Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company adopted the 2005 Stock Incentive Plan (“2005 Plan”) following stockholders’ approval at the 2005 Annual Meeting of Stockholders. Subsequent to the adoption of the 2005 Plan, no additional grants may be issued under the prior plans.

The 2005 Plan provides grants of up to 833,333 shares, which includes any remaining shares subject to stock awards under the prior plans for future awards, or which have been forfeited, cancelled or expire. Grants from the 2005 Plan may take any of the following forms: incentive stock options, nonqualified stock options, restricted stock, restricted units, performance shares, performance units, stock appreciation rights or dividend equivalent rights. As of December 31, 2013, the Company had 361,219 shares available for grant.

(a)Stock Options:  Under the terms of the 2005 Plan, the exercise price of each incentive stock option must be greater than or equal to the market price of the Company’s stock on the date of the grant. The plan further provides that no incentive stock option granted to a single grantee may exceed $100 thousand in aggregate fair market value in a single calendar year. Stock options vest over a period of no greater than five years from the date of grant. Additionally, the right to exercise the option terminates ten years from the date of grant.

The following table summarizes information on stock option activity during 2013:

	Shares		Weighted average exercise price per share		Weighted average remaining contractual terms (in years)	Total intrinsic value (in thousands)
Outstanding, January 1, 2013	107,845		$	11.58
Granted	—		—
Exercised	(10,715	)	11.60			$	46
Forfeited, expired or cancelled	(1,763	)	15.98
Outstanding, December 31, 2013	95,367		$	11.50	3.74	$	594
Exercisable at December 31, 2013	95,367		$	11.50	3.74	$	594

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (i.e., the difference between the Company’s closing stock price on December 31, 2013, and the exercise price, times the number of shares) that would have been received by the option holders had all the option holders exercised their options on December 31, 2013.  This amount changes based upon the fair market value of the Company’s stock. The total intrinsic value of options exercised for the years ended December 31, 2013, 2012 and 2011 was $46 thousand, $238 thousand and $191 thousand, respectively.

The Company recognizes compensation expense for stock option grants on a straight-line basis over the requisite service period of the grant.  No stock-based compensation expense was recognized for the year ended December 31, 2013.  The Company recognized $8 thousand and $86 thousand in stock-based compensation expense, as a component of salaries and benefits, for the years ended December 31, 2012 and 2011, respectively. As of December 31, 2013, there was no remaining unrecognized compensation costs related to nonvested stock option grants.

(b)Restricted Stock Awards: The Company grants restricted stock periodically for the benefit of employees.  Recipients of restricted stock do not pay any cash consideration to the Company for the shares and receive all dividends with respect to such shares, whether or not the shares have vested. Restrictions are based on continuous service requirements with the Company.

At December 31, 2013 and 2012, there were no restricted stock awards outstanding.  The total intrinsic value of restricted stock vested for the year ended December 31, 2011 was $16 thousand.

For the years ended December 31, 2013 and 2012, the Company did not recognize any restricted stock compensation expense as a component of salaries and benefits, compared to $8 thousand for the year ended December 31, 2011.

(c)Restricted Stock Units: The Company grants restricted stock units (“RSU”) periodically for the benefit of employees and directors. Recipients of RSUs receive shares of the Company’s stock upon the lapse of their related restrictions and do not pay any cash consideration to the Company for the shares.  Restrictions are based on continuous service.

The following table summarizes information on RSU activity during 2013:

	Shares		Weighted average fair value per share		Weighted average remaining contractual terms (in years)
Outstanding, January 1, 2013	99,811		$	13.16
Granted	81,300		13.91
Vested	(47,605	)	13.16
Forfeited, expired or cancelled	(6,197	)	13.53
Outstanding, December 31, 2013	127,309		$	13.62	1.83

For the year ended December 31, 2013, 2012 and 2011, the Company recognized $878 thousand, $803 thousand and $529 thousand in RSU compensation expense, respectively, as a component of salaries and benefits.  As of December 31, 2013, there was $1.1 million of total unrecognized compensation costs related to nonvested RSUs which is expected to be recognized over a weighted-average period of 1.7 years.