Stock-based Compensation

12 Months Ended

Dec. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 11
Stock-based Compensation

In 2007, the Company’s shareholders approved the Omnibus Incentive Stock Plan (the “Omnibus Plan”) to provide incentive opportunities for key employees and non-employee directors and to align the personal financial interests of such individuals with those of the Company’s shareholders. The Omnibus Plan permits the issuance of up to 1,065,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards.

The Company continued to maintain its other stock-based incentive plans for the restricted common stock previously awarded and the options previously issued and outstanding during the year ended December 31, 2012 until the remaining options were exercised in December 2012. There are no options outstanding and no unvested restricted shares remaining as of December 31, 2012.

All share and per share data have been restated to give effect to the 10% stock dividend issued on December 14, 2012.

Restricted Stock
Restricted shares are amortized to expense over the three-year vesting period. Changes in restricted shares outstanding for the year ended December 31, 2012 were as follows:

	Shares		Fair Value
Balance at December 31, 2011	57,717		$	27.15
Granted	28,370			34.03
Vested	(30,944	)		25.48
Forfeited	(268	)		33.56
Balance at December 31, 2012	54,875		$	31.61

During 2011 and 2010, 31,472 and 18,330 shares, respectively, were granted with weighted average per share market values at date of grant of $30.05 in 2011 and $25.55 in 2010. The fair value of such shares, which is based on the market price on the date of grant, is amortized to expense over the three-year vesting period. Amortization of the restricted stock bonus awards totaled $788,000 for 2012, $787,000 for 2011 and $848,000 for 2010. As of December 31, 2012, the total unrecognized compensation expense related to non-vested restricted stock awards was $1,068,000 and the related weighted average period over which it is expected to be recognized is approximately 0.80 years.

Stock Options
Changes in options outstanding for the year ended December 31, 2012 were as follows:

		Weighted Average
	Shares	Exercise Price
Balance at December 31, 2011	33,691	$	16.17
Exercised	33,691	$	16.17
Balance at December 31, 2012	0		—

The total intrinsic value of options exercised during 2012 and 2011 was $729,000 and $212,000, respectively.

A summary of the activity of the non-vested options during 2012 is shown below.

			Weighted Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2011	4,041		$	2.45
Vested	(4,041	$	2.45
Non-vested at December 31, 2012	0			—

For the year ended December 31, 2012, there were 28,405 non-qualified options exercised and 5,286 incentive stock options exercised. During 2012, the Company recognized stock option expense of $27,000.

Stock Appreciation Rights (SARs)
There were 92,352 SARs granted during the year ended December 31, 2012. The Company uses the Black-Scholes option-pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the $8.60 per share fair value.

	Year Ended December 31, 2012
Risk-free interest rate	1.38%
Expected life	7 years
Expected volatility	29.39%
Expected dividend yield	1.84%

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield for the period equal to the expected life of the SARs at the time of the grant. The expected life was derived using the historical exercise activity. The Company uses historical volatility for a period equal to the expected life of the options using average monthly closing market prices of the Company’s stock. The expected dividend yield is determined based on the Company’s current rate of annual dividends.

During 2012, the Company recognized SARs expense of $583,000. As of December 31, 2012, the total unrecognized compensation expense related to stock appreciation rights was $827,000, and the related weighted average period over which it is expected to be recognized is 1.42 years. Changes in SARs outstanding for the year ended December 31, 2012 were as follows:

	Shares			Weighted Average Exercise Price
Balance at December 31, 2011	365,845			$	24.43
Granted	92,352		$	33.56
Forfeited	(1,005	)		$	33.56
Exercised	(105,311	)		$	21.87
Balance at December 31, 2012	351,881			$	27.52
Exercisable at December 31, 2012	190,587			$	23.98

The total intrinsic value of SARs exercised during 2012 and 2011 was $1,769,000 and $175,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2012 was 7.34 years and the aggregate intrinsic value was $4,988,000. The average remaining contractual term for SARs exercisable as of December 31, 2011 was 7.42 years and the aggregate intrinsic value was $3,166,000.