Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFITS (Tables)

v2.4.0.8
EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2013
EMPLOYEE BENEFITS [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 2013, 2012, and 2011 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

2011

 

 

Bank

UMG

 

Bank

UMG

 

Bank

UMG

 

401(k) Plan

$         2,002 

$            569 

 

$         1,427 

$            588 

 

$         1,374 

$            355 

 

ESOP
1,774 

 -

 
1,896 

 -

 
1,700 

 -

 

Cash
482 

 -

 
314 

 -

 
315 

 -

 

Total

$         4,258 

$            569 

 

$         3,637 

$            588 

 

$         3,389 

$            355 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Shares Available in Each Plan

The following table summarizes the shares available in the 2011 Plan as of December 31, 2013:  

 

 

 

 

 

 

2011 Plan

 

Beginning Authorization
1,000,000 

 

Granted
(387,594)

 

Expired, forfeited, or cancelled
26,857 

 

Remaining available for grant
639,263 

 

 

 

 

 

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, 2010
324,776 

 

$            19.38

 
183,544 

 

$            20.90

Granted
134,046 

 
12.11 

 

 

 

 

Exercised
(29,625)

 
10.21 

 

 

 

 

Forfeited
(6,447)

 
17.22 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

Summary of the options outstanding

A summary of the options outstanding at December 31, 2013 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 

 
113,045 

 
6.87 

yrs

 
$
12.11 

 
45,044 

 
$
12.11 
$
12.59 

-
$
14.08 

 
4,558 

 
5.75 

 

 
$
13.18 

 
3,188 

 
$
13.10 

 

 
$
14.40 

 
114,887 

 
8.15 

 

 
$
14.40 

 
21,569 

 
$
14.40 

 

 
$
14.82 

 
1,000 

 
6.42 

 

 
$
14.82 

 
600 

 
$
14.82 

 

 
$
16.45 

 
91,088 

 
6.32 

 

 
$
16.45 

 
52,135 

 
$
16.45 
$
20.41 

-
$
22.65 

 
22,335 

 
0.72 

 

 
$
22.29 

 
22,335 

 
$
22.29 

 

 
$
23.50 

 
17,813 

 
1.07 

 

 
$
23.50 

 
17,813 

 
$
23.50 

 

 
$
27.51 

 
3,750 

 
1.58 

 

 
$
27.51 

 
3,750 

 
$
27.51 

 

 
$
27.62 

 
15,995 

 
3.15 

 

 
$
27.62 

 
15,995 

 
$
27.62 

 

 
$
31.57 

 
18,475 

 
2.15 

 

 
$
31.57 

 
18,475 

 
$
31.57 
$
12.11 

-
$
31.57 

 
402,946 

 
6.09 

yrs

 
$
16.48 

 
200,904 

 
$
18.96 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Stock Option on the Date of Grant Fair Value

 

The Company issues shares upon option exercise from the Company’s authorized but unissued shares, and the Company expects to issue an insignificant amount of shares for option exercises during 2014.

 

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 for the years ended December 31, 2013, 2012, and 2011. No options have been granted since February of 2012:

 

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

2011

Dividend yield(1)

                       -

 
2.47% 

 
2.36% 

Expected life in years(2)

                      -

 
7.0 

 
7.0 

Expected volatility(3)

                       -

 
41.53% 

 
41.02% 

Risk-free interest rate(4)

                       -

 
1.24% 

 
2.71% 

 

 

 

 

 

 

Weighted average fair value per option granted

$                     -

 

$               4.76

 

$               4.31

 

(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 stock price over the expected life of the options.

(4) Based upon the U.S. 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 vested or are expected to vest and stock options exercisable as of December 31, 2013:

 

 

 

 

 

 

 

 

Stock Options Vested or Expected to Vest

 

Exercisable

Stock options (number of shares)

 
393,582 

 

 
200,904 

Weighted average remaining contractual life in years

 
6.05 

 

 
4.67 

Weighted average exercise price on shares above water

$
15.12 

 

$
16.48 

Aggregate intrinsic value

$
3,433,532 

 

$
1,355,386 

 

 

 

 

 

 

 

Summary of Nonvested Stock Activity

The following table summarizes the nonvested stock activity for the year ended December 31, 2013:

 

 

 

 

 

 

 

Number of Shares of Restricted Stock

 

Weighted Average Grant-Date Fair Value

Balance, December 31, 2012
187,700 

 

$
13.15 

Granted
126,172 

 

 
18.80 

Vested
(19,763)

 

 
13.26 

Forfeited
(33,346)

 

 
15.22 

Balance, December 31, 2013
260,763 

 

 
16.47 

 

Estimated Unamortized Compensation Expense Recognized in Future

The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of December 31, 2013 that will be recognized in future periods is as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Options

 

Restricted Stock

 

Total

 

2014

$
315 

 

$
1,194 

 

$
1,509 

 

2015

 
241 

 

 
960 

 

 
1,201 

 

2016

 
143 

 

 
342 

 

 
485 

 

2017

 
27 

 

 
44 

 

 
71 

 

Total

$
726 

 

$
2,540 

 

$
3,266