Stock-based Compensation

12 Months Ended

Dec. 31, 2016

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

Stock-based Compensation

Note 11
Stock-based Compensation

The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) provides 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 1,500,000 shares of the Company’s common stock in the form of stock options, SARs, restricted stock, restricted stock units and performance awards.

Restricted Stock
Restricted shares granted prior to April 16, 2013 are amortized to expense over the three-year vesting period. Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over the three-year vesting period whereas restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period with the exception of those shares granted in lieu of cash payment for retainer fees which are expensed in the period earned. Changes in restricted shares outstanding for the year ended December 31, 2016 were as follows:

			Weighted Average
			Grant Date
	Shares		Fair Value
Balance at December 31, 2015	69,041		$	51.33
Granted	36,196		$	50.33
Vested	(29,469	)	$	50.89
Forfeited	(1,928	)	$	50.75
Balance at December 31, 2016	73,840		$	51.03

During 2015 and 2014, 42,786 and 22,629 shares, respectively, were granted with weighted average per share market values at date of grant of $51.04 in 2015 and $58.89 in 2014. 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 whereas restricted shares granted to members of the Board of Directors are amortized to expense over a one-year period. Amortization of the restricted stock bonus awards totaled $1,712,000 for 2016, $1,514,000 for 2015 and $1,250,000 for 2014. As of December 31, 2016, the total unrecognized compensation expense related to non-vested restricted stock awards was $1,688,000 and the related weighted average period over which it is expected to be recognized is approximately 0.58 years. The total fair value of shares vested during the years ended December 2016, 2015, and 2014 was $1,500,000, $1,089,000, and $1,066,000, respectively.

SARs
There were no SARs granted during the year ended December 31, 2016. The Company uses the Black-Scholes option-pricing model to determine the fair value of the SARs at the date of grant.

During 2016, the Company recognized SARs expense of $247,000. As of December 31, 2016, the total unrecognized compensation expense related to SARs was $18,000, and the related weighted average period over which it is expected to be recognized is .08 years. Changes in SARs outstanding for the year ended December 31, 2016 were as follows:

	SARs		Weighted Average Exercise Price
Balance at December 31, 2015	307,323		$	36.57
Exercised	(69,855	)	$	30.96
Forfeited	—		$	—
Balance at December 31, 2016	237,468		$	38.22
Exercisable at December 31, 2016	225,304		$	36.95

The total intrinsic value of SARs exercised during 2016 and 2015 was $2,162,000 and $1,268,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2016 was 5.22 years, and the aggregate intrinsic value was $8,395,000. The average remaining contractual term for SARs exercisable as of December 31, 2015 was 5.99 years, and the aggregate intrinsic value was $4,577,000.

The total compensation cost for share-based payment arrangements was $1,959,000, $2,059,000, and $2,042,000 in 2016, 2015, and 2014, respectively.