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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2013
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

(6) 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 March 31, 2013, 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 March 31, 2013 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 March 31, 2013, 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 March 31, 2013 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)  

Three Months Ended March 31, 2013

        

Outstanding at December 31, 2012

     1,216,981     $ 31.98                  

Options granted

     —         —                    

Options exercised

     (8,250 )      17.22                  

Options cancelled, forfeited or expired

     —         —                    
   

 

 

                          

Outstanding at March 31, 2013

     1,208,731       32.08       8.43  Yrs    $ 11,632  
   

 

 

            

 

 

    

 

 

  

Exercisable at March 31, 2013

     626,031       26.20       5.01  Yrs    $ 9,703  
   

 

 

            

 

 

    

 

 

  

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

 

                 
    Three Months Ended
March 31,		  
    2013     2012  
    (Dollars in thousands)  

Total intrinsic value of options exercised

   $ 348     $ 1,132  

Cash received from options exercised

     142       483  

Tax benefit realized from options exercised

     135       438  

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:

 

                 
    Three Months Ended
March 31,		  
    2013     2012  
    (Dollars in thousands)  

Stock-based compensation expense

   $ 374     $ 441  

Tax

     145       171  
   

 

 

    

 

 

  

Stock-based compensation expense, net of tax

   $ 229     $ 270  
   

 

 

    

 

 

  

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:

 

         
    March 31, 2013  
    (Dollars in thousands)  

Fair value of stock options

   $ 5,103  

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

 

                 
    Three Months Ended
March  31,		  
    2013     2012  

Risk-free interest rate

     1.95 %      1.95 % 

Dividend yield

     2.00 %      2.00 % 

Stock price volatility

     20.21 %      38.75 % 

Expected term

     10  Yrs      10  Yrs 

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.