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STOCK-BASED COMPENSATION PLANS | 12 Months Ended
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Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
18. | STOCK-BASED COMPENSATION PLANS
At December 31, 2012, the Company had three stock-based compensation plans: the 1997 Stock Option Plan, the 2005 Equity Incentive Plan and the 2011 Incentive Plan (collectively, “the Plans”). Under the Plans, options to purchase common stock were granted to officers and key employees at exercise prices not less than the fair market value of the Company’s common stock on the date of the grant. The Company issues new common stock to satisfy stock option exercises and the issuance of restricted stock awards. Awards are no longer granted under the 1997 and 2005 plans. Stock options and restricted stock awards were granted on December 1, 2012, 2011 and 2010. Under the 2011 Incentive Plan, stock options and restricted stock awards are valued at fair market value based on the Company’s closing stock price on the date of grant. Under the 1997 and 2005 plans, stock options were valued at fair market value based on the average of the Company’s high and low trade prices on the date of grant. The stock options and restricted stock awards granted in 2012, 2011 and 2010 vest ratably over four years. Stock options granted in 2012 and 2011 expire six years from the date of grant. Stock options granted between 2006 and 2010 expire five years from the date of grant. Stock options granted prior to 2006 expire ten years from the grant date, with the exception of certain incentive stock options, which expired five years from the date of grant. As of December 31, 2012, there were 472,000 shares remaining available for stock-based awards under the 2011 Incentive Plan. The Company expenses stock-based compensation in accordance with ASC 718 using the modified prospective method. The Company’s policy is to estimate the fair market value of each option award granted on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the table below. The Company estimates the fair value of each restricted stock award based on the fair market value of the Company’s stock price on the grant date. The resulting compensation cost for both the options and restricted stock is amortized on a straight-line basis over the vesting period of the respective awards. In accordance with ASC 718, stock-based compensation expense was recognized in the 2012, 2011 and 2010 consolidated financial statements for stock options and restricted stock awards granted since 2007. An estimate of forfeitures, based on historical data, was included in the calculation of stock-based compensation, and the estimate was adjusted quarterly to the extent that actual forfeitures differ, or are expected to materially differ, from such estimates. The effect of applying the expense recognition provisions of ASC 718 in 2012, 2011 and 2010 decreased Earnings Before Provision For Income Taxes by approximately $1,201,000, $1,224,000 and $1,128,000, respectively. As of December 31, 2012, there was $2.2 million of total unrecognized compensation cost related to non-vested stock options granted in the years 2009 through 2012 which is expected to be recognized over the weighted-average remaining vesting period of 2.9 years. As of December 31, 2012, there was $987,000 of total unrecognized compensation cost related to non-vested restricted stock awards granted in the years 2009 through 2012 which is expected to be recognized over the weighted-average remaining vesting period of 3.1 years. The following weighted-average assumptions were used to determine compensation expense related to stock options in 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Risk-free interest rate |  |  | 0.51 | % |  |  | 0.66 | % |  |  | 1.00 | %
Expected dividend yield |  |  | 2.89 | % |  |  | 2.65 | % |  |  | 2.56 | %
Expected term |  |  | 4.3 years |  |  |  | 4.3 years |  |  |  | 3.5 years |
Expected volatility |  |  | 26.4 | % |  |  | 29.6 | % |  |  | 33.0 | %
The risk-free interest rate is based on U.S. Treasury bonds with a remaining term equal to the expected term of the award. The expected dividend yield is based on the Company’s expected annual dividend as a percentage of the market value of the Company’s common stock in the year of grant. The expected term of the stock options is determined using historical experience. The expected volatility is based upon historical stock prices over the most recent period equal to the expected term of the award. The following tables summarize stock option activity under the Company’s plans: Stock Options
|  | Years ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Stock Options |  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |  |  | Shares |  |  | Weighted Average Exercise Price |
Outstanding at beginning of year |  |  | 1,307,488 |  |  | $ | 21.76 |  |  |  | 1,269,426 |  |  | $ | 20.25 |  |  |  | 1,195,276 |  |  | $ | 18.68 |
