XML 162 R38.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCK BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Cumulatively Granted Stock Options and Restricted Stock Awards, Net of Forfeitures
The following table presents the amount of cumulatively granted stock options and restricted stock awards, net of forfeitures, through December 31, 2012:

 
 
Authorized
Stock
Option Awards
 
Authorized
Restricted
Stock Awards
 
Total
 
Cumulative Granted, Net of
Forfeitures
 
Total
 
Authorized
but
Unissued
 
Stock
Option  Awards
 
Restricted
Stock  Awards
 
 
 
1996 Plan
300,000

 
N/A
 
300,000

 
191,000

 
N/A

 
191,000

 
(4)

 
1997 Plan
1,100,000

 
N/A
 
1,100,000

 
972,771

 
N/A

 
972,771

 
(4)

 
2005 Plan
(1)

 
(1)
 
1,650,000

 
424,899

 
373,156

 
798,055

 
851,945

 
2006 Plan
(2)

 
(2)
 
35,400

 
15,000

 
20,400

 
35,400

 
(4)

 
2010 Plan
(3)

 
(3)
 
314,600

 
22,000

 
41,600

 
63,600

 
251,000

 
(1)
The Company may award up to a total of 1,650,000 shares as stock options or restricted stock awards.
(2)
The Company may award up to a total of 50,000 shares as stock options or restricted stock awards. During 2010, the remaining 14,600 shares were transferred and available for issue under the 2010 Plan.
(3)
The Company may award up to a total of 314,600 shares as stock options or restricted stock awards, inclusive of 14,600 shares which were transferred from the 2006 Plan.
(4)
There are no shares available for grant under the 1996 Plan or 1997 Plan due to their expirations. These Plans have outstanding stock options exercisable despite the Plan expiration. Additionally, the 2006 Plan has outstanding stock options exercisable despite the transfer of remaining authorized shares to the 2010 Plan.
Schedule of Pre-tax Compensation Expense and Related Tax Benefits
The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the years presented:

 
Years Ended December 31
 
2012
 
2011
 
2010
 
(Dollars in thousands)
Stock based compensation expense
 
 
 
 
 
Stock options
$
526

 
$
662

 
$
436

Restricted stock awards(1)
1,968

 
1,502

 
1,018

Directors’ fee expense
 
 
 
 
 
Stock options
19

 
65

 
63

Restricted stock awards
332

 
254

 
149

Total stock based award expense
$
2,845

 
$
2,483

 
$
1,666

Related tax benefits recognized in earnings
$
932

 
$
1,014

 
$
681

(1)
Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards.
Schedule of Stock Options Vesting Period and Contractual Term
The following table provides vesting period and contractual term information for stock option awards issued for 2011 and 2010:

Date of Grant
Plan
 
Vesting Period From
Date of Grant
 
Contractual
Term
May 25, 2010
2010
 
20 months
 
10 years
February 10, 2011
2005
 
3 years
 
10 years
February 17, 2011
2005
 
3 years
 
10 years
May 24, 2011
2010
 
20 months
 
10 years
Schedule of Stock Options Granted
During the year ended December 31, 2012, the Company did not issue stock options. During the years ended December 31, 2011 and 2010, the Company has made the following awards of nonqualified options to purchase shares of common stock:

 
Years Ended December 31
 
2011
 
2010
Date of grant
2/10/2011
 
2/17/2011
 
5/24/2011
 
5/25/2010
Plan
2005
 
2005
 
2010
 
2010
Options granted
40,000
 
54,000
 
7,000
 
15,000
Vesting period (1)
3 years
 
3 years
 
20 months
 
3 years
Expiration date
2/10/2021
 
2/17/2021
 
5/24/2021
 
5/25/2020
Expected volatility
32%
 
32%
 
33%
 
39%
Expected life (years)
5.5
 
5
 
5
 
5
Expected dividend yield
2.90%
 
2.89%
 
2.87%
 
3.18%
Risk free interest rate
2.57%
 
2.27%
 
1.81%
 
2.01%
Fair value
$6.81
 
$6.39
 
$6.72
 
$6.31
 
(1)
Vesting periods begin on the grant date unless otherwise noted.
Schedule of Relevant Information Relating to Stock Options
The following table presents relevant information relating to the Company’s stock options for the periods indicated:

 
Years Ended December 31
 
2012
 
2011
 
2010
 
(Dollars in thousands)
Fair value of stock options vested based on grant date fair value
$
706

 
$
506

 
$
460

Intrinsic value of stock options exercised/forfeited
$
627

 
$
943

 
$
406

Cash received from stock option exercises
$
1,242

 
$
4,127

 
$
743

Tax benefit realized on stock option exercises/repurchase
$
242

 
$
735

 
$
91

Weighted average grant date fair value of options granted (per share)
$
—

 
$
6.58

 
$
6.31

Cash paid to settle equity instruments granted under stock based compensation arrangements
$
134

 
$
—

 
$
—
Schedule of Stock Options
A summary of the status of the Company’s Stock Option Grants for the year ended December 31, 2012 is presented in the table below:

 
Outstanding
 
Nonvested
 
 
 
Stock Option
Awards
 
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (years)
 
