Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

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Stock Based Compensation
 9 Months Ended
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 9 - Stock Based Compensation

The Bancorp’s 2004 Stock Option Plan (the Plan), which is stockholder-approved, permits the grant of share options to its employees for up to 250,000 shares of common stock. Awards granted under the Plan may be in the form of incentive stock options, non-incentive stock options, or restricted stock. As required by the Compensation – Stock Compensation Topic, companies are required to record compensation cost for stock options provided to employees in return for employment service. The cost is measured at the fair value of the options when granted, and this cost is expensed over the employment service period, which is normally the vesting period of the options. Compensation cost will also be recorded for prior option grants that vest after the date of adoption. For the nine months ended September 30, 2012, stock based compensation expense of $12 thousand was recorded, compared to $27 thousand for the nine months ended September 30, 2011. It is anticipated that current outstanding vested and unvested options will result in additional compensation expense of approximately $4 thousand in 2012 and $12 thousand in 2013.

 

There were no shares of restricted stock granted during the first nine months of either 2012 or 2011.

 

A summary of option activity under the Bancorp’s incentive stock option plan for the nine months ended September 30, 2012 follows:

 

                Weighted-        
          Weighted-     Average        
          Average     Remaining     Aggregate  
          Exercise     Contractual     Intrinsic  
Options   Shares     Price     Term     Value  
Outstanding at January 1, 2012     40,500     $ 25.30                  
Granted     -       -                  
Exercised     -       -                  
Forfeited     -       -                  
Expired     (14,550 )   $ 22.15                  
Outstanding at September 30, 2012     25,950     $ 27.06       0.9       -  
Exercisable at September 30, 2012     24,950     $ 27.01       0.7       -