XML 15 R16.htm IDEA: XBRL DOCUMENT
v3.19.3

Employee Benefit Plans | 9 Months Ended
--- | ---
Sep. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Stock Options A summary of the Company’s stock option activity and related information is presented below:
| Nine months ended September 30,
| 2019 | 2018
Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price
Outstanding at January 1 | 57,972 |  | $ | 51.15 |  | 87,605 |  | $ | 47.15 |
Exercised | (11,721 | ) | 44.87 |  | (29,133 | ) | 39.47 |
Outstanding at September 30 | 46,251 |  | $ | 52.74 |  | 58,472 |  | $ | 50.97 |
Exerciseable at September 30 | 8,063 |  | $ | 44.48 |  | 3,197 |  | $ | 42.82 |
Information regarding stock option exercises and stock-based compensation expense associated with stock options is provided in the following table (in thousands):
| Nine months ended September 30,
| 2019 | 2018
Proceeds from stock option exercises | $ | 526 |  | $ | 1,149 |
Intrinsic value of stock options exercised | 368 |  | 944 |
Stock-based compensation expense associated with stock options | $ | 92 |  | $ | 137 |
At period-end: | September 30, 2019 |
Unrecognized stock-based compensation expense associated with stock options | $ | 112 |  |
Weighted average period (in years) in which the above amount is expected to be |  |
recognized | 1.6 |  |
Shares issued in connection with stock option exercises are issued from available treasury shares. If no treasury shares are available, new shares would be issued from available authorized shares. During the nine months ended September 30, 2019 and 2018, all shares issued in connection with stock option exercises were issued from available treasury stock. For the stock options that have performance-based criteria, management has evaluated those criteria and has determined that, as of September 30, 2019, the criteria were probable of being met. Restricted Shares, Restricted Stock Units, Performance Share Units The Company records compensation expense with respect to restricted shares, restricted stock units and performance share units in an amount equal to the fair value of the common stock covered by each award on the date of grant. These awards become fully vested after various periods of continued employment from the respective dates of grant. The Company is entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted shares when the restrictions are released and the shares are issued. Compensation is being charged to expense over the respective vesting periods. Restricted shares are forfeited if the awardee officer or employee terminates his employment with the Company prior to the lapsing of restrictions. The Company records forfeitures of restricted stock as treasury share repurchases and any compensation cost previously recognized is reversed in the period of forfeiture. Recipients of restricted shares do not pay any cash consideration to the Company for the shares, and, except for restricted stock units and performance share units, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. For restricted shares that have performance-based criteria, management has evaluated those criteria and has determined that, as of September 30, 2019, the criteria were probable of being met. A summary of the Company’s restricted shares activity and related information is presented below:
| Nine months ended September 30,
| 2019 | 2018
Restricted Awards | Average Market Price at Grant | Restricted Awards | Average Market Price at Grant
Outstanding at January 1 | 152,692 |  | $ | 51.85 |  | 170,033 |  | $ | 44.34 |
Granted | 31,006 |  | 79.86 |  | 28,363 |  | 69.94 |
Vested | (45,007 | ) | 39.81 |  | (48,104 | ) | 37.31 |
Outstanding at September 30 | 138,691 |  | $ | 61.98 |  | 150,292 |  | $ | 51.42 |
Information regarding stock-based compensation associated with restricted shares is provided in the following table (in thousands):
| Nine months ended September 30,
| 2019 | 2018
Stock-based compensation expense associated with restricted shares | $ | 1,434 |  | $ | 1,201 |
At period-end: | September 30, 2019 |
Unrecognized stock-based compensation expense associated with restricted shares | $ | 4,845 |  |
Weighted average period (in years) in which the above amount is expected to be |  |
recognized | 3.3 |  |
Shares issued in conjunction with restricted stock awards are issued from available treasury shares. If no treasury shares are available, new shares would be issued from available authorized shares. During the nine months ended September 30, 2019 and 2018, all shares issued in connection with restricted stock awards were issued from available treasury stock. Benefit Plans The Company provides retirement benefits to its employees through the City Holding Company 401(k) Plan and Trust (the “401(k) Plan”), which is intended to be compliant with Employee Retirement Income Security Act (ERISA) section 404(c). The Company also maintains a frozen defined benefit pension plan (the “Defined Benefit Plan”), which was inherited from the Company's acquisition of the plan sponsor (Horizon Bancorp, Inc.). The following table presents the components of the Company's net periodic benefit cost, which is included in the line item "Other Expenses" in the consolidated statements of income, (in thousands):
| Three months ended September 30, | Nine months ended September 30,
2019 | 2018 | 2019 | 2018
Components of net periodic cost: |  |  |  |
Interest cost | $ | 242 |  | $ | 147 |  | $ | 522 |  | $ | 442 |
Expected return on plan assets | (370 | ) | (270 | ) | (798 | ) | (810 | )
Net amortization and deferral | 396 |  | 218 |  | 855 |  | 655 |
Settlement | $ | — |  | $ | — |  | $ | — |  | $ | 151 |
Net Periodic Pension Cost | $ | 268 |  | $ | 95 |  | $ | 579 |  | $ | 438 |

X
- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration