Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

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

Stock-Based Compensation

Note 8 – Stock-Based Compensation

The Amended and Restated Omnibus Stock and Performance Compensation Plan (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, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company may issue shares out of treasury stock for these awards. During the three months ended March 31, 2018, 19,556 restricted shares, 28,388 performance-based restricted shares, and 0 SARs were granted under the Omnibus Plan.

Restricted Stock
Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over a 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 payments for retainer fees which are expensed in the period earned. Beginning on February 2, 2017, restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period.

As of March 31, 2018, the total unrecognized compensation expense related to non-vested restricted shares was $2,048,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.2 years.

Following is a summary of the activity of the restricted stock:

	Three Months Ended
	March 31, 2018
	Shares		Fair Value
Balance at December 31, 2017	78,166		$	50.30
Granted	19,556		$	58.39
Vested	(21,662	)	$	45.63
Balance at March 31, 2018	76,060		$	53.71

Performance-Based Restricted Stock
In February of 2017, the Company granted three-year performance based restricted stock (“PBRS”) awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2017 through December 31, 2019. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares granted was 25,342 with a grant date fair value of $59.20 per share. The 2018 expense related to these grants is currently estimated to be $610,000 and is based on the grant date fair value of the awards and the Company’s achievement of 124% of the target financial goals. The estimated expense for 2018 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals.

In February of 2018, the Company granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2018 through December 31, 2020. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares granted was 28,388 with an average grant date fair value of $58.35 per share. The 2018 expense related to these grants is currently estimated to be $552,000 and is based on the grant date fair value of the awards and the Company’s achievement of 100% of the target financial goals. The estimated expense for 2018 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals.

SARs
There were no SARs granted and no expense recognized during the three months ended March 31, 2018. Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2018:

			Weighted-		Average	Aggregate
			Average		Remaining	Intrinsic
			Exercise		Contractual	Value
	Shares		Price		Term Years	(In thousands)
Balance at December 31, 2017	234,236		$	34.97	5.03	$	7,291
Exercised	(2,484	)		20.61
Exercisable at March 31, 2018	231,752		$	35.13	4.06	$	5,651

There were no non-vested SARs at March 31, 2018.