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Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Note 8 – Stock-Based Compensation

The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) permits the issuance of up to 1,500,000 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 may issue shares out of treasury stock for these awards. During the three months ended March 31, 2017, 15,356 restricted shares, 23,038 performance-based restricted shares, and 0 SARs were granted under the Omnibus Plan.

Restricted Stock
Restricted shares granted prior to April 16, 2013 are amortized to expense over a three-year vesting period. Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over a three-year vesting period whereas restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payments for retainer fees which are expensed in the period earned. As of March 31, 2017, the total unrecognized compensation expense related to non-vested restricted shares was $2,253,000, 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 restricted stock:

		Three Months Ended
		March 31, 2017
		Shares			Fair Value
Balance at December 31, 2016		73,840			$	51.03
Granted		15,356			$	65.12
Vested		(24,553	)		$	52.51
Balance at March 31, 2017		64,643			$	53.81

Performance-Based Restricted Stock
On February 2, 2017, the Company granted three-year performance based restricted stock (“PBRS”) awards which are contingent upon the achievement of pre-established financial goals over the period from January 1, 2017 through December 31, 2019. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The target number of PBRS shares granted was 23,038 with a grant date fair value of $65.12 per share. The 2017 expense related to this grant is currently estimated to be $458,000 and is based on the grant date fair value and the achievement of 100% of the target financial goals. The estimated expense for 2017 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals.

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 March 31, 2017, all compensation expense has been recognized. Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2017:

					Weighted-			Average		Aggregate
					Average			Remaining		Intrinsic
					Exercise			Contractual		Value
		Shares			Price			Term Years		*(In thousands)*
Outstanding at December 31, 2016		237,468			$	38.22		5.73		$	3,201
Exercised		(13,229	)		$	43.34
Outstanding at March 31, 2017		224,239			$	37.92		4.94		$	6,320
Exercisable at March 31, 2017		224,239			$	37.92		4.94		$	6,320

Following is a summary of the activity of the non-vested SARs during the three-month period ended March 31, 2017:

					Weighted-Average
		Shares			Grant Date Fair Value
Non-vested at December 31, 2016		12,164			$	61.64
Vested		(12,164	)		$	61.64
Non-vested at March 31, 2017		—				—