XML 30 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 11
Stock-based Compensation

In 2007, the Company’s shareholders approved the Omnibus Incentive Stock Plan (“the Omnibus Plan”) to provide incentive opportunities for key employees and non-employee directors and to align the personal financial interests of such individuals with those of the Company’s shareholders. The Omnibus Plan permits the issuance of up to 968,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards.

The Company also continues to maintain its other stock-based incentive plans for the restricted common stock previously awarded and the options previously issued and outstanding. Restricted shares are amortized to expense over the three-year vesting period. Options currently vest over a period not to exceed seven years. The plans authorize the grant of awards in the form of options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code, options that do not qualify (non-statutory stock options) and grants of restricted shares of common stock. The Company issues shares out of treasury stock for restricted shares and option exercises. These plans have been superseded by the Omnibus Plan and accordingly, all remaining unissued shares under these plans have been cancelled.

All share and per share data have been restated to give effect to the 10% stock dividend issued on December 15, 2011.

Restricted Stock
Changes in restricted shares outstanding for the year ended December 31, 2011 were as follows:

      Shares       Fair Value
Balance at December 31, 2010 55,297 $      25.92
       Granted 28,611 33.05
       Vested (31,438 ) 25.84
Balance at December 31, 2011 52,470 $ 29.86
 

During 2010 and 2009, 16,664 and 42,500 shares, respectively, were granted with weighted average per share market values at date of grant of $28.10 in 2010 and $24.82 in 2009. The fair value of such shares, which is based on the market price on the date of grant, is amortized to expense over the three-year vesting period. Amortization of the restricted stock bonus awards totaled $787,000 for 2011, $848,000 for 2010 and $1,194,000 for 2009. As of December 31, 2011, the total unrecognized compensation expense related to non-vested restricted stock awards was $897,000 and the related weighted average period over which it is expected to be recognized is approximately 0.80 years.

Stock Options
Changes in options outstanding for the year ended December 31, 2011 were as follows:

Weighted Average
        Shares       Exercise Price
Balance at December 31, 2010 40,290 $      16.05
       Exercised (9,662 ) $ 13.22
Balance at December 31, 2011 30,628 $ 17.79
Exercisable at December 31, 2011 26,954 $ 17.65
 

The total intrinsic value of options exercised during 2011 and 2010 was $212,000 and $159,000, respectively. The average remaining contractual term for options outstanding as of December 31, 2011 was 0.84 years and the aggregate intrinsic value was $545,000. The average remaining contractual term for options exercisable as of December 31, 2011 was 0.81 years and the aggregate intrinsic value was $505,000.

A summary of the activity of the non-vested options during 2011 is shown below.

Weighted Average
        Shares       Grant Date Fair Value
Non-vested at December 31, 2010 13,684 $      2.67
       Vested (10,010 ) $ 2.67
Non-vested at December 31, 2011 3,674 $ 2.69
 

As of December 31, 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 0.80 years. For the year ended December 31, 2011, there were 3,444 non-qualified options exercised and 6,218 incentive stock options exercised. During 2011, the Company recognized stock option expense of $27,000.

Stock Appreciation Rights (SARs)
There were 82,508 SARs granted during the year ended December 31, 2011. The Company uses the Black-Scholes option-pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the $9.05 per share fair value.
     Year Ended December 31, 2011
Risk-free interest rate 2.70%  
Expected life 7 yrs.
Expected volatility 27.86%
Expected dividend yield 1.77%
 

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 options 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 options using average monthly closing market prices of the Company’s stock. The expected dividend yield is determined based on the Company’s current rate of annual dividends.

During 2011, the Company recognized SARs expense of $577,000. As of December 31, 2011, the total unrecognized compensation expense related to stock appreciation rights was $616,000, and the related weighted average period over which it is expected to be recognized is 0.60 years. Changes in SARs outstanding for the year ended December 31, 2011 were as follows:

      Shares       Weighted Average
Exercise Price
Balance at December 31, 2010 265,911

$     

 24.85
       Granted 82,508 $ 32.95
       Exercised (15,833 ) $ 24.81
Balance at December 31, 2011 332,586 $ 26.87
Exercisable at December 31, 2011 188,265 $ 24.97
 

The total intrinsic value of SARs exercised during 2011 and 2010 was $175,000 and $188,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2011 was 7.42 years and the aggregate intrinsic value was $3,166,000. The average remaining contractual term for SARs exercisable as of December 31, 2011 was 3.76 years and the aggregate intrinsic value was $2,149,000.