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Stock-Based Compensation
9 Months Ended
Sep. 30, 2011
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] 
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note 9 – Stock-Based Compensation
 
In 2007, the Board and the Company’s shareholders approved the 2007 Omnibus Incentive Stock Plan (the “Omnibus Plan”). The Omnibus Plan permits the issuance of up to 880,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company issues shares out of treasury stock for these awards. During the nine months ended September 30, 2011, 26,017 restricted shares and 75,016 SARs were granted under the Omnibus Plan.

The Company also maintains its other stock-based incentive plans for the restricted common stock previously awarded and the options previously issued and still outstanding. These plans have been superseded by the Omnibus Plan and accordingly, any available restricted stock and stock option grants not yet issued have been cancelled.
 
Restricted Stock
Restricted shares are amortized to expense over the three-year vesting period. As of September 30, 2011, the total unrecognized compensation expense related to non-vested common stock was $1,095,000 and the related weighted-average period over which it is expected to be recognized is approximately 1.0 years.
 
Following is a summary of the activity of the restricted stock:
 
       Nine Months Ended
  September 30, 2011
  Shares      Fair Value
Balance at December 31, 2010    50,271  $     28.51
Granted 26,017   36.35
Vested (28,580)  28.43
Balance at September 30, 2011 47,708  $32.84

Stock Options
Stock options vest and expire over a period not to exceed seven years. As of September 30, 2011, the total unrecognized compensation expense related to non-vested stock options was $17,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.2 years. Following is a summary of the activity of the stock options during the nine-month period ended September 30, 2011:
 
               Weighted-      Average      Aggregate
     Average Remaining Intrinsic
     Exercise Contractual Value
  Shares Price Term Years (In thousands)
Outstanding at December 31, 2010   36,628  $     18.36 1.56 $     717
Exercised (6,584)  14.47     
Outstanding at September 30, 2011 30,044   19.21 1.03 $356
Exercisable at September 30, 2011 26,704  $19.03 1.00 $321

The total intrinsic value of options exercised was $156,000 and $60,000 for the nine-month periods ended September 30, 2011 and 2010, respectively. Following is a summary of the activity of the non-vested stock options during the nine-month period ended September 30, 2011:
 
               Weighted-Average
  Shares Grant Date Fair Value
Non-vested at December 31, 2010   12,440  $2.94
Vested (9,100)  2.93
Non-vested at September 30, 2011 3,340  $2.95

SARs
SARs vest over a three-year period, with one-third of the shares vesting and becoming exercisable each year on the anniversary date of the grant, and they expire 10 years from the original grant date. As of September 30, 2011, the total unrecognized compensation expense was $759,000 and the related weighted-average period over which it is expected to be recognized is 1.1 years. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2011:
 
    Weighted- Average Aggregate
    Average Remaining Intrinsic
    Exercise Contractual Value
       Shares      Price      Term Years      (In thousands)
Outstanding at December 31, 2010 241,755 $     27.34 7.38 $     2,562
Granted 75,016  36.24     
Exercised (14,396) 12.20     
Outstanding at September 30, 2011 302,375 $29.55 7.68 $452
Exercisable at September 30, 2011 171,158 $27.47 3.91 $613

 
 

Following is a summary of the activity of the non-vested SARs during the nine-month period ended September 30, 2011:
 
               Weighted-Average
  Shares Grant Date Fair Value
Non-vested at December 31, 2010 141,201  $     27.18
Granted 75,016   36.24
Vested (85,000)  27.36
Non-vested at September 30, 2011 131,217  $32.28

The Company uses the Black-Scholes pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the per-share fair value of SARs granted:
 
 Nine Months Ended
 September 30,
 2011 2010
Risk free interest rate2.70%      3.33%
Expected life7 yrs. 7 yrs.
Expected volatility   27.86%   30.00%
Expected dividend yield1.77% 1.86%

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield for the period equal to the expected life of the SARs at the time of the grant. The expected life was derived using the historical exercise activity. The Company uses historical volatility for a period equal to the expected life of the rights using average monthly closing market prices of the Company’s stock as reported on The Nasdaq Global Market. The expected dividend yield is based on the Company’s current rate of annual dividends.