Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation

Schedule of stock-based compensation expense, within salaries and employee benefits

(in thousands)	2013		2012		2011
Stock-based compensation expense before income taxes	$	1,940	$	1,481	$	1,165
Deferred tax benefit	679		518		408
Reduction of net income	$	1,261	$	963	$	757

Schedule of assumptions used in option and SAR valuations

Assumptions	2013		2012		2011
Dividend yield	2.80	%	2.52	%	2.48	%
Expected volatility	22.54	%	22.04	%	22.64	%
Risk free interest rate	1.26	%	1.44	%	2.90	%
Forfeitures	6.40	%	4.20	%	6.07	%
Expected life of options (in years)	6.6		7.6		7.5

Schedule of stock option and SARs activity and related information

											Weighted
					Weighted				Weighted		average
					average		Aggregate		average		remaining
	Options		Exercise price		exercise		intrinsic		fair		contractual
(in thousands, except price and years)	and SARs		per share		price		value		value		life (years)
At December 31, 2012
Vested and exercisable	681		$	20.17-26.83	$	23.42	$	271	$	5.33	3.5
Unvested	246		21.03-26.83		22.62		77		4.67		7.9
Total outstanding	927		20.17-26.83		23.21		348		5.15		4.7
Granted	54		22.89		22.89		484		3.61
Exercised	(180	)	20.17-26.83		21.71		1,124		4.81
Forfeited	(4	)	21.03-23.76		22.78		32		4.88
At December 31, 2013
Vested and exercisable	579		20.25-26.83		23.83		4,685		5.43		3.4
Unvested	218		21.03-24.87		22.70		2,011		4.36		7.7
Total outstanding	797		20.25-26.83		23.52		$	6,696	5.14		4.6
Vested during year	79		21.03-24.87		22.56		$	743	4.81

Schedule of restricted common stock activity

			Grant date
			weighted-
	Number		average cost
Unvested at December 31, 2010	81,682		$	21.58
Shares awarded	41,991		23.96
Restrictions lapsed and shares released to employees/directors	(21,333	)	21.82
Shares forfeited	(7,333	)	22.61
Unvested at December 31, 2011	95,007		$	22.49
Shares awarded	57,156		22.71
Restrictions lapsed and shares released to employees/directors	(30,782	)	22.66
Shares forfeited	(7,471	)	22.59
Unvested at December 31, 2012	113,910		$	22.55
Shares awarded	55,275		22.93
Restrictions lapsed and shares released to employees/directors	(39,909	)	22.29
Shares forfeited	(4,720	)	23.45
Unvested at December 31, 2013	124,556		$	22.77

Schedule of RSU grants

				Expected
	Vesting			shares
Grant	period	Fair		to be
year	in years	value		awarded
2011	3	$	21.99	16,857
2012	3	20.57		22,668
2013	3	20.38		28,579

Schedule of options and SARs outstanding

Expiration	Number of options and SARs outstanding	Options and SARs exercisable	Weighted average exercise price of options and SARs outstanding
2014	92	92	22.69
2015	1	1	20.90
2016	144	144	24.07
2017	120	120	26.81
2018	73	73	23.37
2019	77	60	22.14
2020	77	45	21.03
2021	62	25	23.78
2022	97	19	22.87
2022	54	—	22.89
	797	579	$	23.52

Schedule of number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance

The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all the Bancorp’s equity compensation plans as of December 31, 2013.

Plan category (shares in thousands)	Number of shares to be issued upon exercise	Weighted average exercise price		Shares available for future issuance (a)
Equity compensation plans approved by security holders:
Stock options	356	$	24.63	513
Stock appreciation rights (SARs)	(b)	(b)		(a)
Restricted stock	125	N/A		(a)
Restricted stock units	(c)	N/A		(a)
Total shares	481			513

(a)  Under the 2005 Stock Incentive plan, shares of stock are authorized for issuance as incentive and nonqualified stock options, SARs, restricted stock, and restricted stock units

(b)  At December 31, 2013, approximately 441,000 SARs were outstanding at a weighted average grant price of $22.63.  The number of shares to be issued upon exercise will be determined based on the difference between the grant price and the market price at the date of exercise.

(c)  The number of shares to be issued is dependend upon Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 110,000 shares.