Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation Plans

Share-Based Compensation

The Corporation maintains a share-based compensation plan under which it periodically grants share-based awards, which consists of stock options and restricted stock units, for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three-month periods ended September 30, 2012 and 2011, share-based compensation expense related to stock options and restricted stock units totaled $0.5 million and $0.3 million, respectively. During the nine-month periods ended September 30, 2012 and 2011, share-based compensation expense related to stock options and restricted stock units totaled $1.3 million and $0.7 million, respectively.

During the nine-month period ended September 30, 2012, the Corporation granted options to purchase 229,763 shares of common stock and 69,772 restricted stock units to certain officers. At September 30, 2012, there were 986,095 shares of common stock available for future grants under the share-based compensation plan.

Stock Options

A summary of activity for the Corporation’s stock options as of and for the nine months ended September 30, 2012 is presented below:

	Non-Vested Stock Options Outstanding						Stock Options Outstanding
	Number of Options		Weighted- Average Exercise Price Per Share		Weighted- Average Grant Date Fair Value Per Share		Number of Options		Weighted- Average Exercise Price Per Share
Outstanding at January 1, 2012	162,883		$	21.27	$	6.55	815,119		$	28.29
Granted	229,763		23.78		7.08		229,763		23.78
Exercised	—		—		—		(1,003	)	19.97
Vested	(76,103	)	21.55		6.63		—		—
Forfeited/expired	(1,778	)	21.48		6.62		(17,133	)	30.46
Outstanding at September 30, 2012	314,765		$	23.03	$	6.92	1,026,746		$	27.26
Exercisable/vested at September 30, 2012							711,981		$	29.12

The weighted-average remaining contractual terms were 5.7 years for all outstanding stock options and 4.1 years for exercisable stock options at September 30, 2012. The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $0.7 million and $0.4 million, respectively, at September 30, 2012. The aggregate intrinsic values of outstanding and exercisable options at September 30, 2012 were calculated based on the closing market price of the Corporation’s common stock on September 30, 2012 of $24.20 per share less the exercise price. Options with intrinsic values less than zero, or “out-of-the-money” options, were not included in the aggregate intrinsic value reported.

At September 30, 2012, unrecognized compensation expense related to stock options totaled $1.7 million and is expected to be recognized over a remaining weighted average period of 2.2 years.

The fair value of the stock options granted during the nine months ended September 30, 2012 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions.

Expected dividend yield	3.60		%
Risk-free interest rate	1.18		%
Expected stock price volatility	44.4		%
Expected life of options – in years	6.11
Weighted average per share fair value	$	7.08

Restricted Stock Units

In addition to stock options, during the nine months ended September 30, 2012, the Corporation granted restricted stock performance units and time restricted stock units (collectively referred to as restricted stock units) to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels. The restricted stock performance units are eligible to vest from 0.5x to 1.5x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target level is not achieved, no shares will become vested or be issued for that respective year’s restricted stock performance units. The time restricted stock units vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, the restricted stock units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock units is recognized over the expected requisite performance or service period, as applicable.

A summary of the activity for restricted stock units as of and for the nine months ended September 30, 2012 is presented below:

	Number of Units		Weighted- Average Grant Date Fair Value  Per Unit
Outstanding at January 1, 2012	130,512		$	20.90
Granted	69,772		22.20
Converted into shares of common stock	(35,101	)	23.28
Forfeited/expired	(8,428	)	23.05
Outstanding at September 30, 2012	156,755		$	20.83

At September 30, 2012, unrecognized compensation expense related to restricted stock unit awards totaled $2.1 million and is expected to be recognized over approximately two years.