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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

NOTE 11. Stock-Based Compensation

The exercise price of stock options granted under this plan, both incentive and non-qualified, cannot be less than the fair market value of the common stock on the date that the option is granted. The maximum term for an option granted under this plan is ten years and options granted may be subject to a vesting schedule. All of the non-qualified stock options granted under the plan had a ten year term and were subject to a vesting period. The following table summarizes options outstanding at December 31, 2011, 2010, and 2009:

  2011 2010 2009
      Weighted       Weighted   Weighted
      Average   Aggregate   Average   Average
      Exercise   Intrinsic   Exercise   Exercise
  Shares   Price   Value Shares Price Shares Price
Outstanding, beginning of year 22,000 $ 21.59     22,000 $ 21.59 22,000 $ 21.59
Granted -   -     -   - -   -
Exercised -   -     -   - -   -
Forfeited -   -     -   - -   -
Outstanding, end of year 22,000 $ 21.59     22,000 $ 21.59 22,000 $ 21.59
 
Exercisable, end of year 22,000 $ 21.59 $ - 22,000 $ 21.59 22,000 $ 21.59
Weighted average fair value of                      
options granted during the year   $ -       $ -   $ -

 

The aggregate intrinsic value in the table is equal to the amount that would have been received by the option holders had all options been exercised on December 31, 2011. It is derived from the amount by which the current market value of the underlying stock exceeds the exercise price of the option. This amount fluctuates in relation to the market value of the Company's stock.

The following table summarizes options outstanding and exercisable at December 31, 2011:

 

    Options Outstanding Options Exercisable
      Weighted          
      Average   Weighted     Weighted
  Range of   Remaining   Average     Average
  Exercise Number Contractual   Exercise Number   Exercise
  Price Outstanding Life (in years)   Price Exercisable   Price
$ 21.63 11,000 1.75 $ 21.63 11,000 $ 21.63
  21.55 11,000 2.75   21.55 11,000   21.55
$ 21.55 - 21.63 22,000 2.25 $ 21.59 22,000 $ 21.59

 

Restricted Stock provides grantees with rights to shares of common stock upon completion of a service period or achievement of Company performance measures. During the restriction period, all shares are considered outstanding and dividends are paid to the grantee. Outside directors are periodically granted restricted shares which vest over a period of less than six months. During 2011, executive officers were granted restricted shares which vest over a three year service period and restricted shares which vest based on meeting performance measures over a three year period. The following table presents the activity for Restricted Stock for the years ended December 31, 2011, 2010 and 2009:

  2011 2010 2009
      Weighted     Weighted     Weighted
      Average     Average     Average
      Grant Date     Grant Date     Grant Date
  Shares   Fair Value Shares   Fair Value Shares   Fair Value
Nonvested, beginning of year 12,772   $ 16.89 13,335   $ 20.00 11,492   $ 26.16
Granted 12,300     16.76 12,900     16.14 11,700     16.06
Vested (9,291 )   17.55 (7,936 )   19.51 (7,509 )   21.12
Forfeited (2,081 )   18.38 (5,527 )   18.86 (2,348 )   26.94
Nonvested, end of year 13,700   $ 16.11 12,772   $ 16.89 13,335   $ 20.00

 

The Company recognizes compensation expense over the restricted period. Compensation expense was $166,000, $116,000, and $166,000 during 2011, 2010, and 2009, respectively. The total grant date fair value of Restricted Stock which vested was $163,000 and $155,000 for the years ended December 31, 2011 and 2010, respectively. Unrecognized compensation cost related to unvested Restricted Stock was $47,000 at December 31, 2011. This amount is expected to be recognized over a weighted average period of 1.1 years.