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Incentive Plan
 12 Months Ended
Dec. 31, 2011
Incentive Plan [Abstract]  
Incentive Plan

(13) Incentive Plan

The Company has established the Amended and Restated OceanFirst Financial Corp. 1997 Incentive Plan (the "Incentive Plan") which authorizes the granting of stock options and awards of Common Stock and the OceanFirst Financial Corp. 2000 Stock Option Plan which authorizes the granting of stock options. On April 24, 2003 the Company's shareholders ratified an amendment of the OceanFirst Financial Corp. 2000 Stock Option Plan which increased the number of shares available under option. On April 20, 2006 the OceanFirst Financial Corp. 2006 Stock Incentive Plan was approved which authorizes the granting of stock options or awards of common stock. On May 5, 2011, the OceanFirst Financial Corp. 2011 Stock Incentive Plan was approved which also authorizes the granting of stock options or awards of common stock. The purpose of these plans is to attract and retain qualified personnel in key positions, provide officers, employees and non-employee directors ("Outside Directors") with a proprietary interest in the Company as an incentive to contribute to the success of the Company, align the interests of management with those of other stockholders' and reward employees for outstanding performance. All officers, other employees and Outside Directors of the Company and its affiliates are eligible to receive awards under the plans.

Under the 2011 Stock Incentive Plan, the Company is authorized to issue up to an additional 2,400,000 shares subject to option or, in lieu of options, up to 960,000 shares in the form of stock awards. At December 31, 2011, 2,397,500 options or 959,000 awards remain to be issued. Under the 2006 Stock Incentive Plan, the Company is authorized to issue up to an additional 1,000,000 shares subject to option or, in lieu of options, up to 333,333 shares in the form of stock awards. At December 31, 2011, 17,069 options or 5,690 awards remain to be issued. All options expire 10 years from the date of grant and generally vest at the rate of 20% per year. The exercise price of each option equals the closing market price of the Company's stock on the date of grant. The Company typically issues Treasury shares to satisfy stock option exercises.

 

A summary of option activity for the years ended December 31, 2011, 2010 and 2009 follows:

 

     2011      2010      2009  
     Number
of
Shares		     Weighted
Average
Exercise
Price		      Number
Of
Shares		     Weighted
Average
Exercise
Price		      Number
Of
Shares		     Weighted
Average
Exercise
Price		  

Outstanding at beginning of year

      1,855,113      $ 18.75         1,636,886      $ 20.10         1,557,112      $ 20.55   

Granted

      245,575        13.86         300,745        10.09         97,879        12.28   

Exercised

      (3,766 )      11.20         (600 )      12.28         (7,863 )      12.01   

Forfeited

      (44,252 )      17.87         (34,308 )      15.99         (8,612 )      21.45   

Expired

      (8,737 )      15.03         (47,610 )      12.49         (1,630 )      9.87   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of year

      2,043,933      $ 18.21         1,855,113      $ 18.75         1,636,886      $ 20.10   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Options exercisable

      1,407,271           1,255,703           1,167,748     
  

 

 

       

 

 

       

 

 

    

The following table summarizes information about stock options outstanding at December 31, 2011:

 

     Options Outstanding      Options Exercisable  

Exercise

Prices

    Number
of
Options		      Weighted Average
Remaining
Contractual Life		      Weighted Average
Exercise Price		      Number
Of
Options		      Weighted Average
Remaining
Contractual Life		      Weighted Average
Exercise Price		  

$10.00 to 12.28

      366,794         7.87 years       $ 10.62         90,550         7.71 years       $ 10.93   

13.87 to 13.87

      244,376         9.08         13.87         —           —           —     

16.81 to 17.88

      503,762         2.45         17.46         424,297         1.77         17.58   

18.64 to 23.07

      494,375         3.39         22.13         457,798         3.25         22.18   

23.44 to 26.265

      434,626         2.62         23.49         434,626         2.62         23.49   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     2,043,933         4.48 years       $ 18.21         1,407,271         2.90 years       $ 20.47   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

The aggregate intrinsic value for stock options outstanding and stock options exercisable at December 31, 2011 is $900,000 and $194,000, respectively.

A summary of the granted but unvested stock award activity for the years ended December 31, 2011, 2010 and 2009 follows:

 

     2011      2010      2009  
     Number
of
Shares		     Weighted
Average
Grant Date
Fair Value		      Number
Of
Shares		     Weighted
Average
Grant Date
Fair Value		      Number
of
Shares		     Weighted
Average
Grant Date
Fair Value		  

Outstanding at beginning of year:

      81,592      $ 12.44         79,399      $ 13.56         26,348      $ 19.98   

Granted

      26,202        13.81         19,460        10.06         60,120        11.53   

Vested

      (58,646 )      12.38         (8,208 )      18.69         (7,069 )      20.22   

Forfeited

      —          —           (9,059 )      11.46         —          —     
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of year

      49,148      $ 13.25         81,592      $ 12.44         79,399      $ 13.56