Aggregate
Intrinsic
Value (1)
 
Stock
Option
Awards
 
 
Weighted
Average
Grant Date
Fair Value
 
 
 
(Dollars in thousands, except per share data)
 
 
Balance at January 1, 2012
976,066

  
 
$
29.18

 
 
 
 
 
203,220

 
 
$
6.64

 
 
Granted
—

  
 
$
—

 
 
 
 
 
—

 
 
$
—

 
 
Exercised/repurchased
(251,425
)
 
 
$
26.56

 
 
 
 
 
n/a

 
 
n/a

 
 
Vested
n/a

 
 
n/a

 
 
 
 
 
(99,703
)
 
 
$
7.09

 
 
Forfeited
(4,333
)
 
 
$
24.08

 
 
 
 
 
(4,333
)
 
 
$
5.82

 
 
Expired
(36,067
)
 
 
$
30.04

 
 
 
 
 
—

 
 
$
—

 
 
Balance at December 31, 2012
684,241

(2)
 
$
30.13

 
4.00
 
$
422

 
99,184

(4)
 
$
6.23

 
 
Options outstanding and expected to vest at December 31, 2012
682,737

(2)
 
$
30.14

 
3.99
 
$
420

 
 
 
 
 
 
 
Options exercisable at December 31, 2012
585,057

(3)
 
$
30.52

 
3.48
 
$
329

 
 
 
 
 
 
 
Unrecognized compensation cost, including forfeiture estimate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
275

Weighted average remaining recognition period (years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.97

 
(1)
The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2012 of $28.73 which would have been received by the option holders had they all exercised their options as of that date.
(2)
Inclusive of 58,000 stock options outstanding and expected to vest to Directors.
(3)
Inclusive of 55,842 vested stock options outstanding to Directors.
(4)
Inclusive of 2,158 nonvested stock options outstanding to Directors.
Schedule of Restricted Stock Granted
The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. During the years ended December 31, 2012, 2011, and 2010 the Company has made the following restricted stock award grants:


Shares Granted
 
Plan
 
Fair Value (1)
 
Vesting Period
Time-vested
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
2/16/2012
89,800

 
2005
 
27.81

 
Ratably over 5 years from grant date
4/5/2012
1,000

 
2005
 
28.16

 
Ratably over 5 years from grant date
5/22/2012
1,000

 
2010
 
27.63

 
Immediate upon grant
5/22/2012
13,000

 
2010
 
27.63

 
At the end of 5 years from grant date(2)
11/10/2012
1,000

 
2010
 
28.03

 
At the end of 5 years from grant date(2)
2011
 
 
 
 
 
 
 
2/10/2011
27,750

 
2005
 
27.58

 
Ratably over 5 years from grant date
2/17/2011
33,000

 
2005
 
27.43

 
Ratably over 5 years from grant date
5/3/2011
3,000

 
2005
 
29.00

 
Ratably over 5 years from grant date
5/24/2011
9,800

 
2010
 
28.88

 
At the end of 5 years from grant date(2)
2010
 
 
 
 
 
 
 
2/11/2010
37,000

 
2005
 
23.39

 
Ratably over 3 years from grant date
2/25/2010
54,500

 
2005
 
25.12

 
Ratably over 3 years from grant date
5/25/2010
16,800

 
2010
 
23.07

 
At the end of 3 years from grant date(2)
 
 
 
 
 
 
 
 
Performance-based
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
8/8/2011
3,637

 
2005
 
23.81

 
On December 31, 2014
 
(1)
The fair value of the restricted stock awards are based upon the average of the high and low price at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards.
(2)
These restricted stock grants will vest at the end of a three or five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. If a non-employee director is removed from the Board for cause, the Company has ninety (90) days within which to exercise a right to repurchase any unvested portion of any restricted stock award from the non-employee director for the aggregate price of one dollar ($1.00).
Schedule of Fair Value of Restricted Stock Awards Vesting
The following table presents the fair value of restricted stock awards vesting during the periods presented:

 
Years Ended December 31
 
2012
 
2011
 
2010
 
(Dollars in thousands)
Fair value of restricted stock awards upon vest
$
2,085

 
$
1,599

 
$
623
Schedule of Restricted Stock Awards
A summary of the status of the Company’s Restricted Stock Award Grants for the year ended December 31, 2012 is presented in the table below:

 
Outstanding Restricted Stock
Awards
 
 
Weighted Average
Grant Price ($)
 
 
 
(Dollars in thousands, except per share data)
 
 
Balance at January 1, 2012
239,177

  
 
$
23.70

 
 
Granted
105,800

  
 
27.79

 
 
Vested/released
(74,350
)
 
 
23.54

 
 
Forfeited
(2,866
)
  
 
26.68

 
 
Expired
—

  
 
—

 
 
Balance at December 31, 2012
267,761

(1)
 
$
25.33

 
 
Unrecognized compensation cost (inclusive of directors’ fees), including forfeiture estimate
 
 
 
 
 
$
4,385

Weighted average remaining recognition period (years)
 
 
 
 
 
3.23

 
(1)
Inclusive of 62,000 restricted stock awards outstanding to Directors.