Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

 v2.3.0.11
Stock Based Compensation
 6 Months Ended
Jun. 30, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note 8 - 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 six months ended June 30, 2011, stock based compensation expense of $18 thousand was recorded, compared to $19 thousand for the six months ended June 30, 2010. It is anticipated that current outstanding vested and unvested options will result in additional compensation expense of approximately $15 thousand in 2010 and $16 thousand in 2011.

There were no shares of restricted stock granted during the first six months of 2011, compared to 300 shares granted during the first six months of 2010.
A summary of option activity under the Bancorp’s incentive stock option plan for the six months ended June 30, 2011 follows:
               
Weighted-
       
         
Weighted-
   
Average
       
       
Average
   
Remaining
   
Aggregate
 
         
Exercise
   
Contractual
   
Intrinsic
 
Options
 
Shares
   
Price
   
Term
   
Value
 
Outstanding at January 1, 2011
    49,247     $ 24.27                  
Granted
    -       -                  
Exercised
    -       -                  
Forfeited
    -       -                  
Expired
    (8,747 )   $ 19.50                  
Outstanding at June 30, 2011
    40,500     $ 25.30       1.6       -  
Exercisable at June 30, 2011
    39,500     $ 25.22       1.5       -