Stock Option Plans

12 Months Ended

Dec. 31, 2014

Stock Option Plans [Abstract]

Stock Option Plans

Note 22:Stock Option Plans

Under the Company’s stock option plans, which are  accounted for in accordance with FASB ASC 718, Stock Compensation, the Company grants selected executives and other key employees and directors incentive and non-qualified stock option awards that vest and become fully exercisable at the discretion of the Compensation Committee as the options are granted.  The Company is authorized to grant options for up to 934,702 shares of the Company’s common stock under two separate stock option plans.  Under certain provisions of the plans, the number of shares available for grant may be increased without shareholder approval by the amount of shares surrendered as payment of the exercise price of the stock option and by the number of shares of common stock of the Company that could be repurchased by the Company using proceeds from the exercise of stock options. 

The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table.  Expected volatility is based on historical volatility of the Company’s stock and other factors.  The Company uses historical data to estimate timing of option exercises and employee terminations  within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes.  The expected term of options granted represents the period of time that options are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior.  The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.  The discount rate for post-vesting restrictions is estimated based on the Company’s credit-adjusted risk-free rate of return. 

The following is a summary of the status of the Company’s stock option plans and changes in these plansduring2014.

	2014
Options	Shares		Weighted- Average Exercise Price	Weighted-Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, beginning of year	687,043	$	10.70
Exercised	(118,823)		11.34
Outstanding and exercisable, end of year	568,220	$	10.57	6.5 years	$	6,570

There were118,823,  61,677and 67,916 options exercised during the years ended December 31, 2014, 2013 and 2012.  There were no options granted during 2014 or 2013 and 58,000 shares granted in 2012.  The weighted-average grant-date fair value of options granted during 2012 was $2.01.  The Company will fulfill options with authorized but unissued shares of stock from the 934,702shares the Company has authorized under the shareholder approved equity compensation plans.  There were 101,642 shares remaining to be granted under the current plans. 

The incentive stock options were granted with the exercise price equal to market price on the day of the grant.  The following assumptions were used to determine the fair value of options granted in 2012.

	2012
Risk-free interest rate	1.70%
Expected option life	10.0 yrs
Dividend yield	3.45%
Expected volatility of stock price	31.50%

Cash received from options exercised under all share-based payment arrangements for years ended December 31, 2014, 2013 and 2012 was $1.3 million,  $538,000and $551,000, respectively.  The intrinsic value on options exercised during the years ended December 31, 2014, 2013 and 2012 was $1.0 million,$377,000 and $287,000, respectively.