Employee Benefit and Deferred Compensation Plans

9 Months Ended

Sep. 30, 2012

Employee Benefit and Deferred Compensation Plans [Abstract]

Employee Benefit and Deferred Compensation Plans

Note H – Employee Benefit and Deferred Compensation Plans

(In Thousands, Except Share Data)

The plan expense for the Company-sponsored noncontributory defined benefit pension plan (“Pension Benefits”) and post-retirement health and life plans (“Other Benefits”) for the periods presented was as follows:

	Pension Benefits						Other Benefits
	Three Months  Ended September 30,						Three Months  Ended September 30,
	2012			2011			2012		2011
Service cost	$	—		$	—		$	6	$	9
Interest cost		216			228			16		21
Expected return on plan assets		(298	)		(307	)		—		—
Prior service cost recognized		—			—			—		—
Recognized actuarial loss		88			76			18		34
Recognized curtailment loss		—			—			—		—
Net periodic benefit cost	$	6		$	(3	)	$	40	$	64
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012		2011
Service cost	$	—		$	—		$	18	$	27
Interest cost		646			686			48		59
Expected return on plan assets		(894	)		(923	)		—		—
Prior service cost recognized		—			—			—		—
Recognized actuarial loss		266			228			54		106
Recognized curtailment loss		—			—			—		—
Net periodic benefit cost	$	18		$	(9	)	$	120	$	192

In January 2012 and 2011, the Company granted stock options which generally vest and become exercisable in equal installments of 33 1/3% upon completion of one, two and three years of service measured from the grant date. The fair value of stock option grants is estimated on the grant date using the Black-Scholes option-pricing model. The Company employed the following assumptions with respect to its stock option grants in 2012 and 2011 for the nine month periods ended September 30, 2012 and 2011:

	2012 Grant			2011 Grant
Shares granted		172,000			170,000
Dividend yield		4.55	%		4.02	%
Expected volatility		37	%		36	%
Risk-free interest rate		0.79	%		1.97	%
Expected lives		6 years			6 years
Weighted average exercise price	$	14.96		$	16.91
Weighted average fair value	$	3.10		$	3.93

In addition, the Company awarded 7,500 shares of time-based restricted stock and 34,000 shares of performance-based restricted stock in January 2012. The time-based restricted stock is earned 100% upon completion of three years of service measured from the grant date. The performance-based restricted stock is earned, if at all, if the Company meets or exceeds financial performance results defined by the board of directors for the year in which the grant was made. The fair value of the restricted stock grants on the date of the grants was $14.96 per share.

In April 2012, an amendment to the Company’s long-term incentive compensation plan was adopted that allows non-employee members of the Board of Directors to participate in the plan. Under this provision, the Company awarded 9,684 shares of time-based restricted stock to non-employee directors which are earned 100% upon the completion of one year of service measured from the grant date. The fair value of the restricted stock grants on the date of the grant was $15.49 per share.

During the nine months ended September 30, 2012, the Company reissued 54,344 shares from treasury in connection with the exercise of stock-based compensation. The Company recorded total stock-based compensation expense of $329 and $299 for the three months ended September 30, 2012 and 2011, respectively, and $937 and $904 for the nine months ended September 30, 2012 and 2011, respectively.