Share-Based Compensation

12 Months Ended

Dec. 31, 2016

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

The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of December 31, 2016, 274,581 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from its treasury stock for shares delivered under the Plan.

Restricted Stock

Under the Plan, the Corporation may grant restricted stock to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, with the exception of restricted stock units, which do not have voting rights and are provided dividend equivalents, restricted stock participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted share awards, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income.

Restricted stock activity for the year ended December 31, 2016, 2015 and 2014 was as follows:



	For the Year Ended December 31,
	2016				2015				2014
	Number of Restricted Shares		Weighted Average Grant-Date Fair Value		Number of Restricted Shares		Weighted Average Grant-Date Fair Value		Number of Restricted Shares		Weighted Average Grant-Date Fair Value
Nonvested balance at beginning of year	135,471		$	20.13	154,998		$	16.97	169,418		$	11.55
Granted	60,415		22.74		53,790		22.52		64,522		22.49
Vested	(56,090	)	18.71		(64,874	)	15.23		(78,942	)	9.86
Forfeited	(23,551	)	20.90		(8,443	)	15.03		—		—
Nonvested balance as of end of year	116,245		21.13		135,471		20.13		154,998		16.97

As of December 31, 2016, the Corporation had $2.2 million of deferred unvested compensation expense, which the Corporation expects to recognize over a weighted-average period of approximately 2.8 years.

For the years ended December 31, 2016, 2015 and 2014, share-based compensation expense related to restricted stock included in the Consolidated Statements of Income was as follows:



	For the Year Ended December 31,
	2016		2015		2014
	(In Thousands)
Share-based compensation expense	$	994	$	1,063	$	887

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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