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STOCK-BASED COMPENSATION PLANS | 12 Months Ended
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Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ## 17. STOCK-BASED COMPENSATION PLANS At December 31, 2017, the Company had three stock-based compensation plans: the 2011 Incentive Plan, the 2014 Incentive Plan, and the 2017 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. The 2017 Incentive Plan was approved by the Company’s shareholders on May 9, 2017. Awards are no longer granted under the 2011 and 2014 plans. Stock options and restricted stock awards were granted on August 25th in each of the years 2017, 2016 and 2015. Under the Plans, 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. Stock options granted in 2017 vest ratably over five years and expire ten years from the grant date. Stock options granted in 2016 and 2015 vest ratably over four years and expire six years from the grant date. Restricted stock granted in 2017, 2016, and 2015 vests ratably over four years. As of December 31, 2017, there were approximately 1.3 million shares remaining available for stock-based awards under the 2017 Incentive Plan. In accordance with ASC 718, stock-based compensation expense was recognized in the 2017, 2016 and 2015 consolidated financial statements for stock options and restricted stock awards granted since 2011. An estimate of forfeitures, based on historical data, was included in the calculation of stock-based compensation. The effect of applying the expense recognition provisions of ASC 718 decreased Earnings before Provision for Income Taxes by $1,622,000 in 2017 and $1,559,000 in each of the years 2016 and 2015. As of December 31, 2017, there was $1.8 million of total unrecognized compensation cost related to non-vested stock options granted in the years 2014 through 2017 which is expected to be recognized over the weighted-average remaining vesting period of 2.7 years. As of December 31, 2017, there was $1.6 million of total unrecognized compensation cost related to non-vested restricted stock awards granted in the years 2014 through 2017 which is expected to be recognized over the weighted-average remaining vesting period of 2.9 years. The following weighted-average assumptions were used to determine compensation expense related to stock options in 2017, 2016 and 2015:
|  | 2017 |  | 2016 |  | 2015
Risk-free interest rate |  |  | 2.04 | % |  |  | 1.09 | % |  |  | 1.36 | %
Expected dividend yield |  |  | 3.15 | % |  |  | 3.29 | % |  |  | 3.12 | %
Expected term |  |  | 8.0 |  |  |  | 4.3 years |  |  |  | 4.3 years |
Expected volatility |  |  | 19.7 | % |  |  | 21.3 | % |  |  | 21.6 | %
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,
|  | 2017 |  | 2016 |  | 2015
Stock Options |  | Shares |  | Weighted Average Exercise Price |  | Shares |  | Weighted Average Exercise Price |  | Shares |  | Weighted Average Exercise Price
Outstanding at beginning of year |  |  | 1,486,257 |  |  | $ | 26.13 |  |  |  | 1,351,826 |  |  | $ | 26.09 |  |  |  | 1,355,416 |  |  | $ | 25.36 |
Granted |  |  | 211,200 |  |  |  | 27.94 |  |  |  | 277,800 |  |  |  | 25.51 |  |  |  | 299,700 |  |  |  | 25.64 |
Exercised |  |  | (174,989 | ) |  |  | 24.48 |  |  |  | (123,294 | ) |  |  | 24.28 |  |  |  | (279,090 | ) |  |  | 22.02 |
Forfeited or expired |  |  | (19,975 | ) |  |  | 26.53 |  |  |  | (20,075 | ) |  |  | 26.52 |  |  |  | (24,200 | ) |  |  | 26.58 |
Outstanding at end of year |  |  | 1,502,493 |  |  | $ | 26.57 |  |  |  | 1,486,257 |  |  | $ | 26.13 |  |  |  | 1,351,826 |  |  | $ | 26.09 |
Exercisable at end of year |  |  | 877,131 |  |  | $ | 26.59 |  |  |  | 762,132 |  |  | $ | 26.07 |  |  |  | 594,906 |  |  | $ | 25.55 |
