Stock-based Compensation

6 Months Ended

Jun. 30, 2013

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

Stock-Based Compensation

Stock-based Compensation

The fair value of each stock option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted-average assumptions for options granted during the six months endedJune 30, 2013 and 2012, respectively: risk-free interest rates of 1.4% and 1.7%; volatility factors of the expected market price of the Company's common stock of 41% and 48%; assumed forfeiture rates of 11.16% and 8.97%; weighted-average expected lives of the options of 7.5 years for both June 30, 2013 and June 30, 2012; and no cash dividends. Using these assumptions, the weighted-average fair value of options granted for the six months endedJune 30, 2013 and 2012 was $7.54 and $5.99 per option, respectively. In the first six months of 2013, the Company granted 126,271 options to purchase shares of the Company's stock at exercise prices ranging from $16.53 to $17.10 per share.

The Company recorded stock-based compensation expense of approximately $499,000 and $423,000 during the first six months ended June 30, 2013 and June 30, 2012, respectively. In accordance with Financial Accounting Standards Board (FASB) guidance on stock-based payments, during the first quarters of 2013 and 2012 the Company reversed $135,000 and $230,000, respectively, of expense that had been recorded in prior periods as a result of the reconcilement of projected option forfeitures to actual option forfeitures for all stock options granted during the first quarters of 2009 and 2008, respectively.