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Note 1: Nature of Operations and Summary of Significant Accounting Policies: Stock Option Plans (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Stock Option Plans

Stock Option Plans

 

The Company has stock-based employee compensation plans, which are described more fully in Note 21.  In accordance with FASB ASC 718, Compensation – Stock Compensation, compensation cost related to share-based payment transactions is recognized in the Company’s consolidated financial statements based on the grant-date fair value of the award using the modified prospective transition method.  For the years ended December 31, 2012, 2011 and 2010, share-based compensation expense totaling $435,000, $486,000 and $461,000, respectively, was included in salaries and employee benefits expense in the consolidated statements of income.

 

On December 31, 2005, the Board of Directors of the Company approved the accelerated vesting of certain outstanding out-of-the-money unvested options (Options) to purchase shares of the Company’s common stock held by the Company’s officers and employees.  Options to purchase 183,935 shares which would otherwise have vested from time to time over the next five years became immediately exercisable as a result of this action.  The accelerated Options had a weighted average exercise price of $31.49.  The closing market price on December 30, 2005, was $27.61. 

 

The Company also placed a restriction on the sale or other transfer of shares (including pledging the shares as collateral) acquired through the exercise of the accelerated Options prior to the original vesting date.  With the acceleration of these Options, the compensation expense, net of taxes, that was recognized in the Company’s income statements for 2010 was reduced by approximately $103,000.  On December 31, 2005, the accelerated Options represented approximately 41% of the unvested Company options and 27% of the total of all outstanding Company options.