Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Transactions under the Company’s stock option plans for the nine months ended September 30, 2019 are summarized in the following table:



	Shares		Weighted average exercise price		Weighted average remaining contractual life in years	Aggregate intrinsic value
Outstanding at December 31, 2018	584,178		$	13.00	7.1	$	4,574,680
Options granted	55,000		20.61
Options exercised	(57,234	)	7.41
Options forfeited	(5,333	)	19.38
Options expired	—		—
Outstanding at September 30, 2019	576,611		$	14.22	6.9	$	4,573,458
Exercisable at September 30, 2019	338,089		$	10.28	5.5	$	4,011,761

Fair Values of Options Granted Using Black-Scholes Option-Pricing Model

The fair values of the options granted during the nine months ended September 30, 2019 and 2018 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions. No options were granted during the three months ended September 30, 2019 and 2018:



	For the three months ended September 30,						For the nine months ended September 30,
	2019			2018			2019			2018
Number of options granted	—			—			55,000			114,500
Weighted average exercise price	$	—		$	—		$	20.61		$	20.24
Weighted average fair value of options	$	—		$	—		$	6.21		$	5.97
Expected life in years (1)	0.00			0.00			8.23			6.35
Expected volatility (2)	—		%	—		%	27.08		%	26.40		%
Risk-free interest rate (3)	—		%	—		%	2.55		%	2.48		%
Dividend yield (4)	—		%	—		%	1.36		%	1.14		%

(1) The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding.

(2) The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options.

(3) The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of the options on the date of grant.

(4) The expected dividend yield is the projected annual yield based on the grant date stock price.

Schedule of Cash Proceeds Received from Options Exercised

The following table presents information about options exercised during the three and nine months ended September 30, 2019 and 2018:



	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019		2018
Number of options exercised	4,800		23,366		57,234		100,973
Total intrinsic value of options exercised	$	38,127	$	462,533	$	742,737	$	1,699,924
Cash received from options exercised	$	61,134	$	108,156	$	424,198	$	500,114
Tax deduction realized from options	$	11,491	$	130,018	$	223,453	$	477,849

Summary of Information about Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at September 30, 2019:



	Options outstanding				Options exercisable
Range of exercise prices	Options outstanding	Weighted average remaining contractual life (in years)	Weighted average exercise price		Options exercisable	Weighted average exercise price
$0.00 - $6.00	61,761	2.9	$	5.60	61,761	$	5.60
$6.01 - $12.00	196,817	5.5	8.70		196,817	8.70
$12.01 - $18.00	67,533	7.3	15.78		43,335	15.80
$18.01 - $24.00	250,500	8.9	20.26		36,176	20.27
Total	576,611	6.9	$	14.22	338,089	$	10.28

Compensation Expense Related to Stock Options, Restricted Stock and Related Income Tax Benefit

Compensation expense related to restricted stock for the three and nine months ended September 30, 2019 and 2018 is detailed in the following table:



	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019		2018
Compensation expense	$	172,558	$	143,854	$	485,466	$	429,990
Income tax benefit	49,869		40,437		140,299		120,870

Compensation expense related to stock options and the related income tax benefit for the three and nine months ended September 30, 2019 and 2018 are detailed in the following table:



	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019		2018
Compensation expense	$	155,942	$	115,345	$	446,544	$	357,007
Income tax benefit	45,067		32,424		129,051		100,355

Summary of Nonvested Restricted Stock Activity

The following table summarizes nonvested restricted stock activity for the nine months ended September 30, 2019:



	Shares		Average grant date fair value
Nonvested restricted stock at December 31, 2018	105,312		$	16.55
Granted	37,650		20.52
Cancelled	(1,350	)	17.92
Vested	(35,438	)	14.11
Nonvested restricted stock at September 30, 2019	106,174		$	18.76

Restricted Stock Awards Granted

Restricted stock awards granted during the three and nine months ended September 30, 2019 and 2018 were as follows:



	For the three months ended September 30,				For the nine months ended September 30,
	2019		2018		2019		2018
Number of shares granted	7,500		—		37,650		38,300
Average grant date fair value	$	20.00	$	—	$	20.52	$	20.64

Summary of Components of Net Periodic Pension Cost of Defined Benefit Plan Recognized

The following table summarizes the components of the net periodic pension cost of the defined benefit plan recognized during the three and nine months ended September 30, 2019 and 2018:



	For the three months ended September 30,				For the nine months ended September 30,
(In thousands)	2019		2018		2019		2018
Service cost (1)	$	235	$	953	$	454	$	1,159
Interest cost	36		16		99		47
Amortization of prior service cost	20		20		62		62
Net periodic benefit cost	$	291	$	989	$	615	$	1,268

(1) On September 27, 2018 the Company approved a change in calculation of the Retirement Benefit resulting in an additional $850 thousand in expense.

Summary of Changes in Benefit Obligations of Defined Benefit Plan

The following table summarizes the changes in benefit obligations of the defined benefit plan during the nine months ended September 30, 2019 and 2018:



	For the nine months ended September 30,
(In thousands)	2019		2018
Benefit obligation, beginning of year	$	2,747	$	1,187
Service cost (1)	454		1,159
Interest cost	99		47
Benefit obligation, end of period	$	3,300	$	2,393

(1) On September 27, 2018 the Company approved a change in calculation of the Retirement Benefit resulting in an additional $850 thousand in expense.