XML 62 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 8 – Stock-Based Compensation

The 2007 Omnibus Incentive Stock Plan (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 (“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, 2012, 25,805 restricted shares and 83,968 SARs were granted under the Omnibus Plan.

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 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 These plans have been superseded by the Omnibus Plan and accordingly, any available restricted stock and stock option grants not yet issued have been cancelled.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, 2012, the total unrecognized compensation expense related to non-vested common stock was $1,270,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.1 years.

Following is a summary of the activity of the restricted stock:

Nine Months Ended
September 30, 2012
      Shares       Fair Value
Balance at December 31, 2011 52,470 $      29.86
Granted   25,805 $ 37.43
Vested (28,154 )   $ 28.02
Balance at September 30, 2012 50,121 $ 34.79
 

Stock Options
Stock options vest and expire over a period not to exceed seven years. As of September 30, 2012, the total unrecognized compensation expense related to non-vested stock options was $4,000, and the related weighted-average period over which it is expected to be recognized is approximately .3 years. Following is a summary of the activity of the stock options during the nine-month period ended September 30, 2012:

Weighted- Average Aggregate
Average Remaining Intrinsic
Exercise Contractual Value
      Shares       Price       Term Years       (In thousands)
Outstanding at December 31, 2011 30,628 $      17.79 .84 $ 545
Exercised   13,192   $ 16.47  
Outstanding at September 30, 2012      17,436 $ 18.79   .26 $ 404
Exercisable at September 30, 2012 17,436 $ 18.79 .26 $ 404
 

The total intrinsic value of options exercised was $283,000 and $156,000 for the nine-month periods ended September 30, 2012 and 2011, respectively. Following is a summary of the activity of the non-vested stock options during the nine-month period ended September 30, 2012:

Weighted- Average
      Shares       Grant Date Fair Value
Non-vested at December 31, 2011 3,674 $ 2.69
Vested     (3,674 )   $ 2.69
Non-vested at September 30, 2012 —   $ 0.00
 
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, 2012, the total unrecognized compensation expense was $3,645,000, and the related weighted-average period over which it is expected to be recognized is 1.7 years. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2012:
Weighted- Average Aggregate
Average Remaining Intrinsic
Exercise Contractual Value
      Shares       Price       Term Years       (In thousands)
Outstanding at December 31, 2011 332,586 $ 26.87 7.42 $ 3,166
Granted   83,968 $ 36.92
Exercised (49,344 ) $ 24.64        
Outstanding at September 30, 2012 367,210     $          29.47 7.39 4,590
Exercisable at September 30, 2012 219,679 $ 25.83 6.33 3,545
 

Following is a summary of the activity of the non-vested SARs during the nine-month period ended September 30, 2012:

Weighted-Average
      Shares       Grant Date Fair Value
Non-vested at December 31, 2011 144,321 $ 29.35
Granted 83,968 $ 36.92
Vested   (80,758 )   $ 27.49
Non-vested at September 30, 2012 147,531 $ 34.89
 

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,
      2012       2011
Risk-free interest rate   1.38 % 2.70 %
Expected life 7 yrs. 7 yrs.
Expected volatility   29.39 %    27.86 %
Expected dividend yield 1.84 % 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 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.