Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

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Stock Based Compensation
 3 Months Ended
Mar. 31, 2013
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 three months ended March 31, 2013, stock based compensation expense of $6 thousand was recorded, compared to $4 thousand for the three months ended March 31, 2012. It is anticipated that current outstanding vested and unvested options will result in additional compensation expense of approximately $21 thousand in 2013 and $21 thousand in 2014.

 

There were no incentive stock options granted during the first three months of 2013 or 2012. A summary of option activity under the Bancorp’s incentive stock option plan for the three months ended March 31, 2013 follows:

 

                Weighted-        
          Weighted-     Average        
          Average     Remaining     Aggregate  
          Exercise     Contractual     Intrinsic  
Options   Shares     Price     Term     Value  
Outstanding at January 1, 2013     25,950     $ 27.06                  
Granted     -       -                  
Exercised     -       -                  
Forfeited     (2,175 )     29.83                  
Expired     (15,725 )   $ 25.25                  
Outstanding at March 31, 2013     8,050     $ 29.86       1.2       -  
Exercisable at March 31, 2013     8,050     $ 29.86       1.2       -  

 

There were 3,950 shares of restricted stock granted during the first three months of 2013. No shares of restricted stock were granted during the first three months of 2012. These awards were issued with an award price equal to the market price of the Bancorp’s common stock on the award date and with a five year vesting period. Forfeiture provisions exist for personnel that separate employment before the vesting period expires. During the first three months of 2012, 100 shares of restricted stock vested. At March 31, 2013, there were 7,250 shares of restricted stock outstanding.