Share-Based Payments

3 Months Ended

Mar. 31, 2017

Share-Based Payments

Note 15 — Share-Based Payments

The Company’s 2002 Stock Award and Incentive Plan (the “Plan”), as amended, provides for the awarding of stock options and restricted stock to employees, officers and non-employee directors. Under the Plan, the Company grants directors, certain officers and other key employees restricted common stock, with vesting contingent upon completion of specified service periods ranging from one to five years. The Company also grants certain officers performance-based awards, with vesting contingent upon the Company’s achievement of specified financial goals. The Plan is more fully described in Notes 15 and 17 to the Consolidated Financial Statements in the Company’s 2016 Annual Report on Form 10-K.

The following table summarizes the total share-based compensation expense and related tax benefits recognized for the three months ended March 31, 2017 and 2016 (in thousands):

	Three Months EndedMarch 31,
	2017		2016
Restricted stock compensation expense	$	748	$	623
Tax benefit related to restricted stock compensation		—		—

No stock options were outstanding as of December 31, 2016 and there has been no stock option activity pursuant to the Plan for the three months ended March 31, 2017.

Restricted stock award activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows:

	Restricted Stock Awards
	Number of Shares			Weight Average Grant Fair Value
Outstanding, December 31, 2016		196,453		$	7.01
Awarded		967,889			5.15
Released		(67,544	)		8.34
Forfeited		—			—
Outstanding, March 31, 2017		1,096,798			5.29

As of March 31, 2017, there was $4.2 million of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a weighted-average period of 5.05 years.

The Company granted Restricted Stock Units (“RSUs”) to certain non-executive personnel during the first quarter of 2017. RSUs are not treated in the same manner as Restricted Stock Awards (“RSAs”) as the Company does not issue the shares until the vest timing. Vesting of RSUs is predicated upon meeting certain criteria related to service, performance and/or market based conditions.

Restricted stock unit activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows:

	Restricted Stock Units
	Number of Shares		Weight Average Grant Fair Value
Outstanding, December 31, 2016		—	$	—
Awarded (January 1, 2017)		1,001,206		5.15
Released		—		—
Forfeited		—		—
Outstanding, March 31, 2017		1,001,206		5.15

As of March 31, 2017, there was $4.2 million of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 6.59 years.