Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

NOTE 7. — SHAREHOLDERS’ EQUITY

A summary of the changes in shareholders’ equity for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands, except per share amounts):

	COMMON STOCK				ADDITIONAL PAID-IN		DIVIDENDS PAID IN EXCESS
	SHARES		AMOUNT		CAPITAL		OF EARNINGS			TOTAL
BALANCE, DECEMBER 31, 2013		33,397	$	334	$	462,397	$	(47,640	)	$	415,091
Net earnings								23,418			23,418
Dividends declared — $0.960 per share								(32,402	)		(32,402	)
Stock-based compensation		20		—		917		—			917
BALANCE, DECEMBER 31, 2014		33,417	$	334	$	463,314	$	(56,624	)	$	407,024
Net earnings								37,410			37,410
Dividends declared — $1.15 per share								(38,897	)		(38,897	)
Stock-based compensation		5		—		1,024		—			1,024
BALANCE, DECEMBER 31, 2015		33,422	$	334	$	464,338	$	(58,111	)	$	406,561
Net earnings								38,411			38,411
Dividends declared — $1.03 per share								(35,385	)		(35,385	)
Shares issued pursuant to ATM Program, net		653		7		14,879		—			14,886
Shares issued pursuant to stock dividends		256		3		4,409		—			4,412
Shares issued pursuant to dividend reinvestment		43		—		897		—			897
Stock-based compensation		19		—		1,136		—			1,136
BALANCE, DECEMBER 31, 2016		34,393	$	344	$	485,659	$	(55,085	)	$	430,918

We are authorized to issue 20,000,000 shares of preferred stock, par value $.01 per share, of which none were issued as of December 31, 2016 or December 31, 2015.

ATM Program

In June 2016, we established an at-the-market equity offering program (the “ATM Program”), pursuant to which we may issue and sell shares of our common stock with an aggregate sales price of up to $125,000,000 through a consortium of banks acting as agents. Sales of the shares of common stock may be made, as needed, from time to time in at-the-market offerings as defined in Rule 415 of the Securities Act of 1933, including by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or as otherwise agreed to with the applicable agent. We incurred $360,000 of stock issuance costs in the establishment of the ATM Program. Stock issuance costs consisted primarily of underwriters’ fees and legal and accounting fees.

During the year ended December 31, 2016, we issued 653,000 shares and received net proceeds of $14,886,000. Future sales, if any, will depend on a variety of factors to be determined by us from time to time, including among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us.

Dividends

For the year ended December 31, 2016, we paid dividends of $40,643,000 or $1.22 per share (which consisted of $33,202,000 or $1.00 per share of regular quarterly cash dividends and a $7,441,000 or $0.22 per share special cash and stock dividend). For the year ended December 31, 2015, we paid dividends of $35,150,000 or $1.04 per share (which consisted of $30,425,000 or $0.90 per share of regular quarterly cash dividends and a $4,725,000 or $0.14 per share special cash dividend).

Dividend Reinvestment Plan

Our dividend reinvestment plan provides our common stockholders with a convenient and economical method of acquiring additional shares of common stock by reinvesting all or a portion of their dividend distributions. During the year ended December 31, 2016, we issued 42,681 shares under the dividend reinvestment plan and raised $897,000.

Stock-Based Compensation

Compensation cost for our stock-based compensation plans using the fair value method was $1,426,000, $1,090,000 and $917,000 for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in general and administrative expenses in our consolidated statements of operations.