Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  

Note 10



As of December 31, 2012, the Company had three stock-based compensation plans, consisting of the 2011 Associate Incentive Plan (“AIP”), the 2011 Associate Stock Purchase Plan (“ASPP”), and the 2011 Director Stock Purchase Plan (“DSPP”).  These plans, which were approved by the shareowners in April 2011, replaced substantially similar plans approved by the shareowners in 2004. Total compensation expense associated with these plans for 2010 through 2012 was $0.1 million, $0.1 million, and $0.5 million, respectively.


AIP.  The Company’s AIP allows the Company's Board of Directors to award key associates various forms of equity-based incentive compensation.  In 2012, the Company, pursuant to the terms and conditions of the AIP, created the 2012 Incentive Plan (“2012 Plan”), under which all participants in the 2012 plan were eligible to earn performance shares. Awards under the 2012 Plan were tied to internally established earnings goals. The grant-date fair value of the shares eligible to be awarded in 2012 was approximately $0.7 million.  In addition, each plan participant is eligible to receive from the Company a tax supplement bonus equal to 31% of the stock award value at the time of issuance. A total of 78,598 shares were eligible for issuance of which 28,470 were earned. For 2010 and 2011, the Company recognized no expense for the AIP. 


Executive Stock Option Agreement. Prior to 2007, the Company maintained a stock option program for a key executive officer (William G. Smith, Jr. - Chairman, President and CEO, CCBG). The status of the options granted under this arrangement is detailed in the table provided below. In 2007, the Company replaced its practice of entering into an annual stock option arrangement by establishing a Performance Share Unit Plan under the provisions of the AIP that allows the executive to earn shares based on the compound annual growth rate in diluted earnings per share over a three-year period. For 2010 through 2012, the Company recognized no expense related to this plan.


A summary of the status of the Company’s option shares is presented below:


Options   Shares   Weighted-Average Exercise Price   Weighted-Average Remaining Contractual Term   Aggregate Intrinsic Value
Outstanding at January 1, 2012     60,384     $ 32.79     $ 2.9     $ —    
Granted     —         —         —         —    
Exercised     —         —         —         —    
Forfeited or expired     —         —         —         —    
Outstanding at December 31, 2012     60,384     $ 32.79     $ 1.9     $ —    
Exercisable at December 31, 2012     60,384     $ 32.79     $ 1.9     $ —    


DSPP.  The Company’s DSPP allows the directors to purchase the Company’s common stock at a price equal to 90% of the closing price on the date of purchase.  Stock purchases under the DSPP are limited to the amount of the directors’ annual retainer and meeting fees.  Under the 2011 DSPP there were 150,000 shares reserved for issuance.  For 2012, the Company issued 25,864 shares under the DSPP and recognized approximately $21,000 in expense related to this plan.  For 2011, the Company issued 21,872 shares and recognized approximately $23,000 in expense related to the DSPP.  In 2010, 22,152 shares were issued and approximately $26,000 in expense was recognized under the DSPP.


ASPP.  Under the Company’s ASPP, substantially all associates may purchase the Company’s common stock through payroll deductions at a price equal to 90% of the lower of the fair market value at the beginning or end of each six-month offering period.  Stock purchases under the ASPP are limited to 10% of an associate's eligible compensation, up to a maximum of $25,000 (fair market value on each enrollment date) in any plan year.  Shares are issued at the beginning of the quarter following each six-month offering period.  Under the 2011 ASPP there were 593,750 shares of common stock reserved for issuance.   For 2012, the Company issued 43,378 shares under the ASPP and recognized approximately $119,000 in expense related to this plan.  For 2011, the Company issued 38,210 shares and recognized approximately $72,000 in expense related to the ASPP.   For 2010, the Company issued 41,486 shares and recognized approximately $109,000 in expense under the ASPP.


Based on the Black-Scholes option pricing model, the weighted average estimated fair value of each of the purchase rights granted under the ASPP was $1.61 for 2012.  For 2011 and 2010, the weighted average fair value purchase right granted was $1.74 and $2.67, respectively.  In calculating compensation, the fair value of each stock purchase right was estimated on the date of grant using the following weighted average assumptions:


    2012   2011   2010
Dividend yield     —   %     3.5 %     4.4 %
Expected volatility     32.0 %     31.0 %     41.0 %
Risk-free interest rate     0.1 %     0.2 %     0.2 %
Expected life (in years)     0.5       0.5       0.5