Share-Based Payments

9 Months Ended

Sep. 30, 2013

Share-Based Payments

Note 16 — Share-Based Payments

The Company’s 2002 Stock Award and Incentive Plan (the “Plan”) provides for the awarding of stock options and restricted stock to employees, officers and non-employee directors. Under the Plan, the Company grants directors, certain executives and other key employees restricted common stock, with vesting contingent upon completion of specified service periods ranging from one to five years. The Company also grants certain executives performance-based awards, with vesting contingent upon the Company’s achievement of specified financial goals.  The Plan is more fully described in Notes 14 and 17 to the Consolidated Financial Statements in the Company’s 2012 Annual Report on Form 10-K.

The following table summarizes the total share-based compensation expense and related tax benefits recognized for the three and nine months ended September 30, 2012 and 2013 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2013		2012		2013
Restricted stock compensation expense	$	383	$	173	$	1,189	$	563
Tax benefit related to restricted stock compensation	$	144	$	65	$	448	$	213

Stock option activity pursuant to the Plan for the nine months ended September 30, 2013 is summarized as follows:

	Plan Stock Options
	Number of Shares			Weighted Average Exercise Price
Outstanding, December 31, 2012		134,644		$	19.82
Granted		―			―
Exercised		―			―
Cancelled		(7,500	)		13.39
Outstanding, September 30, 2013		127,144			20.20

Restricted stock award activity pursuant to the Plan for the three months ended September 30, 2013 is summarized as follows:

	Restricted Stock Awards
	Number of Shares			Weighted Average Grant Price
Outstanding, December 31, 2012		95,315		$	16.75
Awarded		339,770			12.52
Released		(41,706	)		14.78
Forfeited		(10,122	)		14.83
Outstanding, September 30, 2013		383,257			13.26