Weighted average fair market value of options granted |  | $ | 4.05 |  |  |  |  |  |  | $ | 3.05 |  |  |  |  |  |  | $ | 3.30 |  |  |  |  |
|  | Weighted Average Remaining Contractual Life (in Years) |  | Aggregate Intrinsic Value
Outstanding – December 31, 2017 |  |  | 3.8 |  |  | $ | 4,733,000 |
Exercisable – December 31, 2017 |  |  | 2.4 |  |  | $ | 2,746,000 |
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 29, 2017 of $29.72 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, 2014 |  |  | 751,582 |  |  | $ | 26.74 |  |  | $ | 3.12 |
Granted |  |  | 299,700 |  |  |  | 25.64 |  |  |  | 3.30 |
Vested |  |  | (275,187 | ) |  |  | 26.14 |  |  |  | 3.36 |
Forfeited |  |  | (19,175 | ) |  |  | 26.59 |  |  |  | 3.14 |
Non-vested – December 31, 2015 |  |  | 756,920 |  |  | $ | 26.53 |  |  | $ | 3.10 |
Granted |  |  | 277,800 |  |  |  | 25.51 |  |  |  | 3.05 |
Vested |  |  | (293,720 | ) |  |  | 26.39 |  |  |  | 3.13 |
Forfeited |  |  | (16,875 | ) |  |  | 26.37 |  |  |  | 3.10 |
Non-vested – December 31, 2016 |  |  | 724,125 |  |  | $ | 26.20 |  |  | $ | 3.07 |
Granted |  |  | 211,200 |  |  |  | 27.94 |  |  |  | 4.05 |
Vested |  |  | (296,638 | ) |  |  | 26.71 |  |  |  | 3.01 |
Forfeited |  |  | (13,325 | ) |  |  | 26.16 |  |  |  | 3.12 |
Non-vested – December 31, 2017 |  |  | 625,362 |  |  | $ | 26.55 |  |  | $ | 3.43 |
The following table summarizes information about outstanding and exercisable stock options at December 31, 2017:
|  | 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
$23.53 to $25.86 |  |  | 689,993 |  |  |  | 3.4 |  |  | $ | 25.11 |  |  |  | 350,843 |  |  | $ | 24.67 |
$27.04 to $28.50 |  |  | 812,500 |  |  |  | 4.2 |  |  | $ | 27.81 |  |  |  | 526,288 |  |  | $ | 27.87 |
|  |  | 1,502,493 |  |  |  | 3.8 |  |  | $ | 26.57 |  |  |  | 877,131 |  |  | $ | 26.59 |
The following table summarizes stock option activity for the years ended December 31:
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Total intrinsic value of stock options exercised |  | $ | 618 |  |  | $ | 455 |  |  | $ | 1,705 |
Cash received from stock option exercises |  | $ | 4,284 |  |  | $ | 2,994 |  |  | $ | 6,144 |
Income tax benefit from the exercise of stock options |  | $ | 188 |  |  | $ | 178 |  |  | $ | 665 |
Total fair value of stock options vested |  | $ | 892 |  |  | $ | 919 |  |  | $ | 925 |
## Restricted Stock The following table summarizes restricted stock award activity during the years ended December 31, 2015, 2016 and 2017:
Non-vested Restricted Stock |  | Shares of Restricted Stock |  | Weighted Average Grant Date Fair Value
Non-vested – December 31, 2014 |  |  | 54,050 |  |  | $ | 26.58 |
Issued |  |  | 21,900 |  |  |  | 25.64 |
Vested |  |  | (20,700 | ) |  |  | 25.94 |
Non-vested – December 31, 2015 |  |  | 55,250 |  |  |  | 26.45 |
Issued |  |  | 26,900 |  |  |  | 25.51 |
Vested |  |  | (22,025 | ) |  |  | 26.26 |
Forfeited |  |  | (1,625 | ) |  |  | 26.30 |
Non-vested – December 31, 2016 |  |  | 58,500 |  |  | $ | 26.09 |
Issued |  |  | 30,800 |  |  |  | 27.94 |
Vested |  |  | (23,250 | ) |  |  | 26.54 |
Non-vested – December 31, 2017 |  |  | 66,050 |  |  | $ | 26.79 |
At December 31, 2017, the Company expected 66,050 shares of restricted stock to vest over a weighted-average remaining contractual term of 2.8 years. These shares had an aggregate intrinsic value of $2.0 million at December 31, 2017. The aggregate intrinsic value was calculated using the market value of the Company’s stock on December 29, 2017 of $29.72 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 $167,000 in 2017, $230,000 in 2016, and $221,000 in 2015.

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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 FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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