Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2011
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
NOTE 7 - STOCK-BASED COMPENSATION

The Company recognizes the cost of stock-based associate stock compensation in accordance with ASC-718-20-05-1 and ASC 718-50-05-01, (formerly SFAS No. 123R), "Share-Based Payment" (Revised) under the fair value method.

As of September 30, 2011, the Company had three stock-based compensation plans, consisting of the 2011 Associate Stock Incentive Plan ("ASIP"), the 2011 Associate Stock Purchase Plan ("ASPP"), and the 2011 Director Stock Purchase Plan ("DSPP"). These plans are new plans replacing substantially similar plans approved by the shareowners in 2004.  Total compensation expense associated with these plans for the nine months ended September 30, 2011 and 2010 was $508,000 and $101,000, respectively.  
 
ASIP.  The Company's ASIP allows the Company's Board of Directors to award key associates various forms of equity-based incentive compensation.  Under the ASIP, all participants in this plan are eligible to earn an equity award, in the form of performance shares.  The Company, under the terms and conditions of the ASIP, created the 2011 Incentive Plan ("2011 Plan"), which has an award tied to an internally established earnings goal.  The grant-date fair value of the shares eligible to be awarded in 2011 is approximately $895,000.  A total of 51,952 shares are eligible for issuance.  For the first nine months of 2011, the Company recognized approximately $336,000 in expense related to the ASIP.  No expense related to this plan was recognized for the first nine months of 2010.
 
Executive Stock Option Agreement.  Prior to 2007, the Company maintained a stock option program for a key executive officer (William G. Smith, Jr. - Chairman, President and CEO, CCBG).  The status of the options granted under this arrangement is detailed in the table provided below.  In 2007, the Company replaced its practice of entering into an annual stock option arrangement by establishing a Performance Share Unit Plan under the provisions of the ASIP that allows the executive to earn shares based on the compound annual growth rate in diluted earnings per share over a three-year period.  For the first nine months of 2011, the Company recognized $94,000 in expense related this plan.  No expense was recognized under this plan for the first nine months of 2010.

A summary of the status of the Company's options as of September 30, 2011 is presented below:

Options
  
Shares
    
Weighted-Average Exercise Price
    
Weighted-Average Remaining Term
    
Aggregate Intrinsic Value
  
Outstanding at January 1, 2011
     60,384     $ 32.79       3.9     $ -  
Granted
     -       -       -       -  
Exercised
     -       -       -       -  
Forfeited or expired
     -       -       -       -  
Outstanding at September 30, 2011
     60,384     $ 32.79       3.1     $ -  
Exercisable at September 30, 2011
     60,384     $ 32.79       3.1     $ -  

Compensation expense associated with the aforementioned option shares was fully recognized as of December 31, 2007. 
 
DSPP.  The Company's DSPP allows the directors to purchase the Company's common stock at a price equal to 90% of the closing price on the date of purchase.  Stock purchases under the DSPP are limited to the amount of the director's annual cash compensation.  For the first nine months 2011 and 2010, the Company recognized approximately $20,000 in expense related to this plan or its predecessor plan, the 2005 Director Stock Purchase Plan.  

ASPP.  Under the Company's ASPP, substantially all associates may purchase the Company's common stock through payroll deductions at a price equal to 90% of the lower of the fair market value at the beginning or end of each six-month offering period.  Stock purchases under the ASPP are limited to 10% of an associate's eligible compensation, up to a maximum of $25,000 (fair market value on each enrollment date) in any plan year.  Shares are issued at the beginning of the quarter following each six-month offering period.  For the first nine months of 2011, the Company recognized approximately $59,000 in expense related to the ASPP or its processor plan, the 2005 Associate Stock Purchase Plan, compared to approximately $81,000 in expense for the same period in 2010.