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STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION
NOTE 18. STOCK-BASED COMPENSATION
 
The Company awards its employees and directors various forms of stock-based incentives under certain plans approved by its shareholders. Awards granted under the plans may be in the form of qualified or nonqualified stock options, restricted stock, stock appreciation rights (“SARs”), long-term incentive compensation units consisting of cash and common stock, or any combination thereof within the limitations set forth in the plans. The plans provide that the aggregate number of shares of the Company’s common stock which may be subject to award may not exceed 2,985,000 subject to adjustment in certain circumstances to prevent dilution. At December 31, 2015, there were 1,120,000 shares available to be issued under the plans.
 
All stock options have an exercise price that is equal to the closing fair market value of the Company’s stock on the date the options were granted. Options granted under the plans generally vest over a five-year period and have a 10-year maximum term. Most options granted since 2005 contain performance-based vesting conditions. 
 
The Company did not grant any options during 2015, 2014 or 2013. As of December 31, 2015, there was no unrecognized compensation cost related to nonvested share-based compensation arrangements granted related to performance or non-performance-based options. 
 
As of December 31, 2015, the Company has 285,326 outstanding restricted shares granted under the plans as compensation to certain employees. These shares carry dividend and voting rights. Sales of these shares are restricted prior to the date of vesting, which is three to five years from the date of the grant. Shares issued under the plans are recorded at their fair market value on the date of their grant. The compensation expense is recognized on a straight-line basis over the related vesting period. In 2015, 2014 and 2013, compensation expense related to these grants was approximately $1,485,000, $2,058,000 and $1,041,000, respectively. The total income tax benefit related to these grants was approximately $1,069,000, $861,000 and $152,000 in 2015, 2014 and 2013, respectively.
 
It is the Company’s policy to issue new shares for stock option exercises and restricted stock rather than issue treasury shares. The Company recognizes stock-based compensation expense on a straight-line basis over the options’ related vesting term. The Company did not record any stock-based compensation expense related to stock options during 2015, 2014 and 2013. The total income tax benefit related to stock options was approximately $102,000 and $49,000 in 2015 and 2014, respectively. There was no income tax benefit related to stock options in 2013.
 
The fair value of each stock-based compensation grant is estimated on the date of grant using the Black-Scholes option-pricing model.
 
A summary of the activity of non-performance-based and performance-based options as of December 31, 2015 is presented below:
 
 
 
Non-Performance-Based
 
Performance-Based
 
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted
Average
Contractual
Term
 
Aggregate
Intrinsic
Value
$ (000)
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted
Average
Contractual
Term
 
Aggregate
Intrinsic
Value
$ (000)
 
Under option, beginning of year
 
 
88,111
 
$
18.00
 
 
 
 
 
 
 
 
359,331
 
$
16.74
 
 
 
 
 
 
 
Granted
 
 
-
 
 
-
 
 
 
 
 
 
 
 
-
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
(15,628)
 
 
15.47
 
 
 
 
$
242
 
 
(59,507)
 
 
15.39
 
 
 
 
$
916
 
Forfeited
 
 
-
 
 
-
 
 
 
 
 
 
 
 
(75,691)
 
 
17.37
 
 
 
 
 
 
 
Under option, end of year
 
 
72,483
 
$
18.55
 
 
2.13
 
$
1,331
 
 
224,132
 
$
16.92
 
 
1.80
 
$
3,697
 
Exercisable at end of year
 
 
72,483
 
$
18.55
 
 
2.13
 
$
1,331
 
 
189,587
 
$
15.91
 
 
2.06
 
$
3,252
 
  
A summary of the activity of non- performance-based and performance-based options as of December 31, 2014 is presented below:
 
 
 
Non-Performance-Based
 
Performance-Based
 
 
 
 
 
Weighted-
 
Weighted
 
Aggregate
 
 
 
 
Weighted-
 
Weighted
 
Aggregate
 
 
 
 
 
Average
 
Average
 
Intrinsic
 
 
 
 
Average
 
Average
 
Intrinsic
 
 
 
 
 
Exercise
 
Contractual
 
Value
 
 
 
Exercise
 
Contractual
 
Value
 
 
 
Shares
 
Price
 
Term
 
$ (000)
 
