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Stock-Based Compensation
12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION

The Company has equity awards outstanding under two stock-based compensation plans; the 2015 Equity Incentive Plan (the "2015 Plan") and the 2006 Equity Compensation Plan, as amended and restated (the "2006 Plan"). These plans were primarily established to enhance the Company’s ability to attract, retain and motivate employees. The Company’s Board of Directors or, upon delegation, the Compensation Committee of the Board of Directors (“Compensation Committee”) has exclusive authority to select employees, advisors and others, including directors, to receive awards and to establish the terms and conditions of each award made pursuant to the Company’s stock-based compensation plans.

The 2015 Plan, approved by the Company’s shareholders in May 2015, was established to provide the Company with flexibility to select from various equity-based performance compensation methods, and to be able to address changing accounting and tax rules and corporate governance practices by optimally utilizing performance based compensation. The 2015 Plan did not increase the number of shares of common stock available for awards under the 2006 Plan.

The 2006 Plan, approved by the Company’s shareholders in May 2006 and May 2014, was established to consolidate into one plan the benefits available under all other then existing share-based award plans. The 2006 Plan continues with respect to awards made prior to June 2015. All shares of common stock available for future grant under the 2006 Plan were transferred into the 2015 Plan. At December 31, 2016, there were 1,954,792 common shares available for future grant under the 2015 Plan. As of December 31, 2016, all outstanding stock based compensation awards are for shares of Class A common stock.

Stock Options. All options granted have an exercise price equal to fair market value, which is currently defined as the closing sales price for the stock as quoted on the NASDAQ Stock Market for the last market trading day preceding the date that the Company’s Board of Directors awards the benefit. Options may be subject to vesting as determined by the Company's Board of Directors or Compensation Committee, and can be exercised for periods of up to ten years from the date of grant.

Compensation expense related to stock option awards of $39, $481 and $905 was included in benefits on the Company’s consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, respectively. Related income tax benefits recognized for the years ended December 31, 2016, 2015 and 2014 were $15, $184 and $346, respectively.

No stock option awards were granted in 2016 or 2015.

The following table summarizes stock option activity under the Company’s active stock option plans for the year ended December 31, 2016:
 
Number of
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Remaining
Contract Life
Outstanding options, beginning of year
1,387,378

 
$
17.06

 
 
Exercised
(441,241
)
 
17.68

 
 
Forfeited
(5,294
)
 
17.33

 
 
Outstanding options, end of year
940,843

 
$
16.77

 
2.88 years
Outstanding options exercisable, end of year
940,843

 
$
16.77

 
2.88 years

    
The total intrinsic value of fully-vested stock options outstanding as of December 31, 2016 was $24,255. The total intrinsic value of options exercised was $5,572, $3,931 and $7,363 during the years ended December 31, 2016, 2015 and 2014, respectively. The actual tax benefit realized for the tax deduction from option exercises totaled $2,131, $1,504 and $2,594 for the years ended December 31, 2016, 2015 and 2014, respectively. The Company received cash of $4,683, $3,369 and $6,299 from stock option exercises during the years ended December 31, 2016, 2015 and 2014, respectively. The Company redeemed common stock with aggregate values of $3,117, $2,507 and $6,829 tendered in payment for stock option exercises during the years ended December 31, 2016, 2015 and 2014, respectively.

Information with respect to the Company’s nonvested stock options as of and for the year ended December 31, 2016 follows:
 
Number of
Shares
 
Weighted-Average
Grant Date Fair Value
Nonvested stock options, beginning of year
121,782

 
$
3.48

Vested
(118,088
)
 
3.48

Forfeited
(3,694
)
 
3.48

Nonvested stock options, end of year

 
$



The total fair value of shares vested during 2016 was $411.

Restricted Stock Awards. Common stock issued under the Company’s restricted stock plan may not be sold or otherwise transferred until restrictions have lapsed or performance objectives have been obtained. During the vesting periods, participants have voting rights and receive dividends on all time restricted shares and vesting performance restricted shares. Upon termination of employment, common shares upon which restrictions have not lapsed must be returned to the Company.

All restricted share awards are classified as equity awards. The fair value of equity-classified restricted stock awards is amortized as compensation expense on a straight-line basis over the period restrictions lapse or performance goals are met. Compensation expense related to restricted stock awards of $3,864, $2,888 and $2,109 was included in benefits on the Company’s consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, respectively. Related income tax benefits recognized for the years ended December 31, 2016, 2015 and 2014 were $1,478, $1,104 and $807, respectively.
        
The following table presents information regarding the Company’s restricted stock as of December 31, 2016:
 
Number of
Shares
 
Weighted-Average
Measurement Date
Fair Value
Restricted stock, beginning of year
303,639

 
$
25.15

Granted
190,239

 
26.27

Vested
(146,979
)
 
24.18

Forfeited
(29,844
)
 
25.67

Restricted stock, end of year
317,055

 
$
26.22


        
During 2016, the Company issued 190,239 restricted common shares. The 2016 restricted share awards included 98,352 performance restricted shares of which 30,424 vest in varying percentages upon achievement of defined return on asset performance goals, 30,424 vest in varying percentages upon achievement of defined return on equity performance goals and 30,424 vest in varying percentages upon achievement of defined total return to shareholder goals. Vesting of the performance restricted shares is also contingent on employment as of December 31, 2018. Additionally, 91,385 time-restricted shares were issued during 2016 that vest one-third on each annual anniversary of the grant date through February 15, 2019, contingent on continued employment through the vesting date.
        
As of December 31, 2016, there was $4,835 of unrecognized compensation cost related to nonvested restricted stock awards expected to be recognized over a period of 1.78 years.