Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFITS AND SHARE BASED COMPENSATION (Tables)

v2.4.1.9
EMPLOYEE BENEFITS AND SHARE BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2014
EMPLOYEE BENEFITS AND SHARE BASED COMPENSATION [Abstract]  
Payment Made for Employee Benefit Plans

The following were payments made to the Company’s employees, in accordance with the plans described above, in 2014, 2013, and 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

 

 

Bank

UMG

 

Bank

UMG

 

Bank

UMG

 

401(k) Plan

$         3,312 

$            403 

 

$         2,002 

$            569 

 

$         1,427 

$            588 

 

ESOP
3,440 

 -

 
1,774 

 -

 
1,896 

 -

 

Cash
983 

 -

 
482 

 -

 
314 

 -

 

Total

$         7,735 

$            403 

 

$         4,258 

$            569 

 

$         3,637 

$            588 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Shares Available in Each Plan

The following table summarizes the shares available in the 2011 Plan as of December 31, 2014:  

 

 

 

 

 

 

2011 Plan

 

Beginning Authorization
1,000,000 

 

Granted
(519,227)

 

Remaining available for grant
480,773 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Recognized Stock-Based Compensation Expense

For the year ended December 31, 2014, the Company recognized stock-based compensation expense (included in salaries and benefits expense) (dollars in thousands, except per share data) as follows:

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2014

 

2013

 

2012

 

Stock-based compensation expense
$
979 

 
$
889 

 
$
1,252 

 

Reduction of income tax expense
234 

 
181 

 
309 

 

Per share compensation cost
$
0.02 

 
$
0.04 

 
$
0.05 

 

 

Summary of Stock Option Activity

The following table summarizes the stock option activity for the last three years:

 

 

 

 

 

 

 

 

 

 

 

Stock Options
(shares)

 

Weighted Average Exercise Price

 

Options Exercisable
(shares)

 

Weighted Average Exercise Price

Balance, December 31, 2011
422,750 

 

$            17.70

 
184,985 

 

$            22.28

Granted
131,657 

 
14.40 

 

 

 

 

Exercised
(2,376)

 
12.11 

 

 

 

 

Forfeited
(51,453)

 
17.11 

 

 

 

 

Balance, December 31, 2012
500,578 

 
16.92 

 
218,825 

 
20.59 

Granted

 -

 

 -

 

 

 

 

Exercised
(50,119)

 
18.45 

 

 

 

 

Forfeited
(47,513)

 
19.04 

 

 

 

 

Balance, December 31, 2013
402,946 

 
16.48 

 
200,904 

 
18.96 

Options converted upon StellarOne acquisition
124,217 

 
20.88 

 
124,217 

 
20.88 

Granted

 -

 

 -

 

 

 

 

Exercised
(75,282)

 
17.28 

 

 

 

 

Forfeited
(62,612)

 
23.00 

 

 

 

 

Balance, December 31, 2014
389,269 

 
16.69 

 
262,213 

 
18.04 

 

 

 

 

 

 

 

 

 

Summary of the Options Outstanding

A summary of the options outstanding at December 31, 2014 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding

 

Options Exercisable

Range of Exercise Prices

 

Number Outstanding
(shares)

 

Weighted Average Remaining Contractual Life

 

Weighted Average Exercise Price

 

Number Exercisable
(shares)

 

Weighted Average Exercise Price

 

 
$
12.11 

 
97,962 

 
6.32 

yrs

 
$
12.11 

 
54,787 

 
$
12.11 
$
12.59 

-
$
14.08 

 
7,592 

 
4.29 

 

 
$
13.21 

 
7,192 

 
$
13.17 

 

 
$
14.40 

 
107,596 

 
7.15 

 

 
$
14.40 

 
41,016 

 
$
14.40 

        $14.82

-
$
16.23 

 
22,613 

 
1.40 

 

 
$
16.08 

 
22,413 

 
$
16.09 

 

 
$
16.45 

 
84,257 

 
5.30 

 

 
$
16.45 

 
65,857 

 
$
16.45 
$
20.41 

-
$
27.51 

 
29,193 

 
0.93 

 

 
$
24.13 

 
29,193 

 
$
24.13 

 

 
$
27.54 

 
5,059 

 
2.05 

 

 
$
27.54 

 
5,059 

 
$
27.54 

 

 
$
27.62 

 
15,445 

 
2.12 

 

 
$
27.62 

 
15,445 

 
$
27.62 

 

 
$
30.80 

 
4,463 

 
0.78 

 

 
$
30.80 

 
4,463 

 
$
30.80 

 

 
$
31.57 

 
16,788 

 
1.13 

 

 
$
31.57 

 
16,788 

 
$
31.57 
$
12.11 

-
$
31.57 

 
390,968 

 
5.09 

yrs

 
$
16.69 

 
262,213 

 
$
18.04 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table.  No options have been granted since February 2012.

 

 

 

 

 

 

2012

Dividend yield(1)
2.47% 

Expected life in years(2)
7.0 

Expected volatility(3)
41.53% 

Risk-free interest rate(4)
1.24% 

 

 

Weighted average fair value per option granted

$                4.76

 

(1) Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant.

(2) Based on the average of the contractual life and vesting schedule for the respective option.

(3) Based on the monthly historical volatility of the Company’s common stock price over the expected life of the options.

(4) Based upon the Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant.

Summary of Information Concerning Stock Options

The following table summarizes information concerning stock options issued to the Company’s employees that are (i) vested or are expected to vest and (ii) stock options exercisable as of December 31, 2014:

 

 

 

 

 

 

 

 

Stock Options Vested or Expected to Vest

 

Exercisable

Stock options (number of shares)

 
387,814 

 

 
262,213 

Weighted average remaining contractual life in years

 
5.08 

 

 
4.35 

Weighted average exercise price on shares above water

$
14.87 

 

$
15.45 

Aggregate intrinsic value

$
3,108,116 

 

$
1,832,534 

 

 

 

 

 

 

 

Summary of Nonvested Stock Activity

The following table summarizes the restricted stock activity for the year ended December 31, 2014:

 

 

 

 

 

 

 

Number of Shares of Restricted Stock

 

Weighted Average Grant-Date Fair Value

Balance, December 31, 2013
260,763 

 

$
16.47 

Granted
136,931 

 

 
24.28 

Net settle for taxes

(64,536)

 

 
24.82 

Vested
(23,091)

 

 
14.70 

Forfeited
(22,947)

 

 
20.73 

Balance, December 31, 2014
287,120 

 

 
20.07 

 

 

 

 

 

 

Estimated Unamortized Compensation Expense Recognized in Future

The estimated unamortized compensation expense, net of estimated forfeitures, related to restricted stock and stock options issued and outstanding as of December 31, 2014 that will be recognized in future periods is as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Options

 

Restricted Stock

 

Total

 

2015

$
233 

 

$
1,380 

 

$
1,613 

 

2016

 
130 

 

 
1,139 

 

 
1,269 

 

2017

 
15 

 

 
450 

 

 
465 

 

2018

 

 -

 

 
55 

 

 
55 

 

Total

$
378 

 

$
3,024 

 

$
3,402