Shareholders' Equity

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity 

Stock-Based Compensation 

The compensation cost related to stock options, restricted stock and restricted stock units (included in salaries and employee benefits) was $1.2 millionfor the three months ended March 31, 2013 as compared to $916,000for the three months ended March 31, 2012. The total income tax benefit recognized related to stock-based compensation was $474,000for the three months ended March 31, 2013 as compared to $366,000for the three months ended March 31, 2012. 

The following table summarizes information about stock option activity for the three months ended March 31, 2013: 

(in thousands, except per share data)

	Three months ended March 31, 2013
					Weighted-Avg
	Options		Weighted-Avg		Remaining Contractual	Aggregate
	Outstanding		Exercise Price		Term (Years)	Intrinsic Value
Balance, beginning of period	1,850		$	15.37
Exercised	(3	)	$	10.94
Forfeited/expired	(11	)	$	18.78
Balance, end of period	1,836		$	15.36	4.81	$	1,958
Options exercisable, end of period	1,362		$	16.69	3.90	$	1,131

The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of options exercised during the three months ended March 31, 2013 was $7,000as compared to three months ended March 31, 2012 of $7,000.During the three months ended March 31, 2013, the amount of cash received from the exercise of stock options was $33,000as compared to the three months ended March 31, 2012 of $20,000.

The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model.  There were no stock options granted in the three months ended March 31, 2013 and 2012. 

The Company grants restricted stock periodically as a part of the 2003 Stock Incentive Plan for the benefit of employees. Restricted shares issued prior to 2011 generally vest on an annual basis over five years. Restricted shares issued since 2011 generally vest over a three year period, subject to time or performance vesting conditions.  The following table summarizes information about nonvested restricted share activity for the three months ended March 31, 2013: 

(in thousands, except per share data)

	Three months ended March 31, 2013
	Restricted		Weighted
	Shares		Average Grant
	Outstanding		Date Fair Value
Balance, beginning of period	763		$	12.39
Granted	298		$	12.17
Released	(101	)	$	12.48
Forfeited/expired	—		$	—
Balance, end of period	960		$	12.31

The total fair value of restricted shares vested and released during the three months ended March 31, 2013 was $1.3 millionas compared to the three months ended March 31, 2012 of $1.6 million.

The Company grants restricted stock units as a part of the 2007 Long Term Incentive Plan for the benefit of certain executive officers.  Restricted stock unit grants are subject to performance-based vesting as well as other approved vesting conditions.  The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the performance and service conditions set forth in the grant agreements.  There was no restricted stock unit activity for the three months ended March 31, 2013, and 130,000 restricted stock units with a weighted average grant date fair value of $10.41 remain outstanding at March 31, 2013.

As of March 31, 2013, there was $1.4 million of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of 1.5 years.  As of March 31, 2013, there was $7.1 million of total unrecognized compensation cost related to nonvested restricted stock which is expected to be recognized over a weighted-average period of 2.1 years. As of March 31, 2013, there was $443,000 of total unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted-average period of 1.1 years, assuming expected performance conditions are met. 

For the three months ended March 31, 2013, the Company received income tax benefits of $517,000as compared to the three months ended March 31, 2012 of $622,000related to the exercise of non-qualified employee stock options, disqualifying dispositions on the exercise of incentive stock options, the vesting of restricted shares and the vesting of restricted stock units. In the three months ended March 31, 2013, the Company had net tax benefits (tax benefit resulting from tax deductions greater than the compensation cost recognized) of $10,000, compared to $42,000 of net tax deficiencies (tax deficiency resulting from tax deductions less than the compensation cost recognized) for the three months ended March 31, 2012.  Only cash flows from gross excess tax benefits are classified as financing cash flows.

At the annual meeting on April 16, 2013, shareholders approved the Company's 2013 Incentive Plan (the “2013 Plan”), which, among other things, authorizes the issuance of equity awards to directors and employees and reserves 4,000,000 shares of the Company's common stock for issuance under the plan. With the adoption of the 2013 Plan, no additional awards will be issued from the 2003 Stock Incentive Plan or the 2007 Long Term Incentive Plan.