As of December 31, 2010, there was $64,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the Plan. The cost is expected to be recognized over a weighted-average period  of 2.1 years. A summary of the Bancorp’s stock option activity for 2010 and 2009 follows: NOTE 13 - Earnings Per Common Share  There were 49,247 and 65,747 anti-dilutive shares outstanding at December 31, 2010 and 2009, respectively. As of December 31, 2010, there was $2,000 of total unrecognized compensation costs related to nonvested  incentive stock options granted under the Plan. The cost  is expected to be recognized over a weighted-average period of 2.2 years. Restricted stock awards are generally granted with  an award price equal to the market price of the Bancorp’s common stock on the award date. Restricted stock awards have been issued with a five year vesting period. Forfeiture provisions exist for personnel that separate employment before the vesting period expires. Compensation expense related to restricted stock awards are recognized over the vesting period. Total compensation cost that has been charged against income for those plans was $35,000  and $39,000 for 2010 and 2009, respectively.  A summary of changes in the Bancorp’s nonvested restricted stock for 2010 and 2009 follows: The Bancorp had aggregate loans outstanding to  directors and executive officers (with individual balances exceeding $120,000) of $7,951,000 at December 31, 2010 and $9,825,000 at December 31, 2009. For the year ended December 31, 2010, the following activity occurred on these loans: Deposits from directors and executive officers were $1,900,000 and $1,700,000 at December 31, 2010 and 2009, respectively.  37 Weighted Average Grant Date Nonvested Shares Shares Fair Value _____________ __________ __________ Nonvested at January 1, 2009 ............................ 7,550 $ 30.14 Granted............................................................ 2,500 18.95 Vested ............................................................. (1,800) 30.50 Forfeited ......................................................... (700) 27.93 __________ __________ Nonvested at December 31, 2009 ...................... 7,550 $ 26.55 Granted............................................................ 300 16.75 Vested ............................................................. (250) 35.50 Forfeited ......................................................... (850) 26.76 __________ __________ Nonvested at December 31, 2010 ...................... 6,750 $ 25.72 __________ __________ (Dollars in thousands) Aggregate balance at the beginning of the year.................. $ 9,825 New loans ..................................................................... 1,133 Repayments .................................................................. (3,007) ________ Aggregate balance at the end of the year............................ $ 7,951 ________ Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value  __________ __________ __________ __________ Outstanding at January 1, 2009............. 70,597 $ 23.56 Granted........................... – . – . Exercised......................... (200)  20.50 Forfeited or expired......... (4,650) 21.73 __________ __________ Outstanding at  end of year .................... 65,747 $ 23.69 2.2 $ – . __________ __________ __________ __________ Vested or expected  to vest ........................... 65,747 $ 23.69 2.2 $ – . __________ __________ __________ __________ Exercisable at  December 31, 2009....... 64,747 $ 23.62 2.1 $ – . __________ __________ __________ __________ Outstanding at  January 1, 2010............. 65,747 $ 23.69 2.2 $ – . Granted........................... –. – . Exercised......................... – . – . Forfeited or expired......... (16,500) 21.98 __________ __________ Outstanding at  end of year .................... 49,247 $ 24.27 1.7 $ – . __________ __________ __________ __________ Vested or expected  to vest ........................... 49,247 $ 24.27 1.7 $ – . __________ __________ __________ __________ Exercisable at  December 31, 2010....... 48,247 $ 24.18 1.6 $ – . __________ __________ __________ __________ 2010 2009 __________ __________ Basic earnings per common share: Net income available to common stockholders... $ 5,178,547 $ 2,487,851 __________ __________ Weighted-average common  shares outstanding........................................... 2,823,599 2,814,488 __________ __________ Basic earnings per common share.................... $ 1.83 $ 0.88 __________ __________ Diluted earnings per common share: Net income available to  common stockholders ..................................... $ 5,178,547 $ 2,487,851 __________ __________ Weighted-average common  shares outstanding........................................... 2,823,599 2,814,488 Add: dilutive effect of assumed  stock option exercises and restricted stock ....... – . – . __________ __________ Weighted-average common and  dilutive potential common shares  outstanding ..................................................... 2,823,599 2,814,488 __________ __________ Diluted earnings  per common share.......................................... $ 1.83 $ 0.88 __________ __________ A reconciliation of the numerators and denominators  of the basic earnings per common share and diluted earnings per common share computations for 2010 and 2009 is presented below. NOTE 14 - Related Party Transactions