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Share-Based Compensation | 12 Months Ended
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Dec. 31, 2012
Share-Based Compensation [Abstract] |
Share-Based Compensation | Note 20 — Share-Based Compensation Under Horizon’s 1997 Stock Option and Stock Appreciation Right Plan (1997 Plan), Horizon may grant certain officers and employees stock option awards or stock appreciation rights which vest and become fully exercisable at the end of five years of continued employment. SARs entitle eligible employees to receive cash, stock or a combination of cash and stock totaling the excess, on the date of exercise, of the fair market value of the shares of common stock covered by the option over the option exercise price. The underlying stock options are deemed to have been cancelled upon exercise of the SARs. There were no options outstanding, granted, exercised or exercisable in the plan at December 31, 2012. The total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010, was $0, $32,000 and $210,000. On January 21, 2003, the Board of Directors adopted the Horizon Bancorp 2003 Omnibus Equity Incentive Plan (2003 Plan), which was approved by stockholders on May 8, 2003. Under the 2003 Plan, Horizon may issue up to 337,500 common shares, plus the number of shares that are tendered to or withheld by Horizon in connection with the exercise of options plus that number of shares that are purchased by Horizon with the cash proceeds received upon option exercises. The 2003 Plan limits the number of shares available to 337,500 for incentive stock options and to 168,750 for the grant of non-option awards. The shares available for issuance under the 2003 Plan may be divided among the various types of awards and among the participants as the Compensation Committee (Committee) determines. The Committee is authorized to grant any type of award to a participant that is consistent with the provisions of the 2003 Plan. Awards may consist of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance units, performance shares or any combination of these awards. The Committee determines the provisions, terms and conditions of each award. The restricted shares vest over a period of time established by the committee at the time of each grant. Holders of restricted shares receive dividends and may vote the shares. The restricted shares are recorded at fair market value (on the date granted) as a separate component of stockholders’ equity. The cost of these shares is being amortized against earnings using the straight-line method over the vesting period. The options shares granted under the 2003 plan vest at a rate of 20% per year. The restricted shares granted under the 2003 Plan vest at the end of each grant’s vesting period. On March 8, 2010, the Board of Directors adopted, and was approved by stockholders on May 6, 2010, an amendment to the 2003 Omnibus Equity Incentive Plan making an additional 393,750 common shares available for issuance. The fair value of options granted is estimated on the date of the grant using an option-pricing model with the following weighted-average assumptions:
December 31 |  | 2012 |  |  | 2011 |  |  | 2010 |
Dividend yields |  |  | 2.56 | % |  |  | 2.77 | % |  |  | 2.99 | %
Volatility factors of expected market price of common stock |  |  | 29.47 | % |  |  | 29.89 | % |  |  | 30.97 | %
Risk-free interest rates |  |  | 1.84 | % |  |  | 1.91 | % |  |  | 2.86 | %
Expected life of options |  |  | 8 years |  |  |  | 8 years |  |  |  | 8 years |
A summary of option activity under the 2003 Plan as of December 31, 2012, and changes during the year then ended, is presented below:
|  | Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
Outstanding, beginning of year |  |  | 101,250 |  |  | $ | 10.73 |  |  |  |  |  |  |  |  |
Granted |  |  | 21,698 |  |  |  | 12.94 |  |  |  |  |  |  |  |  |
Exercised |  |  | (18,000 | ) |  |  | 11.04 |  |  |  |  |  |  |  |  |
Forfeited |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Outstanding, end of year |  |  | 104,948 |  |  |  | 11.14 |  |  |  | 6.34 |  |  | $ | 893,159 |
Exercisable, end of year |  |  | 54,450 |  |  |  | 10.99 |  |  |  | 4.50 |  |  |  | 471,333 |
The weighted average grant-date fair value of options granted during the year 2012, 2011 and 2010 was $3.25, $2.82 and $2.63. A summary of the status of Horizon’s non-vested, restricted shares as of December 31, 2012 is presented below:
|  | Shares |  |  | Weighted Average Grant Date Fair Value |
Non-vested beginning of year |  |  | 29,250 |  |  | $ | 12.88 |
Vested |  |  | — |  |  |  | — |
Granted |  |  | 46,753 |  |  |  | 13.70 |
Forfeited |  |  | — |  |  |  | — |
Non-vested, end of year |  |  | 76,003 |  |  |  | 13.38 |
Grants vest at the end of four or five years of continuous employment. Total compensation cost recognized in the income statement for option-based payment arrangements during 2012 was $33,000 and the related tax benefit recognized was approximately $13,000. Total compensation cost recognized in the income statement for option-based payment arrangements during 2011 and 2010 was $35,000 and $30,000 and the related tax benefit recognized was $14,000 and $12,000, respectively. Total compensation cost recognized in the income statement for restricted share based payment arrangements during 2012, 2011 and 2010 was $187,000, $100,000, and $68,000. The recognized tax benefit related thereto was approximately $75,000, $40,000, and $27,000 for the years ended December 31, 2012, 2011 and 2010. Cash received from option exercise under all share-based payment arrangements for the years ended December 31, 2012, 2011 and 2010 was $199,000, $56,000, and $120,000. The actual tax benefit realized for the tax deductions from option exercise of the share-based payment arrangements totaled $27,000, $8,000, and $77,000, for the years ended December 31, 2012, 2011 and 2010. As of December 31, 2012, there was $759,000 of total unrecognized compensation cost related to all non-vested share-based compensation arrangements granted under all of the plans. That cost is expected to be recognized over a weighted-average period of 2.9 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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