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Share-Based Compensation
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
SHARED-BASED COMPENSATION
 
On December 31, 2012, the Company had two share-based compensation plans, which are described below. The Plans do not provide for the settlement of awards in cash and new shares are issued upon option exercise or restricted share grants. 
On November 15, 2000, the Company adopted, and subsequently amended on December 20, 2000, the Central Valley Community Bancorp 2000 Stock Option Plan (2000 Plan) for which 317,799 shares remain reserved for issuance for options already granted to employees and directors under incentive and nonstatutory agreements. The plan expired on November 15, 2010. Outstanding options under this plan are exercisable until their expiration, however, no new options will be granted under this plan. The plan required that the option price may not be less than the fair market value of the stock at the date the option was granted, and that the option price must be paid in full at the time it is exercised. The options under the plan expire on dates determined by the Board of Directors, but not later than 10 years from the date of grant. The vesting period was determined by the Board of Directors and was generally over 5 years.
In May 2005, the Company adopted the Central Valley Community Bancorp 2005 Omnibus Incentive Plan (2005 Plan). The plan provides for awards in the form of incentive stock options, non-statutory stock options, stock appreciation rights, and restricted stock. The plan also allows for performance awards that may be in the form of cash or shares of the Company, including restricted stock. The maximum number of shares that can be issued with respect to all awards under the plan is 476,000. Currently under the 2005 Plan, there are 181,490 shares reserved for issuance for options already granted to employees and 292,960 remain reserved for future grants as of December 31, 2012. The 2005 plan requires that the exercise price may not be less than the fair market value of the stock at the date the option is granted, and that the option price must be paid in full at the time it is exercised. The options and awards under the plan expire on dates determined by the Board of Directors, but not later than 10 years from the date of grant. The vesting period for the options and option related stock appreciation rights is determined by the Board of Directors and is generally over five years.
In 2012, options to purchase 92,150 shares of common stock were granted from the 2005 Plan at exercise prices between $8.02 and $8.75. No options to purchase shares of the Company’s common stock were granted during the year ending December 31, 2011 from any of the Company’s stock based compensation plans. In 2010, options to purchase 15,200 shares of the Company’s common stock were granted from the 2000 Plan at an exercise price of $5.76 and options to purchase 67,800 shares of common stock were granted from the 2005 Plan at exercise prices between $5.30 and $5.76. All options were granted with an exercise price equal to the market value on the grant date.
The Company bases the fair value of the options previously granted on the date of grant using a Black-Scholes-Merton option pricing model that uses assumptions based on expected option life, the level of estimated forfeitures, dividend yields, expected stock volatility and the risk-free interest rate.  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 and the expected term of the options.  Historical data is used to determine the expected term of its stock options and dividend yields. In addition to these assumptions, management makes estates regarding pre-vesting forfeitures that will impact total compensation expense recognized under the plans.
The fair value of each option is estimated on the date of grant using the following assumptions:
 
2012
Dividend yield
0.00%
Expected volatility
42%
Risk-free interest rate
0.71%
Expected option term
6.5 years


For the years ended December 31, 2012, 2011, and 2010, the compensation cost recognized for share based compensation was $108,000, $196,000, and $239,000, respectively. The recognized tax benefit for share based compensation expense was $16,000, $36,000, and $42,000 for 2012, 2011, and 2010, respectively.
A summary of the combined activity of the Plans for the year ended December 31, 2012 follows:
(Dollars in thousands, except per share amounts)
 
Shares
 
Weighted 
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic Value
 
 
 
 
 
 
 
 
 
Options outstanding at January 1, 2012
 
511,019

 
 

 
 
 
 

Options granted
 
92,150

 
$
8.03

 
 
 
 
Options exercised
 
(69,030
)
 
$
5.59

 
 
 
 

Options forfeited
 
(34,850
)
 
$
9.91

 
 
 
 

Options outstanding at December 31, 2012
 
499,289

 
$
8.78

 
4.61
 
$
284

Options vested or expected to vest at December 31, 2012
 
491,705

 
$
8.80

 
4.55
 
$
186

Options exercisable at December 31, 2012
 
358,279

 
$
9.40

 
2.91
 
$
181

 
Information related to the stock option plan during each year follows:
(In thousands, except per share amounts)
 
2012
 
2011
 
2010
Weighted-average per share grant-date fair value of options granted
 
$
3.40

 
$
—

 
$
2.58

Intrinsic value of options exercised
 
$
93

 
$
417

 
$
349

Cash received from options exercised
 
$
385

 
$
680

 
$
550

Excess tax benefit realized for option exercises
 
$
26

 
$
116

 
$
28



As of December 31, 2012, there was $374,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all Plans. The cost is expected to be recognized over a weighted average period of 1.98 years. The total fair value of options vested was $140,000 and $123,000 for the years ended December 31,2012 and 2011, respectively.