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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2012
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

(13) STOCK-BASED COMPENSATION

The Company adopted a nonqualified incentive stock option plan (the “BancFirst ISOP”) in May 1986. The Company amended the BancFirst ISOP to increase the number of shares to be issued under the plan to 2,800,000 shares in May 2011. At December 31, 2012, 15,860 shares were available for future grants. The BancFirst ISOP will terminate on December 31, 2014. The options are exercisable beginning four years from the date of grant at the rate of 25% per year for four years. Options expire at the end of fifteen years from the date of grant. Options outstanding as of December 31, 2012 will become exercisable through the year 2019. The option price must be no less than 100% of the fair value of the stock relating to such option at the date of grant.

In June 1999, the Company adopted the BancFirst Corporation Non-Employee Directors’ Stock Option Plan (the “BancFirst Directors’ Stock Option Plan”). Each non-employee director is granted an option for 10,000 shares. The Company amended the BancFirst Directors’ Stock Option Plan to increase the number of shares to be issued under the plan to 205,000 shares in May 2009. At December 31, 2012, 30,000 shares were available for future grants. The options are exercisable beginning one year from the date of grant at the rate of 25% per year for four years, and expire at the end of fifteen years from the date of grant. Options outstanding as of December 31, 2012 will become exercisable through the year 2015. The option price must be no less than 100% of the fair value of the stock relating to such option at the date of grant.

The Company currently uses newly issued stock to satisfy stock-based exercises, but reserves the right to use treasury stock purchased under the Company’s Stock Repurchase Program (the “SRP”) in the future.

 

The following table is a summary of the activity under both the BancFirst ISOP and the BancFirst Directors’ Stock Option Plan:

 

                                 
    Options     Wgtd.
Avg.
Exercise
Price		     Wgtd. Avg.
Remaining
Contractual
Term		     Aggregate
Intrinsic
Value		  
    (Dollars in thousands, except per share data)  

Year Ended December 31, 2012

                                

Outstanding at December 31, 2011

     1,298,431     $ 30.14                  

Options granted

     49,000       40.93                  

Options exercised

     (130,450 )      17.07                  

Options canceled, forfeited, or expired

     —         —                    
   

 

 

                          

Outstanding at December 31, 2012

     1,216,981       31.98       8.63 Yrs     $ 12,637  
   

 

 

            

 

 

    

 

 

  

Exercisable at December 31, 2012

     620,281       25.72       5.22 Yrs     $ 10,324  
   

 

 

            

 

 

    

 

 

  

Year Ended December 31, 2011

                                

Outstanding at December 31, 2010

     1,172,181     $ 28.32                  

Options granted

     180,000       39.39                  

Options exercised

     (48,750 )      19.76                  

Options canceled, forfeited, or expired

     (5,000 )      37.50                  
   

 

 

                          

Outstanding at December 31, 2011

     1,298,431       30.14       8.66 Yrs     $ 9,607  
   

 

 

            

 

 

    

 

 

  

Exercisable at December 31, 2011

     706,731       23.27       5.34 Yrs     $ 10,083  
   

 

 

            

 

 

    

 

 

  

The following table has additional information regarding options granted and options exercised under both the BancFirst ISOP and the BancFirst Directors’ Stock Option Plan:

 

                         
    Year Ended December 31,  
    2012     2011     2010  
   

(Dollars in thousands,

except per share data)

  

Weighted average grant-date fair value per share of options granted

   $ 8.82     $ 12.79     $ 15.69  

Total intrinsic value of options exercised

     3,297       912       1,445  

Cash received from options exercised

     2,227       963       1,611  

Tax benefit realized from options exercised

     1,275       353       559  

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility, and the expected term. The fair value of each option is expensed over its vesting period.

The following table is a summary of the Company’s recorded stock-based compensation expense:

 

                         
    Year Ended December 31,  
    2012     2011     2010  
    (Dollars in thousands)  

Stock-based compensation expense

   $ 1,530     $ 1,375     $ 1,218  

Tax

     592       532       471  
   

 

 

    

 

 

    

 

 

  

Stock-based compensation expense, net of tax

   $ 938     $ 843     $ 747  
   

 

 

    

 

 

    

 

 

  

 

The Company will continue to amortize the remaining fair value of stock options over the remaining vesting period of approximately seven years. The following table shows the remaining fair value of stock options:

 

         
    December 31, 2012  
    (Dollars in thousands)  

Fair value of stock options

   $ 5,435  

The following table shows the assumptions used for computing stock-based compensation expense under the fair value method:

 

                         
    Year Ended December 31,  
            2012                                  2011                                     2010               

Risk-free interest rate

     1.74% to 1.95%       1.97% to 3.61%       2.62% to 4.00%  

Dividend yield

     2.00%       2.00%       2.00%  

Stock price volatility

     21.71% to 38.75%       25.26% to 38.43%       27.28% to 38.61%  

Expected term

     10Yrs       10Yrs       10Yrs  

The risk-free interest rate is determined by reference to the spot zero-coupon rate for the U.S. Treasury security with a maturity similar to the expected term of the options. The dividend yield is the expected yield for the expected term. The stock price volatility is estimated from the recent historical volatility of the Company’s stock. The expected term is estimated from the historical option exercise experience.

In May 1999, the Company adopted the BancFirst Corporation Directors’ Deferred Stock Compensation Plan (the “BancFirst Deferred Stock Compensation Plan”). The Company amended the BancFirst Deferred Stock Compensation Plan to increase the number of shares to be issued under the plan to 80,000 shares in May 2009. Under the plan, directors and members of the community advisory boards of the Company and its subsidiaries may defer up to 100% of their board fees. They are credited for each deferral with a number of stock units based on the current market price of the Company’s stock, which accumulate in an account until such time as the director or community board member terminates serving as a board member. Shares of common stock of the Company are then distributed to the terminating director or community board member based upon the number of stock units accumulated in his or her account. A summary of the accumulated stock units is as follows:

 

                 
    December 31,  
    2012     2011  

Accumulated stock units

     55,390       51,190  

Average price

   $ 33.98     $ 33.21