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

18. STOCK COMPENSATION PLANS

The Company uses the modified perspective method for accounting for stock-based compensation and recognized $15,000 of pretax compensation expense for the year 2011, $18,000 in 2010 and $11,000 in 2009.

During 2011, the Company's Board of Directors adopted, and its shareholders approved, the AmeriServ Financial, Inc. 2011 Stock Incentive Plan (the Plan) authorizing the grant of options or restricted stock covering 800,000 shares of common stock. This Plan replaced the expired 2001 Stock Option Plan. Under the Plan, options or restricted stock can be granted (the Grant Date) to directors, officers, and employees that provide services to the Company and its affiliates, as selected by the compensation committee of the Board of Directors. The option price at which a stock option granted during 2011 may be exercised was not less than 100% of the fair market value per share of common stock on the Grant Date. The maximum term of any option granted under the Plan cannot exceed 10 years. Generally, options vest over a three year period and become exercisable in equal installments over the vesting period. At times, options with a one year vesting period may also be issued.

A summary of the status of the Company's Stock Incentive Plan at December 31, 2011, 2010, and 2009, and changes during the years then ended is presented in the table and narrative following:

 

     YEAR ENDED DECEMBER 31  
     2011      2010      2009  
     SHARES     WEIGHTED
AVERAGE
EXERCISE
PRICE		      SHARES     WEIGHTED
AVERAGE
EXERCISE
PRICE		      SHARES     WEIGHTED
AVERAGE
EXERCISE
PRICE		  

Outstanding at beginning of year

      257,287      $ 3.18         293,609      $ 4.23         232,009      $ 4.90   

Granted

      58,575        2.25         105,041        1.78         69,100        1.69   

Exercised

      (750 )      1.70         —        —         —        —   

Forfeited

      (1,500 )      1.70         (141,363 )      4.31         (7,500 )      1.77   
  

 

 

       

 

 

       

 

 

    

Outstanding at end of year

      313,612        3.02         257,287        3.18         293,609        4.23   
  

 

 

       

 

 

       

 

 

    

Exercisable at end of year

      179,874        3.81         118,571        4.79         245,469        4.69   

Weighted average fair value of options granted in current year

      $ 0.51         $ 0.39         $ 0.37   

 

A total of 179,874 of the 313,612 options outstanding at December 31, 2011, have exercise prices between $1.53 and $6.10, with a weighted average exercise price of $3.81 and a weighted average remaining contractual life of 4.78 years. All of these options are exercisable. The remaining 133,738 options that are not yet exercisable have exercise prices between $1.53 and $2.28, with a weighted average exercise price of $1.96 and a weighted average remaining contractual life of 8.61 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for grants in 2011, 2010, and 2009.

 

     YEAR ENDED DECEMBER 31
BLACK-SCHOLES ASSUMPTION RANGES    2011   2010   2009

Risk-free interest rate

    2.19-3.62%   3.21-3.83%   2.83-3.47%

Expected lives in years

    10   10   10

Expected volatility

    35.03-35.25%   34.60-35.74%   33.67-34.09%

Expected dividend rate

    0%   0%   0%