NOTE 6.                                                 STOCKHOLDERS’ EQUITY

During the six months ended June 30, 2013 the Company paid $26.3 million or $0.18 per share in cash dividends compared to $23.4 million or $0.16 per share during the same period in 2012.  During the second quarter ended June 30, 2013, the Company repurchased 172,589 shares from the open market of its $1 par value common stock at a weighted average price of $24.41 per share compared to 713,781 shares purchased at a weighted average price of $21.06 during the same period in 2012. During the six months ended June 30, 2013, the company repurchased 172,589 shares of its $1 par value common stock at a weighted average price of $24.41 per share compared to 781,781 shares purchased at a weighted average price of $20.93 during the same period in 2012.  The Company repurchased $0.4 million and $0.2 million of common stock for the three months ended June 30, 2013 and 2012, respectively, and repurchased $4.9 and $3.6 million of common stock for the six months ended June 30, 2013 and 2012, respectively, from employees for the payment of taxes on vesting restricted shares.

As more fully discussed in Note 14 of the Company’s notes to the consolidated financial statements in its 2012 Annual Report on Form 10-K, stock options, time lapse restricted shares (TLRS’s) and restricted stock units have been issued to officers and other management employees under the Company’s Employee Stock Incentive Plans.  The Company issues new shares from its authorized but unissued share pool.  At June 30, 2013, approximately 4.0 million shares of the Company’s common stock were reserved for issuance.

Stock Options

Stock options generally vest over a five-year period and expire ten years from the issuance date.

During the second quarter ended June 30, 2013, no shares of common stock were issued upon exercise of stock options by employees compared to approximately 13,000 shares for the same quarter in the prior year.  The Company has no outstanding stock options as of June 30, 2013. In total for the six months ended June 30, 2013, 1,000 shares of common stock were issued upon exercise of stock options by employees and approximately 26,000 shares for the six months ended June 30, 2012.

Options activity outstanding under the Company’s stock option plan as of June 30, 2013 and changes during the six months ended June 30, 2013, were as follows:

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that day. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.

The aggregate intrinsic value of options exercised during the six months ended June 30, 2013 and June 30, 2012 was $20 thousand and $0.4 million, respectively. Exercise of options for the second quarter ended June 30, 2013 and 2012 resulted in no cash receipts and less than $1 thousand, respectively.

Time Lapse Restricted Shares and Restricted Stock Units

The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:

The Company recognized a tax benefit of approximately $0.4 million and $0.3 million during the second quarters ended June 30, 2013 and 2012, respectively, and approximately $3.1 million and $2.9 million for the six months ended June 30, 2013 and 2012, respectively related to the amortization of restricted shares which have been recorded as increases to paid-in capital.

The following table summarizes information on unvested restricted stock outstanding as of June 30, 2013:

At June 30, 2013 and December 31, 2012, the Company had $36.6 million and $36.7 million of total unrecognized compensation cost, respectively, related to time-lapse restricted shares that are expected to be recognized over a weighted average period of approximately 4.2 years and 4.1 years, respectively.