Granted |  |  | 253,400 |  |  |  | 23.53 |  |  |  | 235,700 |  |  |  | 24.21 |  |  |  | 192,000 |  |  |  | 24.49 |
Exercised |  |  | (174,646 | ) |  |  | 13.17 |  |  |  | (122,463 | ) |  |  | 8.95 |  |  |  | (113,500 | ) |  |  | 10.59 |
Forfeited or expired |  |  | (120,450 | ) |  |  | 27.37 |  |  |  | (75,175 | ) |  |  | 24.93 |  |  |  | (4,350 | ) |  |  | 26.90 |
Outstanding at end of year |  |  | 1,265,792 |  |  | $ | 22.76 |  |  |  | 1,307,488 |  |  | $ | 21.76 |  |  |  | 1,269,426 |  |  | $ | 20.25 |
Exercisable at end of year |  |  | 706,863 |  |  | $ | 21.89 |  |  |  | 821,510 |  |  | $ | 20.16 |  |  |  | 848,200 |  |  | $ | 17.81 |
Weighted average fair market value of options granted |  | $ | 3.68 |  |  |  |  |  |  | $ | 4.51 |  |  |  |  |  |  | $ | 4.97 |  |  |  |  |
|  | Weighted Average Remaining Contractual Life (in Years) |  |  | Aggregate Intrinsic Value |
Outstanding - December 31, 2012 |  | 3.1 |  |  | $ | 2,022,000 |
Exercisable - December 31, 2012 |  | 1.8 |  |  | $ | 2,010,000 |
The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company’s stock on December 31, 2012 of $23.36 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options. Non-vested Stock Options
Non-vested Stock Options |  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Fair Value |
Non-vested - December 31, 2009 |  |  | 349,325 |  |  | $ | 25.93 |  |  | $ | 5.00 |
Granted |  |  | 192,000 |  |  |  | 24.49 |  |  |  | 4.97 |
Vested |  |  | (116,999 | ) |  |  | 26.33 |  |  |  | 5.17 |
Forfeited |  |  | (3,100 | ) |  |  | 26.84 |  |  |  | 5.00 |
Non-vested - December 31, 2010 |  |  | 421,226 |  |  | $ | 25.16 |  |  | $ | 4.94 |
Granted |  |  | 235,700 |  |  |  | 24.21 |  |  |  | 4.51 |
Vested |  |  | (145,298 | ) |  |  | 25.86 |  |  |  | 5.05 |
Forfeited |  |  | (25,650 | ) |  |  | 25.62 |  |  |  | 4.91 |
Non-vested - December 31, 2011 |  |  | 485,978 |  |  | $ | 24.46 |  |  | $ | 4.70 |
Granted |  |  | 253,400 |  |  |  | 23.53 |  |  |  | 3.68 |
Vested |  |  | (173,824 | ) |  |  | 25.05 |  |  |  | 4.73 |
Forfeited |  |  | (6,625 | ) |  |  | 24.26 |  |  |  | 4.60 |
Non-vested - December 31, 2012 |  |  | 558,929 |  |  | $ | 23.86 |  |  | $ | 4.23 |
The following table summarizes information about outstanding and exercisable stock options at December 31, 2012:
|  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  | Number of Options Outstanding |  |  | Weighted Average Remaining Contractual Life (in Years) |  |  | Weighted Average Exercise Price |  |  | Number of Options Exercisable |  |  | Weighted Average Exercise Price |
$15.46 to $18.03 |  |  | 318,292 |  |  |  | 1.22 |  |  | $ | 17.15 |  |  |  | 318,292 |  |  | $ | 17.15 |
$23.09 to $23.53 |  |  | 423,400 |  |  |  | 4.31 |  |  |  | 23.35 |  |  |  | 127,949 |  |  |  | 23.09 |
$24.21 to $30.67 |  |  | 524,100 |  |  |  | 3.37 |  |  |  | 25.69 |  |  |  | 260,622 |  |  |  | 27.09 |
|  |  | 1,265,792 |  |  |  | 3.14 |  |  | $ | 22.76 |  |  |  | 706,863 |  |  | $ | 21.89 |
The following table summarizes stock option activity for the years ended December 31:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Total intrinsic value of stock options exercised |  | $ | 1,704 |  |  | $ | 1,299 |  |  | $ | 1,443 |
Cash received from stock option exercises |  | $ | 2,300 |  |  | $ | 1,096 |  |  | $ | 1,202 |
Income tax benefit from the exercise of stock options |  | $ | 664 |  |  | $ | 507 |  |  | $ | 563 |
Total fair value of stock options vested |  | $ | 821 |  |  | $ | 733 |  |  | $ | 604 |
Restricted Stock The following table summarizes restricted stock award activity during the years ended December 31, 2010, 2011 and 2012:
Non-vested Restricted Stock |  | Shares of Restricted Stock |  |  | Weighted Average Grant Date Fair Value |
Non-vested - December 31, 2009 |  |  | 46,670 |  |  | $ | 25.56 |
Issued |  |  | 12,800 |  |  |  | 24.49 |
Vested |  |  | (22,372 | ) |  |  | 25.40 |
Forfeited |  |  | (1,650 | ) |  |  | 25.00 |
Non-vested - December 31, 2010 |  |  | 35,448 |  |  | $ | 24.79 |
Issued |  |  | 19,300 |  |  |  | 24.21 |
Vested |  |  | (16,748 | ) |  |  | 25.91 |
Forfeited |  |  | - |  |  |  | - |
Non-vested - December 31, 2011 |  |  | 38,000 |  |  |  | 24.47 |
Issued |  |  | 19,600 |  |  |  | 23.53 |
Vested |  |  | (15,025 | ) |  |  | 24.97 |
Forfeited |  |  | - |  |  |  | - |
Non-vested - December 31, 2012 |  |  | 42,575 |  |  | $ | 23.87 |
At December 31, 2012, the Company expected 42,575 of shares of restricted stock to vest over a weighted-average remaining contractual term of 3.10 years. These shares had an aggregate intrinsic value of $995,000 at December 31, 2012. The aggregate intrinsic value was calculated using the market value of the Company’s stock on December 31, 2012 of $23.36 multiplied by the number of non-vested restricted shares outstanding. The income tax benefit from the vesting of restricted stock for the years ended December 31 was approximately $137,000 in 2012, $158,000 in 2011 and $214,000 in 2010.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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