Shares
 
Price
 
Term
 
$ (000)
 
Under option, beginning of year
 
 
115,459
 
$
17.24
 
 
 
 
 
 
 
 
371,000
 
$
16.76
 
 
 
 
 
 
 
Granted
 
 
-
 
 
-
 
 
 
 
 
 
 
 
-
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
(25,395)
 
 
14.81
 
 
 
 
$
148
 
 
(6,477)
 
 
11.05
 
 
 
 
$
72
 
Forfeited
 
 
(1,953)
 
 
14.88
 
 
 
 
 
 
 
 
(5,192)
 
 
25.51
 
 
 
 
 
 
 
Under option, end of year
 
 
88,111
 
$
18.00
 
 
2.71
 
$
884
 
 
359,331
 
$
16.74
 
 
2.11
 
$
2,955
 
Exercisable at end of year
 
 
88,111
 
$
18.00
 
 
2.71
 
$
884
 
 
341,030
 
$
17.23
 
 
2.00
 
$
2,629
 
 
A summary of the activity of non- performance-based and performance-based options as of December 31, 2013 is presented below:
 
 
 
Non-Performance-Based
 
Performance-Based
 
 
 
 
 
 
Weighted-
 
Weighted
 
Aggregate
 
 
 
 
Weighted-
 
Weighted
 
Aggregate
 
 
 
 
 
Average
 
Average
 
Intrinsic
 
 
 
Average
 
Average
 
Intrinsic
 
 
 
 
 
Exercise
 
Contractual
 
Value
 
 
 
Exercise
 
Contractual
 
Value
 
 
 
Shares
 
Price
 
Term
 
$ (000)
 
Shares
 
Price
 
Term
 
$ (000)
 
Under option, beginning of year
 
 
148,498
 
$
16.37
 
 
 
 
 
 
 
 
391,321
 
$
16.43
 
 
 
 
 
 
 
Granted
 
 
-
 
 
-
 
 
 
 
 
 
 
 
-
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
(27,657)
 
 
13.29
 
 
 
 
$
107
 
 
(4,524)
 
 
7.47
 
 
 
 
$
42
 
Forfeited
 
 
(5,382)
 
 
13.43
 
 
 
 
 
 
 
 
(15,797)
 
 
13.22
 
 
 
 
 
 
 
Under option, end of year
 
 
115,459
 
$
17.24
 
 
3.04
 
$
641
 
 
371,000
 
$
16.76
 
 
3.12
 
$
1,401
 
Exercisable at end of year
 
 
115,459
 
$
17.24
 
 
3.04
 
$
641
 
 
351,856
 
$
17.27
 
 
3.01
 
$
1,145
 
 
A summary of the status of the Company’s restricted stock awards as of and for the years ended December 31, 2015, 2014 and 2013 is presented below:
 
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
Weighted-
 
 
 
 
Weighted-
 
 
 
 
Weighted-
 
 
 
 
 
Average
 
 
 
Average
 
 
 
Average
 
 
 
 
 
Grant-Date
 
 
 
Grant-Date
 
 
 
Grant-Date
 
 
 
Shares
 
Fair  Value
 
Shares
 
Fair  Value
 
Shares
 
Fair  Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested shares at beginning of year
 
 
323,151
 
$
13.46
 
 
377,725
 
$
11.78
 
 
295,075
 
$
10.47
 
Granted
 
 
71,000
 
 
23.46
 
 
82,047
 
 
20.99
 
 
108,400
 
 
14.77
 
Vested
 
 
(108,825)
 
 
9.96
 
 
(126,050)
 
 
13.12
 
 
(21,750)
 
 
9.31
 
Forfeited
 
 
-
 
 
-
 
 
(10,571)
 
 
15.61
 
 
(4,000)
 
 
9.88
 
Nonvested shares at end of year
 
 
285,326
 
 
17.29
 
 
323,151
 
 
13.46
 
 
377,725
 
 
11.78
 
 
The balance of unearned compensation related to restricted stock grants as of December 31, 2015, 2014 and 2013 was approximately $1,749,000, $1,568,000 and $2,129,000, respectively. At December 31, 2015, the cost is expected to be recognized over a weighted-average period of 2.0 years.