Stock Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2012

The fair values of these grants were estimated at the respective grant dates using a Black-Scholes option-pricing model with the following assumptions:

	2012	2011	2010
Dividend rate	3.05%	1.99%	1.90%
Risk-free interest rate	1.22%	2.73%	2.45%
Expected lives of options	6.25 years	6.25 years	6.25 years
Price volatility	38.80%	38.45%	39.48%

Summary of Outstanding Options

A summary of outstanding options at December 31, 2012, 2011 and 2010, and changes during the years ended on those dates, is as follows:

	Options			Weighted Average Grant Price Per Option		Fair Value Per Option

Outstanding December 31, 2009		338,482			18.79

Granted		69,222			16.50	$	5.70
Cancelled		(7,381	)		25.26
Exercised		(59,215	)		10.10
Outstanding December 31, 2010		341,108			19.69

Granted		81,343			16.58	$	5.62
Cancelled		(10,557	)		21.87
Exercised		(5,000	)		7.34
Outstanding December 31, 2011		406,894		$	19.16

Granted		151,522			10.82	$	3.02
Cancelled		(8,728	)		25.26
Exercised		(55,000	)		7.34
Outstanding December 31, 2012		494,688		$	17.82

Performance Stock Awards Valuation assumptions

Due to the market condition of achieving a target stock price in order to vest, the Company determined the grant date fair value of the performance shares, as well as the expected term of the awards, using a Monte Carlo simulation. The following assumptions were used in deriving the grant date fair value and expected term:

	Management Shares			Employee Shares
Assumptions:
Dividend rate		1.5	%		1.5	%
Risk free rate		4.44	%		4.38	%
Annual price volatility		34	%		34	%

Derived values:
Fair value per share	$	13.20		$	12.20
Expected term (years)		5.81			5.38

Share Grant Activity

A summary of outstanding share grants at December 31, 2012, 2011, and 2010, and changes during the years ended on those dates, is as follows:

	Shares

Outstanding December 31, 2009		55,946

Granted		41,415
Cancelled		(3,261	)
Vested and issued		-
Outstanding December 31, 2010		94,100

Granted		78,707
Cancelled		(6,733	)
Vested and issued		(18,931	)
Outstanding December 31, 2011		147,143

Granted		119,354
Cancelled		(8,098	)
Vested and issued		(45,045	)
Outstanding December 31, 2012		213,354