XML 82 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2012
Stock-Based Compensation [Abstract] |
STOCK-BASED COMPENSATION | NOTE 9 – STOCK-BASED COMPENSATION Stock-based compensation plans are used to provide directors and employees with an increased incentive to contribute to our long-term performance and growth, to align the interests of directors and employees with the interests of our shareholders through the opportunity for increased stock ownership and to attract and retain directors and employees. From 1997 through 2005, stock option grants were provided to directors and certain employees through several stock option plans, including the 1997 Employee Stock Option Plan, 2000 Employee Stock Option Plan, 2004 Employee Stock Option Plan and Independent Director Stock Option Plan. During 2006, 2007 and 2008, stock option and restricted stock grants were provided to certain employees through the Stock Incentive Plan of 2006. No stock option or restricted stock grants were made during 2009, 2010 or 2011. During 2012, restricted stock grants were provided to directors and certain employees through the Stock Incentive Plan of 2006. Under our 1997 Employee Stock Option Plan, 2000 Employee Stock Option Plan and 2004 Employee Stock Option Plan, stock options granted to employees were granted at the market price on the date of grant, generally fully vested after one year and expired ten years from the date of grant. Stock options granted to non-executive officers during 2005 vested about three weeks after being granted. Under our Independent Director Stock Option Plan, stock options granted to non-employee directors are at 125% of the market price on the date of grant, fully vested after five years and expire ten years from the date of grant. The Stock Incentive Plan of 2006 replaced all of our outstanding stock option plans for stock options not previously granted. Under the Stock Incentive Plan of 2006, incentive awards may include, but are not limited to, stock options, restricted stock, stock appreciation rights and stock awards. Incentive awards that are stock options or stock appreciation rights are granted with an exercise price not less than the closing price of our common stock on the date of grant, or for stock options granted in 2006 or 2007, the day before the date of grant, if the closing price was higher on the day before the date of grant. Price, vesting and expiration date parameters are determined by Mercantile’s Compensation Committee on a grant-by-grant basis. Generally, the stock options granted to employees during 2006, 2007 and 2008 fully vested after two years and expire after seven years. The restricted stock awards granted to certain employees during 2006, 2007 and 2008 fully vested after four years, while the restricted stock awards granted to directors and certain employees during 2012 fully vest after two years. No payments were required from employees for the restricted stock awards. At year-end 2012, there were approximately 366,000 shares authorized for future incentive awards. There was no unrecognized compensation cost related to unvested stock options granted under our various stock-based compensation plans, and $0.9 million of total unrecognized compensation cost related to unvested restricted stock granted under our Stock Incentive Plan of 2006 as of December 31, 2012, the latter of which is expected to be recognized over a weighted-average period of about one year. A summary of restricted stock activity is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Shares |  |  | Weighted Average Fair Value |  |  | Shares |  |  | Weighted Average Fair Value |  |  | Shares |  |  | Weighted Average Fair Value |
Nonvested at beginning of year |  |  | 38,650 |  |  | $ | 6.20 |  |  |  | 73,955 |  |  | $ | 11.02 |  |  |  | 91,233 |  |  | $ | 14.98 |
Granted |  |  | 66,100 |  |  |  | 14.30 |  |  |  | 0 |  |  |  | NA |  |  |  | 0 |  |  |  | NA |
Vested |  |  | (38,266 | ) |  |  | 6.20 |  |  |  | (28,533 | ) |  |  | 17.57 |  |  |  | (12,941 | ) |  |  | 37.76 |
