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Note 5 - Stock-based Compensation
 3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Stock-Based Compensation


Under the Company’s equity incentive plans, directors and eligible employees may be granted incentive or non-statutory stock options and/or restricted stock units, or awarded non-vested stock. As of March 31, 2016, the only options granted by the Company were non-statutory stock options to selected Bank officers and non-employee directors at exercise prices equal to the fair market value of a share of the Company’s common stock on the date of grant. Such options have a maximum ten-year term and vest in 20% annual increments (subject to early termination in certain events) except certain options granted to the Chief Executive Officer of the Company in 2005 and 2008. There were no options granted during the first quarter of 2016 or 2015.


Option compensation expense was zero for the three months ended March 31, 2016, and March 31, 2015. Stock-based compensation was fully recognized over the requisite service period for all awards. There were 2,110 and 3,750 stock option shares exercised in the first quarter ended March 31, 2016 and 2015, respectively. The Company received $49,000 with an aggregate intrinsic value of $9,000 from the exercise of stock options during the first quarter ended March 31, 2016 compared to $88,000 with an aggregate intrinsic value of $10,000 during the first quarter of March 31, 2015. The table below summarizes stock option activity for the periods indicated:


   

Shares

    

Weighted-average

Exercise Price

    

Weighted-average

Remaining Contractual

Life (in years)

    

Aggregate

Intrinsic

Value (in thousands)

  
                                 
                                 

Balance, December 31, 2015

     1,031,170     $ 31.27       0.9     $ 3,268  

Exercised

    (2,110 )     23.37                  

Forfeited

    (608,670 )     36.46                  

Balance, March 31, 2016

    420,390     $ 23.80       1.8     $ 2,026  
                                 

Exercisable, March 31, 2016

     420,390     $ 23.80       1.8     $ 2,026  

In addition to stock options, the Company also grants restricted stock units to eligible employees that vest subject to continued employment at the vesting dates.


The Company did not grant any restricted stock units in the first quarter of 2016. The Company granted restricted stock units for 37,675 shares at an average closing price for $27.53 per share in 2015.


In December 2013, the Company granted performance share unit awards in which the number of units earned is calculated based on the relative total shareholder return (TSR) of the Company’s common stock as compared to the TSR of the KBW Regional Banking Index. In addition, the Company granted performance share unit awards in which the number of units earned is determined by comparison to the targeted EPS as defined in the award for the 2014 to 2016 period. Performance TSR restricted stock units for 119,840 shares and performance EPS restricted stock units for 116,186 shares were granted to eight executive officers in 2013. In December 2014, the Company granted additional performance TSR restricted stock units for 60,456 shares and performance EPS restricted stock units for 57,642 shares were granted to seven executive officers. In December 2015, the Company granted additional performance TSR restricted stock units for 61,209 shares and performance EPS restricted stock units for 57,409 shares were granted to seven executive officers. Both the performance TSR and performance EPS units awarded are scheduled to vest three years from grant date.


The following table presents restricted stock unit activity during the three months ended March 31, 2016:


   

Units

  

Balance at December 31, 2015

    542,375  

Vested

    (4,812 )

Balance at March 31, 2016

    537,563  

The compensation expense recorded for restricted stock units was $1.0 million for the first quarter ended March 31, 2016, compared to $1.1 million in the same period a year ago. Unrecognized stock-based compensation expense related to restricted stock units was $6.5 million as of March 31, 2016, and is expected to be recognized over the next 2.2 years.


As of March 31, 2016, 3,789,782 shares were available under the Company’s 2005 Incentive Plan (as Amended and Restated) for future grants.


The following table summarizes the tax benefit (short-fall) from share-based payment arrangements:


   

Three months ended March 31,

  

(Dollars in thousands)

  

2016

    

2015

  

Tax benefit/(short-fall) of tax deductions in excess of grant-date fair value

   $ (3,298 )   $ (4,395 )

Benefit of tax deductions on grant-date fair value

     3,302       4,442  

Total benefit of tax deductions

   $ 4     $ 47  

The short-fall amount from share-based payment arrangements was charged against income tax expense. In addition, $140,000 was offset against the additional paid-in capital that resulted from previously realized excess tax benefits.