Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2011

Share-Based Compensation Plans [Abstract]

Share-Based Compensation Plans

Note 10: Share-Based Compensation Plans

During the three-month periods ended June 30, 2011 and 2010, share-based compensation expense related to stock options and restricted stock performance units totaled $0.2 million and $0.7 million, respectively. During the six-month periods ended June 30, 2011 and 2010, share-based compensation expense related to stock options and restricted stock performance units totaled $0.4 million and $0.9 million, respectively.

During the three-month period ended June 30, 2011, the Corporation granted options to purchase 99,172 shares of common stock and 51,598 restricted stock performance units to certain officers. At June 30, 2011 there were 394,404 shares of common stock available for future grants under share-based compensation plans.

Stock Options

The Corporation issues fixed stock options to certain officers. Stock options are issued at the current market price of the Corporation’s common stock on the date of grant, generally vest ratably over a three-year period and expire ten years from the date of grant.

A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2011 is presented below:

	Non-Vested
	Stock Options Outstanding							Stock Options Outstanding
				Weighted-		Weighted-
				Average		Average					Weighted-
				Exercise		Grant Date					Average
	Number of			Price		Fair Value		Number of			Exercise Price
	Options			Per Share		Per Share		Options			Per Share
Outstanding at January 1, 2011		126,670		$	23.29	$	6.99		757,665		$	29.42
Granted		99,172			19.95		6.12		99,172			19.95
Exercised		—			—		—		—			—
Vested		(62,459	)		23.29		6.77		—			—
Forfeited/expired		—			—		—		(16,162	)		30.68
Outstanding at June 30, 2011		163,383		$	21.27	$	6.54		840,675		$	28.28
Exercisable/vested at June 30, 2011									677,292		$	29.97

The weighted-average remaining contractual terms were 5.7 years for all outstanding stock options and 4.8 years for exercisable stock options. The outstanding and exercisable stock options at June 30, 2011 had no intrinsic value as the closing price of the Corporation’s common stock on that date of $18.76 per share was less than the exercise price of all stock options outstanding.

At June 30, 2011, unrecognized compensation cost related to stock options totaled $0.9 million. This cost is expected to be recognized over a remaining weighted average period of 2.3 years.

Restricted Stock Performance Units

In addition to stock options, the Corporation also grants restricted stock performance units to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels. Generally, 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. Upon achievement of the performance target level and satisfaction of a service condition, if applicable, the restricted stock performance units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock performance units is recognized over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions.

A summary of the activity for restricted stock performance units as of and for the six months ended June 30, 2011 is presented below:

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Outstanding at January 1, 2011		80,852		$	22.99
Granted		51,598			17.87
Converted into shares of common stock		(2,427	)		23.70
Forfeited/expired		—			—
Outstanding at June 30, 2011		130,023		$	20.99

At June 30, 2011, unrecognized compensation cost related to restricted stock performance unit awards totaled $0.9 million. This cost is recognized based on the expected achievement of the targeted earnings per common share level for the restricted stock performance units over approximately two years.