Stock Compensation

12 Months Ended

Dec. 31, 2011

Stock Compensation [Abstract]

Stock Compensation

(14) Stock Compensation

The Company’s stock option plan grants stock options to employees. The majority of the options outstanding under the plan generally vests evenly over a period of three to five years and have a term of 10 years.

The Company applied the recognition and measurement principles of topic 718-10-10, Share Based Payments under the modified prospective application method, commencing in the first quarter of 2006 and recognizes the expense over the vesting period. The Company uses the Black-Scholes option pricing model to value stock options. Compensation expense relating to stock options of $577, $636 and $854 were reflected in earnings for the years ended December 31, 2011, 2010 and 2009, respectively.

In addition to stock options discussed above, the Company may grant restricted shares to employees under the incentive stock plan. During 2011, the Company granted 272,081 shares of restricted stock at a weighted average grant price of $18.85. During 2010, the Company granted 235,580 restricted shares at a weighted average grant price of $14.87. Of the restricted stock granted in 2011, 41,543 shares vest on the grant date ratably over three years at 25%, 25% and 50%, respectively, 5,000 shares cliff vest at the end of five years, 205,000 shares cliff vest at the end of three years subject to performance targets, and the remaining 20,538 shares were granted pursuant to the Directors’ Stock Award Plan. Total expense recognized in 2011, 2010 and 2009, for restricted stock was $1,736, $1,422, and $995, respectively.

A summary of options activity for the year ended December 31, 2011, is as follows:

		September 30,		September 30,		September 30,		September 30,
Options	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		699,234	$	12.14		5.19	$	6,464
Granted		—		—		—		—
Exercised		110,135		8.14
Forfeited		19,512		12.80
Outstanding at December 31, 2011		569,587	$	12.87		4.66	$	5,058
Exercisable at December 31, 2011		453,010	$	12.50		3.93	$	4,189

The weighted average fair market value of options granted during 2010 and 2009 was $14.64 and $10.92 respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009, was $1,432, $2,745 and $244, respectively.

A summary of the status of the Company’s non-vested share activity for the year ended December 31, 2011, is as follows:

		September 30,		September 30,
Non-vested Options	Options		Weighted Average Grant Date Fair Value
Non-vested at January 1, 2011		327,484	$	14.02
Granted		—
Vested		191,395
Forfeited		19,512
Non-vested at December 31, 2011		116,577	$	14.29

The fair value of each option granted during 2010 and 2009, was estimated on the grant date using the Black-Scholes option pricing approach with the following assumptions:

		September 30,			September 30,
	2010			2009
Expected volatility		44.77	%		42.96	%
Expected dividends		0.00	%		0.00	%
Expected term (in years)		10.00			10.00
Risk-free rate		4.50	%		4.50	%

At December 31, 2011, there was $331 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.2 years.