005 Plan) at an exercise price of $8.02. No options to purchase shares of the Company’s common stock were issued in the first nine months of 2011 from either of the Company’s stock based compensation plans. 

A summary of the combined activity of the Company’s Stock Based Compensation Plans for the nine month period ended September 30, 2012 follows:
 
 
 
Shares
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic Value (In thousands)
Options outstanding at January 1, 2012
 
511,019

 
$
8.56

 
 

 
 

Options granted
 
91,150

 
$
8.02

 
 
 
 
Options exercised
 
(65,450
)
 
$
5.52

 
 

 
 

Options forfeited
 
(29,640
)
 
$
10.12

 
 

 
 

Options outstanding at September 30, 2012
 
507,079

 
$
8.76

 
4.87

 
$
373

Options vested or expected to vest at September 30, 2012
 
487,751

 
$
8.84

 
4.56

 
$
350

Options exercisable at September 30, 2012
 
360,079

 
$
9.41

 
3.15

 
$
232



The weighted-average grant-date fair value of options granted in the nine month period ended September 30, 2012 was $3.41. No options to purchase shares of the Company’s common stock were issued in the first nine months of 2011 from either of the Company’s stock based compensation plans. 
 
The total intrinsic value of 65,450 options exercised in the nine months ended September 30, 2012 was $87,000.
 
Cash received from options exercised for the nine months ended September 30, 2012 and 2011 was $361,000 and $680,000, respectively.  The tax benefit realized for the tax deductions from options exercised totaled $25,000 and $117,000 for the nine months ended September 30, 2012 and 2011, respectively.
 
As of September 30, 2012, there was $405,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under both plans.  The cost is expected to be recognized over a weighted average period of 2.08 years.