Stock-based Compensation Plan

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation Plan

Stock-based Compensation Plan

The Company has two stock-based compensation plans in effect at December 31, 2016. The 2005 Stock Incentive Plan expired in April 2015, but still has non-vested restricted stock awards at December 31, 2016. The 2015 Stock Incentive Plan provides incentives and awards to select employees and directors of the Company and permits the granting of stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares and performance awards. At December 31, 2016, the number of shares available to award to employees and directors under the 2015 Stock Incentive Plan was 2,352,608.

Restricted Stock Awards

The Company has awarded restricted stock to select employees and directors under the 2005 and 2015 Stock Incentive Plans. Common stock is issued as vesting restrictions lapse, which may be immediately or according to the terms of a vesting schedule. Restricted stock awards may not be sold, pledged or otherwise transferred until restrictions have lapsed. Under the 2005 Stock Incentive Plan, the recipient does not have the right to vote until the restricted stock award has vested but does have the right to receive dividends. Under the 2015 Stock Incentive Plan, the recipient does not have the right to vote or to receive dividends until the restricted stock award has vested. The fair value of the restricted stock awarded is the closing price of the Company’s common stock on the award date.

Compensation expense related to restricted stock awards for the years ended December 31, 2016, 2015 and 2014 was $2,870,000, $2,470,000 and $1,603,000, respectively, and the recognized income tax benefit related to this expense was $1,112,000, $957,000 and $622,000. As of December 31, 2016, total unrecognized compensation expense of $3,174,000 related to restricted stock awards is expected to be recognized over a weighted-average period of 1.9 years.

The fair value of restricted stock awards that vested during the years ended December 31, 2016, 2015 and 2014 was $2,624,000, $1,761,000 and $953,000, respectively, and the income tax benefit related to these awards was $1,053,000, $795,000 and $532,000, respectively. Upon vesting of restricted stock awards, the shares are issued from the Company’s authorized stock balance.

The following table summarizes the restricted stock award activity for the year ended December 31, 2016:

	Restricted Stock		Weighted- Average Grant Date Fair Value
Non-vested at December 31, 2015	205,989		$	24.24
Granted	134,329		23.38
Vested	(115,070	)	22.80
Forfeited	(2,516	)	24.52
Non-vested at December 31, 2016	222,732		24.46

The average remaining contractual term on non-vested restricted stock awards at December 31, 2016 is eleven months. The aggregate intrinsic value of the non-vested restricted stock awards at December 31, 2016 was $8,070,000.