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Stock-Based Compensation Plans | 12 Months Ended
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Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation Plans |
| 8. | Stock-Based Compensation Plans.
The Company has two Stock Option Plans (the 2006 Stock Incentive Plan and the 2016 Equity Incentive Option Plan) under which options for shares of common stock were granted to directors, officers and key employees. The 2016 plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20% or 25% at the end of each year following the date of grant. When stock options are exercised the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 490,310 at December 31, 2018. The Company utilizes the Black-Scholes valuation model for estimating fair value of stock compensation for options awarded to officers and employees. Each grant is evaluated based upon assumptions at the time of grant. The assumptions were no dividend yield, expected volatility between 29% and 43%, risk-free interest rate of .6% to 2.9% and expected life of 3.0 to 7.0 years. The dividend yield of zero is based on the fact that the Company does not pay cash dividends and has no present intention to pay cash dividends. Expected volatility is estimated based on the Company’s historical experience over a period equivalent to the expected life in years. The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate at the date of grant with a term consistent with the expected life of the options granted. The expected life calculation is based on the observed and expected time to exercise options by the employees. As previously disclosed, Thompson S. Baker II resigned from his position as CEO and from the board of directors on March 13, 2017. In recognition of his outstanding service to the Company, the Board approved the vesting of all of Mr. Baker's outstanding FRP stock options, which expired 90 days following the termination of his employment. The vesting of Mr. Baker’s outstanding FRP options that were issued prior to the spin-off required Patriot to record modification stock compensation expense of $150,000. FRP reimbursed Patriot for this cost under the transition services agreement. The vesting of Mr. Baker’s outstanding FRP options that were issued subsequent to the spin-off required modified stock compensation expense of $41,000. On May 21, 2018, under the 2016 Equity Incentive Plan change-in-control clause, all unvested stock options held by the Company’s named executive officers became vested and fully exercisable. Included in stock compensation expense was $402,000 for the vesting of option grants from 2016 and 2017 due to the asset disposition. The Company recorded the following stock compensation expense in its consolidated statement of income (in thousands):
|  | Year ended |  | Year ended |
|  | December 31, |  | December 31, |
|  | 2018 |  | 2017 |
Stock option grants |  | $ | 607 |  |  |  | 268 |
Annual director stock award(s) |  |  | 1,055 |  |  |  | 445 |
|  | $ | 1,662 |  |  |  | 713 |
A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):
|  |  | Weighted |  | Weighted |  | Weighted
| Number |  | Average |  | Average |  | Average
| of |  | Exercise |  | Remaining |  | Grant Date
Options | Shares |  | Price |  | Term (yrs) |  | Fair Value(000's)
Outstanding at |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2017 |  | 236,385 |  |  | $ | 25.35 |  |  |  | 6.1 |  |  | $ | 2,440 |
Granted |  | 30,255 |  |  | $ | 43.45 |  |  |  |  |  |  | $ | 440 |
Modification |  | — |  |  | $ | 30.21 |  |  |  |  |  |  | $ | (137 | )
Exercised |  | (92,130 | ) |  | $ | 24.93 |  |  |  |  |  |  | $ | (842 | )
Outstanding at |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2017 |  | 174,510 |  |  | $ | 28.70 |  |  |  | 6.0 |  |  | $ | 1,901 |
Granted |  | 29,260 |  |  | $ | 45.97 |  |  |  |  |  |  | $ | 427 |
Exercised |  | (56,232 | ) |  | $ | 25.17 |  |  |  |  |  |  | $ | (546 | )
Outstanding at |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | 147,538 |  |  | $ | 33.48 |  |  |  | 6.7 |  |  | $ | 1,782 |
Exercisable at |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | 119,714 |  |  | $ | 31.59 |  |  |  | 6.1 |  |  | $ | 1,346 |
Vested during |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
twelve months ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | 46,030 |  |  |  |  |  |  |  |  |  |  | $ | 669 |
The following table summarizes information concerning stock options outstanding at December 31, 2018:
|  |  |  | Shares |  |  | Weighted |  |  | Weighted |
Range of Exercise |  |  |  | under |  |  | Average |  |  | Average |
Prices per Share |  |  |  | Option |  |  | Exercise Price |  | Remaining Life
Non-exercisable: |  |  |  |  |  |  |  |  |  |  |  |  |  |
$24.76 - $37.25 |  |  |  | 3,542 |  |  |  |  | 26.97 |  |  |  | 5.9 |
$37.26 - $45.97 |  |  |  | 24,282 |  |  |  |  | 43.74 |  |  |  | 9.5 |
|  |  |  | 27,824 |  |  |  | $ | 41.61 |  |  |  | 9.0 | Years
Exercisable: |  |  |  |  |  |  |  |  |  |  |  |  |  |
$16.71 - $24.75 |  |  |  | 14,100 |  |  |  |  | 16.72 |  |  |  | 2.9 |
$24.76 - $37.25 |  |  |  | 32,753 |  |  |  |  | 21.40 |  |  |  | 3.7 |
$37.26 - $45.97 |  |  |  | 72,861 |  |  |  |  | 39.04 |  |  |  | 7.8 |
|  |  |  | 119,714 |  |  |  | $ | 31.59 |  |  |  | 6.1 | Years
Total |  |  |  | 147,538 |  |  |  | $ | 33.48 |  |  |  | 6.7 | Years
The aggregate intrinsic value of exercisable in-the-money options was $1,727,000 and the aggregate intrinsic value of outstanding in-the-money options was $1,849,000 based on the market closing price of $46.01 on December 31, 2018 less exercise prices. The unrecognized compensation cost of options granted to FRP employees but not yet vested as of December 31, 2018 was $403,000, which is expected to be recognized over a weighted-average period of 4.3 years. Gains of $1,977,000 were realized by option holders during the year ended December 31, 2018. Patriot realized the tax benefits of $756,000 of these gains because these options were exercised by Patriot employees for options granted prior to the spin-off.

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- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5047-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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