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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2014
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | NOTE 7 – STOCK-BASED COMPENSATION The Company has three stock-based compensation plans (the “Plans”), as described below. Total compensation cost that has been charged against income for those Plans totaled $69 and $218, respectively, for the three and nine months ended September 30, 2014 and $32 and $82, respectively, for the three and nine months ended September 30, 2013. The total income tax effect was not material for the three and nine months ended September 30, 2014 and 2013. The Plans, which are stockholder-approved, provide for stock option grants and restricted stock awards to directors, officers and employees. The 1999 Stock-Based Incentive Plan, which expired July 13, 2009, provided 38,778 shares of common stock for stock option grants and 15,511 shares of common stock for restricted stock awards. The 2003 Equity Compensation Plan (the “2003 Plan”), as amended and restated, provided an aggregate of 100,000 shares for stock option grants and restricted stock awards, of which up to 30,000 shares could be awarded in the form of restricted stock awards. The 2009 Equity Compensation Plan, which was approved by stockholders on May 21, 2009, replaced the 2003 Plan and provides 200,000 shares, plus any remaining shares available to grant or that are later forfeited or expire under the 2003 Plan, that may be issued as stock option grants, stock appreciation rights or restricted stock awards. On May 16, 2013, stockholders approved the First Amendment to the 2009 Equity Compensation Plan to increase the number of shares of common stock reserved for stock option grants and restricted stock awards thereunder to 1,500,000. Stock Options The Plans permit the grant of stock options to directors, officers and employees of the Holding Company and CFBank. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one to three years, and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change of control. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Employee and management options are tracked separately. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted during the three and nine months ended September 30, 2014. The fair value of the options granted during the three and nine months ended September 30, 2013 was determined using the following weighted average assumptions as of the grant dates as listed in the table below.
| Three months ended |  | Nine months ended
| September 30, 2013 |  | September 30, 2013
Risk-free interest rate | 2.00% |  | 1.71%
Expected term (years) | 7 |  | 7
Expected stock price volatility | 80.23% |  | 80.05%
Dividend yield | 0% |  | 0%
A summary of stock option activity in the Plans for the nine months ended September 30, 2014 follows:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Intrinsic Value
Outstanding at beginning of year | 639,686 |  | $ | 1.70 |  |  |  |  |
Granted | - |  |  | - |  |  |  |  |
Exercised | - |  |  | - |  |  |  |  |
Expired | (1,200) |  |  | 63.00 |  |  |  |  |
Cancelled or Forfeited | (16,490) |  |  | 2.36 |  |  |  |  |
Outstanding at end of period | 621,996 |  | $ | 1.56 |  | 8.7 |  | $ | -
Expected to vest | 514,168 |  | $ | 1.40 |  | 8.8 |  | $ | -
Exercisable at end of period | 107,828 |  | $ | 2.37 |  | 8.0 |  | $ | -
During the nine months ended September 30, 2014, there were 16,490 stock options canceled or forfeited. Previously recognized expense associated with nonvested forfeited shares is reversed. There were no shares granted or exercised during the three or nine months ended September 30, 2014. As of September 30, 2014, there was $175 of total unrecognized compensation cost related to nonvested stock options granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.4 years. Substantially all of the 514,168 nonvested stock options at September 30, 2014 are expected to vest. Restricted Stock Awards The Plans permit the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the awards based on the fair value of the stock as of the grant date. The fair value of the stock was determined using the closing share price on the date of grant and shares generally have vesting periods of one to three years. There were 953,042 shares available for stock option grants and restricted stock to be issued under the Plans at September 30, 2014. There were no shares of restricted stock issued during the three or nine months ended September 30, 2014 and 2013. As of September 30, 2014, there were no nonvested restricted share awards. There were no shares forfeited during the three or nine months ended September 30, 2014. During the three and nine months ended September, 2013, 1,000 shares were forfeited, which resulted in the reversal of previously recognized expense associated with the nonvested shares. As of September 30, 2014, the total unrecognized compensation cost related to nonvested restricted shares granted under the Plans was immaterial. There were no shares vested during the three and nine months ended September 30, 2014 and 2013.

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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 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 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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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