Forfeited |  |  | (384 | ) |  |  | 6.20 |  |  |  | (6,772 | ) |  |  | 10.99 |  |  |  | (4,337 | ) |  |  | 14.62 |
Nonvested at end of year |  |  | 66,100 |  |  | $ | 14.30 |  |  |  | 38,650 |  |  | $ | 6.20 |  |  |  | 73,955 |  |  | $ | 11.02 |
A summary of stock option activity is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |
Outstanding at beginning of year |  |  | 214,903 |  |  | $ | 22.40 |  |  |  | 262,042 |  |  | $ | 21.18 |  |  |  | 293,462 |  |  | $ | 20.43 |
Granted |  |  | 0 |  |  |  | NA |  |  |  | 0 |  |  |  | NA |  |  |  | 0 |  |  |  | NA |
Exercised |  |  | (50,930 | ) |  |  | 10.83 |  |  |  | (8,800 | ) |  |  | 6.21 |  |  |  | 0 |  |  |  | NA |
Forfeited or expired |  |  | (11,077 | ) |  |  | 23.77 |  |  |  | (38,339 | ) |  |  | 17.80 |  |  |  | (31,420 | ) |  |  | 14.15 |
Outstanding at end of year |  |  | 152,896 |  |  | $ | 26.15 |  |  |  | 214,903 |  |  | $ | 22.40 |  |  |  | 262,042 |  |  | $ | 21.18 |
Options exercisable at year-end |  |  | 152,896 |  |  | $ | 26.15 |  |  |  | 212,643 |  |  | $ | 22.57 |  |  |  | 250,222 |  |  | $ | 21.86 |
The fair value of each stock option award is estimated on the date of grant using a closed option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities on our common stock. Historical data is used to estimate stock option expense and post-vesting termination behavior. The expected term of stock options granted is based on historical data and represents the period of time that stock options granted are expected to be outstanding, which takes into account that the stock options are not transferable. The risk-free interest rate for the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of the stock option grant. No stock option grants were made during 2010, 2011 or 2012. Options outstanding at year-end 2012 were as follows:
|  | Outstanding |  |  | Exercisable |
Range of Exercise Prices |  | Number |  |  | Weighted Average Remaining Contractual Life |  |  | Weighted Average Exercise Price |  |  | Number |  |  | Weighted Average Exercise Price |
$ 6.21 - $ 8.00 |  |  | 20,500 |  |  |  | 2.9 Years |  |  | $ | 6.21 |  |  |  | 20,500 |  |  | $ | 6.21 |
$16.01 - $20.00 |  |  | 37,485 |  |  |  | 1.9 Years |  |  |  | 17.74 |  |  |  | 37,485 |  |  |  | 17.74 |
$24.01 - $28.00 |  |  | 19,916 |  |  |  | 0.8 Years |  |  |  | 26.61 |  |  |  | 19,916 |  |  |  | 26.61 |
$32.01 - $36.00 |  |  | 56,105 |  |  |  | 2.3 Years |  |  |  | 34.75 |  |  |  | 56,105 |  |  |  | 34.75 |
$36.01 - $40.00 |  |  | 14,844 |  |  |  | 0.9 Years |  |  |  | 37.94 |  |  |  | 14,844 |  |  |  | 37.94 |
$40.01 - $44.00 |  |  | 4,046 |  |  |  | 1.8 Years |  |  |  | 40.28 |  |  |  | 4,046 |  |  |  | 40.28 |
Outstanding at year end |  |  | 152,896 |  |  |  | 1.9 Years |  |  | $ | 26.15 |  |  |  | 152,896 |  |  | $ | 26.15 |
Information related to options outstanding at year-end 2012, 2011 and 2010 is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Minimum exercise price |  | $ | 6.21 |  |  | $ | 6.21 |  |  | $ | 6.21 |
Maximum exercise price |  |  | 40.28 |  |  |  | 40.28 |  |  |  | 40.28 |
Average remaining option term |  |  | 1.9 Years |  |  |  | 2.8 Years |  |  |  | 3.5 Years |
Information related to stock option grants and exercises during 2012, 2011 and 2010 follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Aggregate intrinsic value of stock options exercised |  | $ | 307,000 |  |  | $ | 26,000 |  |  | $ | NA |
Cash received from stock option exercises |  |  | 228,000 |  |  |  | 55,000 |  |  |  | NA |
Tax benefit realized from stock option exercises |  |  | 0 |  |  |  | 0 |  |  |  | NA |
Weighted average per share fair value of stock options granted |  |  | NA |  |  |  | NA |  |  |  | NA |
The aggregate intrinsic value of all stock options outstanding and exercisable at December 31, 2012 was $0.2 million. Shares issued as a result of the exercise of stock option grants have been authorized and previously unissued shares.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration